Florida has no personal income tax. Wages, investment returns, retirement distributions, and Social Security benefits are all free from state-level income tax, and individual residents do not file a state return. The one group that pays a Florida income tax is C-corporations, which owe 5.5 percent on net income earned in the state.
What Florida Doesn’t Tax
The exemption for individuals is complete. Salaries, tips, commissions, and self-employment earnings are not taxed by the state. Neither is investment income: interest from bank accounts, dividends from stock holdings, and capital gains from selling assets all pass through untouched at the state level. Florida also repealed its intangible personal property tax in 2007, so investment holdings are no longer subject to that levy either.1State of Florida.com. Florida Tax Guide
Retirees do particularly well. Distributions from 401(k) plans, traditional and Roth IRAs, pensions, and annuities carry no state tax. Social Security benefits are likewise excluded, so seniors keep their full federal benefit amount without a state reduction.
Because there is no individual income tax, there is no annual state return to file with the Florida Department of Revenue. That piece of paperwork simply does not exist for residents.
Why Florida Has No Income Tax
The absence of a personal income tax is written into the state constitution, not just left to legislative preference. Article VII, Section 5 bars any tax on the income of natural persons above what the federal government or another state would credit against a similar tax.2FindLaw. Florida Constitution Art. VII, Section 5 – Estate, Inheritance and Income Taxes Because the federal government offers no such credit, the constitutional cap works out to zero. Florida cannot collect income tax from individuals under this framework.
Changing that requires a constitutional amendment. A proposed amendment can reach the ballot through a legislative joint resolution, a citizen initiative petition, or a recommendation from the Constitution Revision Commission or the Taxation and Budget Reform Commission. Whichever path it takes, it needs 60 percent voter approval to pass.3Florida Department of State. Constitutional Amendments/Initiatives A personal income tax is not something that can appear through a routine legislative vote.
The same constitutional provision treats corporations differently. It allows the state to tax corporate income at up to 5 percent of net income, or higher if three-fifths of both legislative chambers approve.2FindLaw. Florida Constitution Art. VII, Section 5 – Estate, Inheritance and Income Taxes
Florida Corporate Income Tax
C-corporations doing business in Florida owe 5.5 percent on their net income.4The Florida Legislature. Florida Statutes Title XIV Chapter 220 – 220.11 Tax Imposed That rate has applied for taxable years beginning on or after January 1, 2022.5Florida Dept. of Revenue. Tax and Interest Rates
The tax starts from federal taxable income, applies Florida-specific additions and subtractions, and then allows a $50,000 standard exemption.6Florida Senate. Florida Statutes Chapter 220 Section 14 – Exemption A corporation with adjusted net income under $50,000 owes nothing.
Who Owes It
The tax applies to C-corporations and to any entity the IRS classifies as a corporation for federal tax purposes. A business is covered if it earns income in Florida, is organized in Florida, or is otherwise doing business in the state.4The Florida Legislature. Florida Statutes Title XIV Chapter 220 – 220.11 Tax Imposed
Sole proprietorships, partnerships, S-corporations, and most LLCs are not subject to this tax. Their income passes through to the owners, who then owe no Florida income tax on it. The exception is an LLC that elects to be taxed as a C-corporation at the federal level; that election pulls it into the 5.5 percent regime.
A corporation operating in multiple states does not pay Florida tax on all of its nationwide income. It apportions its income using a formula based on its Florida property, payroll, and sales relative to its totals everywhere, and only the Florida share is taxed.7Legal Information Institute. Florida Admin. Code R. 12C-1.015 – Apportionment of Income
Filing and Penalties
The return is Form F-1120, due on the first day of the fifth month after the close of the corporation’s tax year. For calendar-year filers with a December 31 year-end, that means May 1. Form F-7004 extends the deadline to September 1 for calendar-year filers.8Florida Dept. of Revenue. Corporate Income Tax Due Dates
Corporations that paid $5,000 or more in Florida corporate income tax during the prior state fiscal year, or that must file their federal return electronically, also have to file their Florida return electronically.9Florida Dept. of Revenue. Corporate Income Tax
Late filing is costly. If you miss the deadline, including any extension, the penalty is 10 percent of the tax owed for the first month and another 10 percent for each additional month or partial month, capped at 50 percent. Even when no tax is due, failing to file at all triggers a flat $50 per month penalty, capped at $300.10The Florida Legislature. Florida Statutes Chapter 220 – 220.801 Penalties for Failure to Timely File Returns
Moving to Florida: Establishing Residency
If you’re moving from a state that does have an income tax, your former state may keep claiming you as a resident until you clearly establish domicile elsewhere. That claim can translate into continued state income tax bills on your earnings.
Florida law lets you file a Declaration of Domicile, a sworn statement recorded with the clerk of the circuit court in your county. It states that your permanent home is in Florida, and if you also keep a home in another state, it establishes that your Florida residence is your predominant and principal home. The declaration must be signed under oath before a notary or other authorized official.11The Florida Legislature. Florida Statutes Chapter 222 – 222.17 Declaration of Domicile
The declaration alone may not settle the question if your former state pushes back. Practical steps that back it up include getting a Florida driver’s license, registering to vote in Florida, updating your address with banks and financial institutions, and spending the majority of your time in the state.
Federal Taxes Still Apply
No state income tax does not mean no income tax. Every Florida resident who meets the IRS filing thresholds owes a federal return on Form 1040. For 2025, a single filer under 65 generally has to file at $15,750 of gross income or more, and married couples filing jointly where both spouses are under 65 at $31,500 or more.12Internal Revenue Service. Check if You Need to File a Tax Return
Every category Florida leaves alone — wages, investment returns, retirement distributions, and Social Security above certain thresholds — is still reported and potentially taxed federally. Federal brackets apply based on your filing status and total taxable income, no differently than for residents of any other state.13Internal Revenue Service. Who Needs to File a Tax Return
If you earn significant income that isn’t subject to employer withholding, such as self-employment income, rental income, or investment gains, you likely need to make quarterly estimated payments to the IRS. The due dates are April 15, June 15, September 15, and January 15 of the following year, shifting to the next business day when they fall on a weekend or federal holiday.14Internal Revenue Service. Estimated Tax Underpaying through the year can produce a penalty at filing time.
Skipping a federal return or underpaying carries real consequences regardless of state. Interest accrues on unpaid balances, the IRS can place liens on property, and willful failure to file can bring criminal prosecution.13Internal Revenue Service. Who Needs to File a Tax Return Florida’s state tax status has no bearing on any of it.
Other Florida Taxes to Know About
Florida funds itself through several taxes other than income. These matter if you’re budgeting around the move or running a business.
Sales tax runs 6 percent on most retail purchases of goods and some services, with counties adding a discretionary surtax that typically ranges from 0.5 to 2.5 percent.15Florida Dept. of Revenue. Florida Sales and Use Tax
Employers pay a reemployment tax (Florida’s version of unemployment insurance) on the first $7,000 of each employee’s annual wages. New employers start at 2.7 percent for the first 10 calendar quarters, after which the rate adjusts based on the employer’s experience rating.16Florida Dept. of Revenue. Reemployment Tax Rate Information
Businesses that own equipment, furniture, fixtures, or other tangible personal property as of January 1 must file Form DR-405 with their county property appraiser by April 1.17Florida Dept. of Revenue. Tangible Personal Property This covers sole proprietors, partnerships, corporations, self-employed contractors, and anyone leasing or lending property. The first $25,000 of assessed value per return is exempt.18The Florida Legislature. Florida Statutes Chapter 196 – 196.183 Exemption for Tangible Personal Property If all your business property falls under that threshold, you may still need to file to claim the exemption, but you won’t owe anything.