Does Florida Have a State Income Tax?

Florida doesn’t have a state income tax. Other taxes Florida residents pay include property tax, sales tax, and business taxes.

This post is provided for general information only. Please confirm the details and circumstances of your unique situation with your tax accountant or other appropriate advisor before taking action.

Florida Income Tax

Florida has no income tax at all. This includes no taxes on wages or other earned income as well as no taxes on investments.

Florida Dividends and Interest Tax

Florida does not have an income tax on dividends or interest. Some “tax-free states” have no income tax on job income but do tax dividends and interest. Florida has no income tax at all.

Florida Capital Gains Tax

Florida does not have a capital gains tax. A capital gains tax is an income tax. See above.

Florida Property Tax

Florida residents do pay a property tax. It’s actually below the national average despite the state having no income tax. You can learn more about Florida property taxes here.

Florida Sales Tax

Florida does have a sales tax on almost all purchases except groceries. Florida’s sales tax is slightly above the national average. You can learn more about Florida sales taxes here.

Florida Corporation Income Tax

Florida does have an income tax on corporations. The rate is 5.5%. The tax rate only applies to C-corporations. It doesn’t apply to S-corporations, LLCs, partnerships, or sole proprietors. You can learn more about Florida corporation income taxes here.

Florida Employer Tax Withholding

Employers in Florida do need to withhold and pay payroll taxes. In addition to federal tax withholding, employers have to pay the state unemployment tax. You’ll need to fill out a Florida Business Tax Application to do so.

Florida Tourist Tax

Florida has some pretty steep tourist taxes that apply to hotel rooms and other short-term rentals. This is why other Florida taxes can be lower.

If you’re a landlord, you should be aware of Florida’s rental property taxes. Any rental that’s six months or less may be subject to both normal sales tax and the transient rental tax.

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