Yes and no. Florida does have state taxes, but it does not have a personal income tax — the state collects revenue instead through a 6% sales tax, a 5.5% corporate income tax, locally assessed property taxes, and a set of transaction-based taxes on things like real estate transfers and business payroll. For most residents, the day-to-day tax bill in Florida comes from sales tax and property tax, not from a paycheck deduction.
What Florida Does Not Tax
Florida’s constitution bars the legislature from taxing the personal income of individuals. Article VII, Section 5 limits that protection to “natural persons,” meaning people rather than businesses. You owe no state tax on wages, salaries, tips, investment gains, interest, or dividends, and you do not file a state income tax return.
The same is true for retirement income. Social Security benefits, pensions, distributions from 401(k)s, 403(b)s, and IRAs, and annuity payments are all free from state tax in Florida, regardless of amount. Federal income tax may still apply to some of that income, but the state takes nothing.
Florida also imposes no state estate tax, no inheritance tax, and no state gift tax. Heirs of a Florida resident owe the state nothing on what they receive. Federal estate tax can still apply to estates that exceed the federal exemption, but there is no separate state layer on top.
Sales and Use Tax
The state’s primary revenue source is a 6% sales tax on most goods and certain services.1Florida Dept. of Revenue. Florida Sales and Use Tax It applies to tangible personal property like electronics, clothing, vehicles, and furniture, as well as commercial rentals and admission charges. Sellers collect the tax at the register and remit it to the Department of Revenue.
A parallel use tax at the same 6% rate applies when you buy from an out-of-state seller who does not collect Florida sales tax. If you order equipment from an overseas vendor or buy furniture from a dealer in another state, you owe the tax directly to Florida.1Florida Dept. of Revenue. Florida Sales and Use Tax Skipping it can bring penalties and interest if you are audited.
What Is Exempt
Several everyday categories are exempt from sales tax:
- Most groceries — bread, dairy, meat, produce, canned goods, cereal, eggs, and similar staples. Prepared food sold for immediate consumption, like a deli sandwich or restaurant meal, is taxable.2Florida Dept. of Revenue. Nontaxable Medical Items and General Grocery List
- Prescription drugs.
- Over-the-counter remedies such as pain relievers, antacids, cold medicine, cough drops, insulin, first aid kits, and lice treatments.2Florida Dept. of Revenue. Nontaxable Medical Items and General Grocery List
- Oral hygiene products including toothbrushes, toothpaste, floss, and mouthwash.
- Menstrual products, including tampons, sanitary napkins, panty liners, and menstrual cups.
Cosmetics and toilet articles are taxable even when they contain medicinal ingredients, unless dispensed by prescription.
County Surtax on Top of the 6%
Counties can add a discretionary sales surtax to fund transportation, schools, or healthcare. Local rates run from 0.5% to 1.5%, and some counties add nothing at all. The rate that applies is the destination county’s rate, so if a seller ships to a county with a different surtax, that county’s rate governs.3Florida Dept. of Revenue. Discretionary Sales Surtax
Property Taxes
Florida has no state-level property tax. Property tax is assessed locally by counties, cities, school districts, and special taxing districts, and the effective rate averages roughly 0.74% of a home’s market value statewide. Your actual rate depends on which local authorities tax the parcel.
Homestead Exemption
Making a Florida property your permanent residence unlocks a homestead exemption of up to $50,000 off the taxable value. The first $25,000 applies to all property taxes, including school district taxes.4The Florida Statutes. Florida Statutes 196.031 – Exemption of Homesteads A second exemption of up to $25,000 applies to assessed value between $50,000 and $75,000, but this second layer does not reduce school district taxes.5Florida Dept. of Revenue. Property Tax Information for Homestead Exemption The additional exemption is adjusted annually for inflation based on the Consumer Price Index.
File the application with your county property appraiser by March 1 of the tax year. Late filings are sometimes accepted, with the absolute cutoff typically falling in mid-September.
Save Our Homes Cap
Once the homestead exemption is in place, Florida’s Save Our Homes benefit caps the annual increase in your property’s assessed value at the lesser of 3% or the change in the Consumer Price Index.6Florida Dept. of Revenue. Save Our Homes In a rising market that adds up quickly. If you sell and buy another home in Florida, portability lets you carry some of that accumulated savings to the new property.
Corporate Income Tax
Corporations doing business in Florida owe a 5.5% tax on net income.7The Florida Statutes. Florida Statutes 220.11 – Tax Imposed It applies to Florida corporations and to out-of-state corporations earning income from Florida sources. The first $50,000 of net income is exempt, so only income above that threshold is taxed.8Florida Senate. Florida Statutes 220.14 – Exemption
Sole proprietorships, general partnerships, and most S-corporations do not pay this tax. Their income passes through to the owners, who then benefit from Florida’s lack of a personal income tax. That combination is one reason small businesses often base themselves in the state.
Taxes When You Buy or Sell Property
Recording a deed in Florida triggers a documentary stamp tax. In every county except Miami-Dade, the rate is $0.70 per $100 of the sale price, so a $300,000 home carries a $2,100 stamp tax. Miami-Dade uses a base rate of $0.60 per $100 plus a $0.45-per-$100 surtax on most transfers, though the surtax does not apply to deeds transferring a single-family home.9Florida Dept. of Revenue. Documentary Stamp Tax The county clerk collects the tax when the deed is recorded.
Mortgages and other loan documents secured by Florida real estate carry a separate documentary stamp at $0.35 per $100 of the loan amount.9Florida Dept. of Revenue. Documentary Stamp Tax A $250,000 mortgage produces $875 in stamps.
Most new mortgages also owe a one-time nonrecurring intangible tax of 2 mills, or $0.002 per dollar of the loan.10Florida Dept. of Revenue. Nonrecurring Intangible Tax That adds another $500 on a $250,000 mortgage, collected at closing.
Business-Only Taxes
Two more Florida taxes fall on businesses rather than individuals. If you are a wage earner, neither one shows up on your paycheck or your personal tax bill.
Businesses that own equipment, furniture, fixtures, or other tangible personal property file an annual return with the county property appraiser by April 1. The first $25,000 of assessed value per return is exempt.11The Florida Statutes. Florida Statutes 196.183 – Exemption for Tangible Personal Property Missing the filing entirely brings a 25% penalty on the tax owed.12Florida Dept. of Revenue. Taxpayers – Tangible Personal Property Tax
Florida’s reemployment tax, the state’s unemployment insurance, is paid entirely by employers. Nothing comes out of employee wages. New employers pay 2.7% on the first $7,000 of each worker’s annual wages for their first 10 calendar quarters.13The Florida Statutes. Florida Statutes 443.131 – Contributions After that, the rate adjusts based on how many former employees have drawn benefits. For 2026, rates range from 0.1% ($7 per employee) up to 5.4% ($378 per employee).14Florida Dept. of Revenue. Reemployment Tax Rate Information