Taxes in Florida: Features and Advantages

Main Taxes in Florida

Income Tax

The key feature of Florida is the absence of state income tax, which is one of the advantages of living and doing business in the state.

Sales Tax

In Florida, the base sales tax rate is 6%. In some counties, a local surtax of 0.5% to 2.5% is added. The tax applies to many goods and services, such as the sale of goods, commercial property rentals, and certain services.

Determining the taxable base and applicable rate can be complex and requires professional expertise.

We provide services for obtaining a Sales Tax Certificate, preparing and filing a Sales and Use Tax Return, and advising business owners on registration, calculation, and reporting.

Property Tax

The property tax rate varies by county and averages about 0.83% of the assessed property value.

Corporate Income Tax

Applies only to C corporations and not to S corporations. The tax rate is 5.5% of taxable income.

Annual Reporting

For LLCs and Corporations, filing an Annual Report is mandatory by May 1. If you encounter difficulties, we provide services for preparing and filing this report.

Excise Taxes

Florida levies excise taxes on goods such as alcohol, tobacco, and fuel. These vary depending on the category of goods.

Favorable Tax Conditions in Florida

• No income tax — reduces the tax burden and makes the state attractive for new residents.
• — make home ownership more affordable.
• Attractive business conditions — beneficial for small and medium-sized businesses (S corp, LLC, sole proprietors).
• No personal property tax for individuals — reduces the financial burden for owners of cars, boats, airplanes, and other assets.

Comparison with Other States

• No personal income tax, unlike most states.
• No franchise tax, unlike Texas, Delaware, or California.
• Relatively low property tax rate.
• Florida is the only state that levies sales tax on commercial rentals (4.5% + local surtax).
• Tangible personal property tax (business assets). If assets exceed $25,000, filing and payment are mandatory.