The average tax rate in Florida is hard to state as a single number because the state collects nothing from personal income and everything else depends on where you live and what you spend. Florida charges no state income tax at all. The state sales tax is 6%, with counties adding up to 1.5% on top. Property taxes are set locally and average around 0.75% of a home’s market value. Add in fuel, tobacco, alcohol, and communications taxes, and a typical Florida household still pays several thousand dollars a year in state and local taxes, just none of it tied to earnings.
No State Income Tax
Florida’s constitution effectively bars the state from taxing personal income. Article VII, Section 5(a) says the state cannot levy an income tax on residents beyond what the federal government allows as a credit against federal taxes.1Florida Senate. Florida Constitution The federal code offers no such credit, so the practical rate is zero. You don’t file a state return, and wages, investment income, and retirement distributions all escape state taxation.
That’s the single biggest reason Florida’s overall tax burden looks low compared to states with income tax brackets running 5% or higher. The tradeoff is that Florida leans harder on what you spend and what you own.
Sales Tax
Sales tax is Florida’s main revenue source. The state charges 6% on most goods and some services.2Florida Statutes. Florida Code 212.05 – Sales, Storage, Use Tax Counties can add a discretionary surtax ranging from 0.5% to 1.5%.3Florida Dept. of Revenue. Discretionary Sales Surtax Some counties add nothing. The total at the register lands between 6% and 7.5% depending on where you shop.
What’s Exempt
Groceries (non-prepared food from a store), prescription drugs, medical equipment, and prosthetic devices are exempt. Candy, soft drinks, and any food sold for immediate consumption, like restaurant meals or prepared deli items, are taxable.
Sales Tax Holidays
Florida runs annual sales tax holidays that temporarily expand exemptions. The back-to-school holiday typically covers all of August for clothing under $100, school supplies under $50, and computers under $1,500. Disaster preparedness items such as portable generators, batteries, and fire extinguishers became permanently exempt starting in August 2025.4Florida Dept. of Revenue. Sales Tax Holidays The legislature may authorize additional holidays each year.
Property Tax
Property tax in Florida is entirely local. There’s no statewide property tax. Counties, cities, school districts, and special districts each set their own rates in millage. One mill equals $1 in tax for every $1,000 of assessed value, or one-tenth of one percent.5Florida Senate. Florida Statutes 192 – Taxation General Provisions Your bill is the sum of all applicable millage rates multiplied by your assessed value.
The average effective property tax rate statewide is roughly 0.75% of a home’s market value. Your actual rate could run higher or lower depending on your local taxing authorities and any exemptions you qualify for.
Homestead Exemption
If you own your primary residence and live there as of January 1, you can claim a homestead exemption worth up to $50,000. The first $25,000 reduces assessed value for all tax levies, including school taxes. A second $25,000 applies to assessed value above $50,000, but only for non-school taxes, and that second chunk adjusts annually for inflation.6Florida Statutes. Florida Code 196.031 – Exemption of Homesteads You file Form DR-501 with your county property appraiser by March 1.7Florida Department of Revenue. Homestead Property Tax Exemption
Additional exemptions exist for specific groups. Veterans with a service-connected total and permanent disability can receive a full homestead exemption. Veterans with at least a 10% disability rating get an extra $5,000 reduction. Seniors 65 and older with household income below a threshold set annually (currently around $38,686) may qualify for a further exemption on top of the standard homestead benefit.
Save Our Homes Cap
Once your home has a homestead exemption, Florida caps annual increases in assessed value at 3% or the change in the Consumer Price Index, whichever is lower.8Florida Statutes. Florida Code 193.155 – Homestead Assessments In a hot market, the cap creates a widening gap between assessed value and what your home would sell for. The protection resets when you sell or lose the homestead exemption, and the new owner starts at full market value.
Early Payment Discounts
Florida rewards paying property taxes before the March deadline. You get a 4% discount in November, 3% in December, 2% in January, and 1% in February. On a $4,000 tax bill, paying in November saves $160.
Real Estate Transfer Taxes
Buying or selling property triggers two taxes at closing. A documentary stamp tax of 70 cents per $100 of the sale price applies to every deed.9Florida Statutes. Florida Code 201.02 – Tax on Deeds and Other Instruments On a $400,000 home, that’s $2,800. Miami-Dade uses a different structure with a 60-cent base rate and a 45-cent surtax on most transfers, though single-family homes are excluded from the surtax.10Florida Department of Revenue. Documentary Stamp Tax
If you take out a mortgage, a one-time nonrecurring intangible tax of 2 mills ($2 per $1,000) applies to the loan amount.11Florida Statutes. Florida Code 199.133 – Levy of Nonrecurring Tax On a $300,000 mortgage, that’s $600. A refinance only triggers the tax on new money borrowed above your existing balance. A separate documentary stamp tax of 35 cents per $100 also applies to the promissory note.
Excise Taxes
Florida taxes specific products directly, and those costs are usually built into the retail price rather than itemized.
Motor Fuel
Gas taxes combine a state excise, a local option tax, an inspection fee, and a pollutants tax. Several components adjust annually with the Consumer Price Index.12Florida Senate. Florida Code 206.9955 – Levy of Natural Gas Fuel Tax Combined, drivers pay roughly 35 to 40 cents per gallon in state and local fuel taxes, putting Florida mid-pack nationally.
Tobacco
Cigarettes carry a combined state tax of $1.339 per pack of 20, made up of a $0.339 excise tax and a $1.00 surcharge.13Florida Department of Business and Professional Regulation. Alcoholic Beverages and Tobacco – Tax Rate Info Federal excise adds another $1.01, so roughly $2.35 in government taxes sits on every pack.
Alcohol
Alcoholic beverages are taxed by the gallon at rates that climb with alcohol content. Beer is taxed at the lowest per-gallon rate. Wine runs $2.25 to $3.50 per gallon depending on strength and carbonation, and distilled spirits are $6.50 per gallon.14Florida Statutes. Florida Code 564.06 – Excise Taxes on Wines and Beverages
Communications Services
Phone, internet, and streaming services are subject to a communications services tax instead of standard sales tax. The state rate is 4.92%, and local jurisdictions add their own on top.15Florida Department of Revenue. Communications Services Tax A separate 2.52% gross receipts tax also applies. Combined, most bills carry 7% to 12% depending on location.
Corporate Income Tax
Individuals pay nothing, but corporations do. C-corporations and other entities treated as corporations for federal tax purposes owe 5.5% of Florida net income.16Florida Statutes. Florida Code 220.11 – Tax Imposed The first $50,000 of net income is exempt.17Florida Senate. Florida Code 220.14 – Exemption
S-corporations generally don’t owe Florida corporate tax unless they pay federal tax at the entity level. A single-member LLC that’s disregarded federally doesn’t file a Florida return either. If any LLC or partnership has a corporate owner, that owner must report the income on its own Florida return.18Florida Department of Revenue. Corporate Income Tax Sole proprietors and self-employed individuals without a corporate structure owe no Florida income tax on business earnings.
Estate and Inheritance Taxes
Florida has no state estate tax and no inheritance tax. The old “pick-up” tax tied to a now-defunct federal credit was effectively eliminated in 2005. Inheriting property, cash, or investments from a Florida decedent triggers no state tax for the beneficiary. Federal estate tax still applies to large estates, and Florida residents who own real estate in a state that does impose inheritance or estate taxes may still face those taxes on the out-of-state property.19Internal Revenue Service. Estate Tax
What It Adds Up To
The absence of a personal income tax makes Florida cheaper than most states for anyone earning a substantial salary or drawing retirement income. It isn’t tax-free, though. A homeowner in a county with a 7% combined sales tax rate, an 18-mill property tax rate, and normal spending on gas and taxable goods still pays several thousand dollars a year. Those taxes scale with spending and property ownership rather than earnings, which tends to favor higher-income households.
For retirees, the value compounds. Social Security benefits, pensions, and IRA withdrawals all escape state taxation. Someone moving from a state with a 5% or 6% income tax gets an immediate and permanent raise on every dollar of retirement income. The offset shows up in property insurance and local fees that sit outside the tax code but still affect the cost of living. Working out what Florida will cost you means looking at what you own and what you buy, not just what you earn.