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Florida State Taxes

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State Income Taxes in Florida

The state of Florida does not have individual income tax. One of only nine (9) states in the union with no individual income tax.

State Business Taxes in Florida

The state of Florida does have a Corporate income tax which is calculated one of two ways: 

  • 5.50% of Federal taxable income, or
  • 3.30% of Alternative Minimum Tax (AMT) based on Federal AMT

 Keep in mind: the first $50K of income is exempt. Secondly, income from flow-thru entities, such as S Corporations and LLCs are not subject to the Florida Corporate Income tax.

Sales and Property Taxes in Florida

Sales Tax – Like most states, Florida has both local and state sales tax. Florida sales tax rates are broken down as follows – 6.00% is the the average Florida sales tax rate, is 1.05% is the average local Florida sales tax rate (bringing the total average Florida sales tax rate to 7.05%).

Property Taxes – The average property tax rate for residential property in the state of Florida is 0.94%, which is right in line with the the country’s average of 0.93%.

Hotel and Bed Sales Tax

Since Florida does not have a state income tax for individuals, they figured out different ways to generate revenue for the state. Some of those ways are the Florida Hotel Tax and various Florida Bed Taxes. The Florida Hotel Tax is a Sales Tax placed on rentals. So if you own a short-term rental in Florida, you will have to submit monthly sales tax to the state. If you use a 3rd party online booking platform such as AirBNB or VRBO, they will collect and submit the Florida Hotel Tax. However some counties have introduce additional Bed Taxes on top of the Florida Hotel Tax. For example, the county of South Walton created an additional 5% Bed Tax formally named the South Walton Tourist Development Tax. This is currently not collected by 3rd party online booking platforms and must be submitted separately.

Unemployment Taxes in Florida

Unemployment taxes usually consist of three factors. They are the wage base, range of rates, number of schedules. Below is an outline of the three.

  • Wage Base – Florida has a wage base of $7,000 for 2020
  • UI Rates – range from 0.10% to 5.40%, which is a high upper limit.
  • Schedules – Florida has a single schedule regarding UI taxes

Florida Business Entities – LLCs

The cost of setting up an LLC in Florida is slightly more expensive than other states. Here are some important facts:

  • Annual fee is $138.75 per year
  • First year you file there is an additional setup fee of $125.00
  • Secretary of State of Florida website – click here

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