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STATE RANKING #2

Quick facts: 

-Florida is one of only 8 states that has no state income tax.

-Florida has no inheritance or estate tax!

None

State
Income
Tax

5.50%

state
business
tax

averagE

Property
Taxes

7.05%

Sales
Tax (average)

State Income Taxes in Florida

The state of Florida does not have individual income tax, yay! One of only 8 states in the union.

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 Taxes in Florida

Like most states, Florida has both local and state sales tax. The state rate is 6.00% the average local rate is 1.05% (bringing the total average sales tax rate for Florida to 7.05%).

Property Taxes in Florida

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%.

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
  • If you would like help setting up your LLC, we recommend using IncFile.com. They are simple and easy to use.

State #1

State #3

Romeo Razi, CPA

I’ve been an IRS Revenue Agent and Tax Examiner in the Individual, Business, and Employment Tax Divisions. I know how to legally optimize not just how much money you get to keep, but your overall business and tax strategies and structurings.

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