Florida doesn't have a personal income tax, nor does it have an estate tax or an inheritance tax. It does, however, impose a variety of sales and property taxes and some are pretty significant.
The state's overall tax burden has nonetheless been ranked among the nation's lowest for decades according to the Tax Foundation, a non-profit and non-partisan educational and research organization.
- Increases in property value are limited to 3% of the previous year's assessment or the Consumer Price Index (CPI), whichever is less.
- Property tax exemptions include a homestead exemption of up to $50,000 and those available to older adults over age 65 and for the disabled.
- Florida's corporate income tax rate was increased back to 5.5% as of Jan. 1, 2022.
- Florida does not have personal income, estate, or inheritance taxes.
Overview of Key Florida Taxes
|Type of Tax||Percentage/Rate|
|Cigarette tax:||$1.33 per pack|
|Corporate tax rate||5.5%|
|Gas tax||42.26 cents per gallon|
|Personal income tax||None|
|Property tax||Cannot increase by more than 3% of the previous year’s assessment or the Consumer Price Index, whichever is less|
|Sales tax rate||6%|
|Sales tax rate for electricity||6.95%|
|Stamp tax on documents that transfer interest in Florida real estate||70 cents per $100 of value|
The Florida Property Tax
The Florida constitution reserves all revenue from property taxes for local governments—the state itself doesn't use any of this money. Property taxes are based on the "just value" or market value of properties as they're assessed by a local appraiser as of Jan. 1 of each year.
Increases in value are limited to 3% of the previous year's assessment or the Consumer Price Index (CPI), whichever is less. This limitation is known as the "Save Our Homes" cap.
Taxes are based on millage rates set by local governments, with 10 mills being equal to 1%. The millage rate is multiplied by the value of the property to determine the dollar amount of the tax. County, city, and school districts are permitted to levy taxes at up to 10 mills each.
Special districts, such as water management, can levy additional taxes, usually at under 2 mills.
Property Tax Exemptions
Florida offers several property tax exemptions that can help reduce your tax bill if you qualify for them. They include a homestead exemption of up to $50,000. Exemptions are also available for older adults over age 65 and for the disabled.
Veterans can qualify for four different types of exemptions, and widows and widowers are entitled to a $500 exemption, provided that they haven't remarried and weren't divorced at the time of their ex-spouse's death. Homeowners who are legally blind are also entitled to a $500 exemption.
Personal Income Tax
Florida is one of only seven states that have no personal income tax. The state tax on intangible assets, such as stocks, bonds, and mutual funds, was repealed in 2007, so this type of property is no longer taxed, either.
State Corporate Taxes
The Florida corporate income/franchise tax rate was previously reduced from 4.458% to 3.535% for taxable years beginning on or after January 1, 2021, but before January 1, 2022. However, the corporate income tax rate has since increased back to 5.5% (where it was prior to 2019) for tax years beginning on or after Jan. 1, 2022.
Estate and Inheritance Taxes
There are no "death taxes", otherwise known as inheritance taxes, in Florida on the value of estates or inheritances. The Florida estate tax was repealed effective Dec. 31, 2004, and it cannot be reinstated. The state's constitution prohibits it.
Sales and Other State Taxes
Florida sales taxes apply to several types of purchases:
- A stamp tax of 70 cents per $100 of value is assessed on documents that transfer interest in Florida real estate, such as warranty deeds and quitclaim deeds.
- A 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 permitted to add additional fees.
- Florida charges a state sales tax of 6%. Food, prescription drugs, and non-prescription drugs are exempt from taxation, and amusement machine receipts are taxed at only 4%. Electricity comes with a tax of 6.95%, and counties can charge their own additional sales taxes, bringing the tax rate up to as much as 9.5% in some areas.
- The Florida gas tax is actually exorbitant, offsetting some of the state's other tax breaks—at least for those who drive a lot. It's 42.26 cents a gallon as of 2021, and this figure excludes the federal excise tax. Florida ranks eighth for the highest gas tax in the country.
- The state charges a 133.9 cent tax on each pack of cigarettes. There's also a surcharge for other tobacco products, excluding cigars, that's equal to 85% of the wholesale price. Still, the state ranks 31st overall for this tax rate, according to the Federation of Tax Administrators.
- Hotel tax rates vary by county, ranging from 2% to 6%. This is in addition to the state sales tax rate of 6%. These taxes are known as the Tourist Development Tax and are charged on hotel rooms, but rooms that are leased for more than six months are exempt.
On the bright side, you can buy a flag in Florida—either the U.S. flag or that of the state—without paying any tax at all.
State of Florida. "The 2020 Florida Statutes."
City of Jacksonville. "Save Our Homes - Assessment Cap On Homesteaded Property."
Florida Department of Revenue. "Property Tax Exemptions and Additional Benefits."
Florida Department of Revenue. "Original Application for Homestead and Related Tax Exemptions," Page 2.
Florida Department of Revenue. "Tax Information Publication No: 21C01-02: Florida Corporate Income Tax." Page 1.
Florida Department of Revenue. "Estate Tax."
Florida Department of Revenue. "Documentary Stamp Tax." Page 2,
Florida Department of Revenue. "Florida Sales and Use Tax."
Tax Foundation. "How High Are Gas Taxes in Your State?"
Campaign for Tobacco-Free Kids. "State Excise Tax Rates for Non-Cigarette Tobacco Products."
Florida Department of Revenue. "Local Option Transient Rental Tax Rates."