Florida Tax and CPA Services: State, County and City Taxes

Florida does not tax personal income, which makes it a popular destination for retirees, remote workers and business owners. That does not mean Florida has no taxes. The state charges a 6 percent sales tax with county surtaxes on top, a corporate income tax, a reemployment tax on payroll, and property taxes that depend on homestead status. Moving to Florida also raises a separate problem: proving to a former state that you really left. We serve Florida clients remotely from our Naperville, Illinois office.

Individual income: none, but domicile matters

Florida does not impose a personal income tax on wages, interest, dividends or capital gains. If you are a Florida resident, you generally file only a federal return. The practical issue arises for people who move to Florida from a state with an income tax. A former state may continue to treat you as a resident, and tax your worldwide income, if it believes you kept your domicile there. Evidence usually includes where you spend your days, where you own a home, where your driver's license, voter registration, bank accounts and doctors are, and where your family lives. Part-year resident returns in the old state are common in the year of the move. A snowbird who splits time between states faces the same question every year. See our multi-state tax service and our page for seniors and retirees.

Wages earned from work physically performed in another state can still be taxable there even if you live in Florida, so remote workers and consultants should check the state where the work is done.

Business taxes

The Florida corporate income and franchise tax is imposed on corporations for the privilege of doing business, deriving income or existing in Florida. Entities taxed federally as corporations are covered, including an LLC that elects corporate treatment. A corporation starts with federal income, makes Florida additions and subtractions, and apportions the result using property, payroll and sales. The rate shown on the Department of Revenue's page is 5.5 percent. A late return carries a 10 percent penalty of any unpaid tax for each month, up to 50 percent of the unpaid tax. A single-member LLC that is disregarded for federal tax purposes does not file a separate Florida return unless a corporation owns it. An LLC taxed as a partnership files Form F-1065 if one or more owners is a corporation.

Entities also file an annual report with the Division of Corporations. For 2026, the deadline before the $400 late fee was May 1, which applies to profit corporations, limited liability companies and limited partnerships. Missing it is expensive, so many owners calendar it.

Sales and use tax

The state sales tax rate is 6 percent. Counties can add a discretionary sales surtax, which applies to a taxable item or service delivered into the county, with the surtax limited to the first $5,000 of certain transactions. Motor vehicles and mobile homes use the buyer's home address to set the surtax. Rental of short-term accommodations (six months or less) can also face local tourist development or transient rental taxes, collected by the county in many cases. Some items have special state rates, such as 3 percent for retail sales of new mobile homes and 6.95 percent on electricity.

An out-of-state business with total sales into Florida over $100,000 in the prior calendar year, with any number of transactions, must register to collect. Marketplace providers have separate duties. Residents who buy tax-free for resale and then use the item, or who bring in items bought elsewhere without tax, owe use tax. See sales tax nexus and our sales tax service.

Payroll in Florida

• Reemployment tax: Florida's name for unemployment tax. Only the first $7,000 of wages paid to each employee in a calendar year is taxable. The Department of Revenue has administered the tax since 2000, registers employers, collects the tax and wage reports, and assigns rates, while the Department of Commerce handles benefit claims. See state unemployment insurance.
• E-Verify: Florida private employers with 25 or more employees and all public agencies must use E-Verify to confirm employment eligibility of new hires, and Florida law requires verifying each new employee within three business days after they start. See Form I-9 and E-Verify.
• State income tax withholding: none, since there is no personal income tax. Federal withholding and payroll taxes still apply.

Counties, cities and property tax

Florida's 67 counties administer property tax through county property appraisers, and the Department of Revenue supervises the process. Homeowners who make a property their permanent residence may qualify for a homestead exemption that reduces taxable value and for the Save Our Homes assessment limitation, which restricts annual increases in assessed value, plus portability to carry the benefit to a new home. Applications go to the property appraiser in the county where the property sits, in places such as Miami-Dade, Broward, Orange and Hillsborough counties. Additional exemptions exist for people 65 or older, active-duty military and veterans, and surviving spouses of first responders. Businesses also file a tangible personal property return for equipment and furnishings, and counties and cities may set separate local business tax receipts and licenses.

How we can help

We prepare federal returns for Florida residents, handle part-year and nonresident returns for people leaving another state, review domicile facts, set up Florida corporate and reemployment tax accounts, and help sellers handle surtax and nexus questions. If you receive a notice from the Florida Department of Revenue, see state tax notices and representation. Contact us to start; this page is general information.

Frequently asked questions

General information only, not tax, legal or accounting advice for your situation. Rules, limits and deadlines change; confirm the current rules with the official source or a qualified professional before you act. Reading this page does not create a professional relationship with CPA Tax Payroll and Accounting Corp.