Orlando tax rates start with the headline most newcomers care about: Florida levies no personal state income tax, so wages, retirement income, and investment gains face nothing at the state level. What you will actually pay in the Orlando area is a combined 6.5% sales tax, Orange County property taxes calculated from millage rates (roughly 16 to 19 mills depending on where you sit), a 6% tourist development tax on short-term rentals, and transfer taxes when you buy or sell real estate. Businesses add a few more line items on top.
No State Income Tax on Individuals
Florida’s constitution prohibits a personal income tax. Article VII, Section 5 bars the state from taxing residents’ income beyond what the federal government allows as a credit, which in practice means zero.1Florida Senate. The Florida Constitution The rule applies the same whether you earn $30,000 or $3 million.
Corporations are treated differently. Florida imposes a 5.5% corporate income tax on net income above $50,000.2The Florida Legislature. Florida Code 220 – Income Tax Code If your business is an S-corporation, partnership, or sole proprietorship, income passes through to your personal return, and the no-income-tax rule means you owe nothing to the state. Only C-corporations and certain other entities filing a separate Florida corporate return owe the 5.5%.3Florida Dept. of Revenue. Florida Corporate Income Tax
Sales Tax: 6.5% Combined
Florida’s statewide sales tax is 6%, and Orange County adds a 0.5% discretionary surtax, for a combined 6.5% on most purchases.4Florida Senate. Florida Statutes Chapter 212 – Tax on Sales, Use, and Other Transactions You pay it on electronics, clothing, furniture, prepared meals, and most other tangible goods.
The county surtax has a catch worth knowing. It only applies to the first $5,000 of any single item’s price. So on a $10,000 purchase, the 0.5% surtax hits the first $5,000 while the full 6% state tax applies to the whole amount.5Florida Dept. of Revenue. Discretionary Sales Surtax The cap does not apply to services, event admissions, or short-term rentals.
Unprepared groceries, prescription medications, and certain medical supplies are exempt from sales tax entirely.4Florida Senate. Florida Statutes Chapter 212 – Tax on Sales, Use, and Other Transactions
Buy a taxable item online or out of state and have it shipped to your Orlando address? If no sales tax was collected, you owe Florida’s 6% use tax on the purchase.6Florida Department of Revenue. Florida Consumer Information Voluntarily reporting what you owe usually gets the Department of Revenue to waive penalties.
Property Taxes in Orange County
Property tax is the largest recurring tax most Orlando homeowners pay. The Orange County Property Appraiser sets the market value of every parcel as of January 1 each year, and local taxing authorities apply millage rates to that assessed value.7Florida Senate. Florida Statutes 200.001 – Millages Definitions and General Provisions One mill equals $1 per $1,000 of taxable value.
For 2025, combined millage rates inside Orlando city limits ran roughly 18 to 19 mills, while unincorporated Orange County parcels generally fell between 16 and 18 mills. The total comes from several authorities stacked together: county government, your city, the school district, water management districts, and various special districts, each setting its own millage during public budget hearings.
Homestead Exemption and Save Our Homes
If you own and live in your Orlando home as your primary residence, the homestead exemption reduces your taxable value. The first $25,000 of assessed value is exempt from all property taxes, including school district levies. A second $25,000 exemption applies to assessed value between $50,000 and $75,000, but this portion does not reduce school taxes.8The Florida Legislature. Florida Code 196.031 – Exemption of Homesteads Homeowners often assume the full $50,000 applies uniformly; it does not.
Once you have the homestead, the Save Our Homes provision caps annual increases in your assessed value at 3% or the change in the Consumer Price Index, whichever is lower.9The Florida Legislature. Florida Code 193.155 – Homestead Assessments If market values jump 15% in a year, your assessed value for tax purposes moves only a fraction of that. The gap grows over time and resets when you sell.
Payment Discounts and Delinquency
Bills go out by November 1 each year, and Florida discounts early payment on a sliding schedule:10The Florida Legislature. Florida Code 197.162 – Tax Discount Payment Periods
- November: 4% discount
- December: 3% discount
- January: 2% discount
- February: 1% discount
- March: full amount due
On a $4,000 tax bill, paying in November saves $160. Many mortgage servicers with escrow accounts time payments to capture the November discount.
Unpaid taxes become delinquent on April 1 of the following year. The tax collector sells tax certificates on delinquent parcels, typically by June 1, and if taxes remain unpaid for two years after the delinquency date, a certificate holder can apply to force a public sale of the property.11The Florida Legislature. Florida Code 197 – Tax Collections, Sales, and Liens Letting property taxes lapse in Florida has real consequences.
Tourist Development Tax on Short-Term Rentals
Orange County charges a 6% tourist development tax on any rental of six months or less, authorized by Florida Statutes Section 125.0104.12Orange County Government. Tourist Development Tax Citizen Advisory Task Force13The Florida Legislature. Florida Code 125.0104 – Tourist Development Tax It applies to hotels, motels, vacation homes, and any unit listed on Airbnb, Vrbo, or similar platforms. The 6% stacks on top of the 6.5% sales tax, so a short-term rental guest effectively pays 12.5% in combined taxes on the nightly rate.
If you rent property short-term, you register with the Orange County Comptroller’s Office, collect the tax from guests, and remit it on a regular filing schedule.14Orange County Comptroller. Tourist Development Tax Rentals exceeding six continuous months to the same tenant are exempt.
Real Estate Transfer Taxes at Closing
Buying or selling real property in the Orlando area triggers a documentary stamp tax of 70 cents for every $100 of the sale price, including any fraction of $100.15The Florida Legislature. Florida Code 201.02 – Tax on Deeds and Other Instruments On a $400,000 home, that comes to $2,800. Florida custom usually places the cost on the seller, though the parties can negotiate.16Florida Department of Revenue. Documentary Stamp Tax
Mortgages carry two more taxes. Documentary stamp tax on promissory notes secured by real property is 35 cents per $100 of the loan amount, and a separate nonrecurring intangible tax adds $2 per $1,000 of mortgage value. On a $320,000 mortgage, the combined closing taxes run $1,120 in documentary stamps plus $640 in intangible tax. Buyers who budget only for the down payment and lender fees get surprised at closing.
Business Tax Receipts and Sales Tax Filing
Any business operating inside Orlando city limits must obtain a Business Tax Receipt from the City of Orlando.17City of Orlando. Get a Business Tax Receipt You may also need a separate receipt from the Orange County Tax Collector depending on business type and location. These are operating permits rather than income-based taxes, and the annual cost varies by business classification.
Receipts renew annually. If your Orange County receipt is not renewed by September 30, penalties begin accruing October 1 at 10% of the receipt cost, climbing with additional monthly penalties to a 25% maximum.18Orange County Tax Collector. Business Taxes
If your business collects sales tax, returns go to the Florida Department of Revenue. They are due the first day of the month following each reporting period and become late after the 20th.19Florida Department of Revenue. Florida Sales and Use Tax File and pay electronically within that window and you earn a collection allowance of 2.5% of the first $1,200 of tax due, up to $30 per reporting location.
Miss the 20th and the penalty is 10% of the unpaid tax, with a $50 minimum even if you owed nothing.4Florida Senate. Florida Statutes Chapter 212 – Tax on Sales, Use, and Other Transactions Interest also accrues on unpaid balances. Keep point-of-sale records, exemption certificates, and resale documentation organized; the Department audits, and reconstructing years of transactions after the fact is far harder than maintaining clean records from the start.