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Florida State Tax Profile

Details on Florida state taxes


Updated April 13, 2014

According to the Tax Foundation, Florida's state and local tax burden has consistently ranked among the nation's lowest for the past three decades.  Florida does not have a personal income tax, but does have a sales tax and property tax.

Florida Property Tax

The Florida constitution reserves all revenue from property taxes for local governments.  The state government does not receive any revenue from property taxes.  Property taxes are based on the "just value" (or market value) of property which is assessed by a local appraiser on January 1st of each year.  If the value of your home increases, your assessed value increase is limited to 3 percent of last year's assessment or the Consumer Price Index (CPI), whichever is less.  This limitation is known as the Save Our Homes Cap.

Property tax bills are based on the millage rate, which is set by local governments.  The millage rate (the tax rate) is multiplied by the value of the property to determine the dollar amount of property tax.  County, city, and school districts are allowed to levy taxes at up to 10 mills each (10 mills is equal to 1%).  Special districts, such as water management, can levy additional taxes, usually at under 2 mills.

Property Tax Exemptions

Florida has several property tax exemptions that can help reduce your tax bill if you qualify.  These exemptions include a homestead exemption of up to $50,000, exemptions for senior citizens (over 65), veterans, and the disabled.

Income Tax

Florida has no personal income tax.  The state tax on intangible assets (stocks, bonds, mutual funds) was repealed in 2007 and those items are no longer taxed.  Florida does have a 5.5% corporate income tax.

Other State Taxes

Document Stamp Tax: A tax of 70 cents per $100 of value is assessed on documents that transfer interest in Florida real estate, such as warranty deeds and quit claim deeds.  Tax is also levied on notes, bonds, mortgages, liens, and other written obligations to pay that are filed or recorded in Florida.  The rate for these types of contracts is 35 cents per $100 of value.  Counties are allowed to add additional fees.

Sales tax: 6%.  Food, prescription drugs, and non-prescription drugs are exempt.  Counties charge their own additional sales taxes, which can bring the sales tax rate up to 9.5% in some areas.

Gas tax: 34.4 cents/gallon for unleaded and 29.6 cents/gallon for diesel

Cigarette tax: $1.34 on each pack of 20 cigarettes.  There is also a surcharge for other tobacco products (excluding cigars) equal to 60% of the wholesale price.

Hotel taxes:  Rates vary by county, ranging from 2% to 6%.  These taxes are known as the Tourist Development Tax, and are charged on hotel rooms in addition to the regular sales tax rate.

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