Florida Personal Income Tax Laws
Personal income tax is a government tax on individuals that varies based on their taxable income. Generally, taxable income is determined by taking a person’s total income and applying deductions. Depending on the circumstances, credits may also be available to individuals. Many states levy a personal income tax in addition to the federal personal income taxes collected by the Internal Revenue Service. Seven states, however, including Florida, do not collect personal income tax. This article provides a basic overview of taxes in Florida.
Types of Taxes in Florida
Unlike many other states, Florida also does not impose inheritance taxes, gift taxes, or taxes on intangible personal property. Since states require a steady flow of revenue to pay for public goods such as education and infrastructure, Florida makes up for the lack of income tax through relatively high property (levied at the local, not state, level), sales, and corporate taxes. Florida imposes the following taxes within the state:
- Sales Tax: The state sales tax is 6 percent. It is calculated for each retail sale and admission charge and certain other services at the time of purchase or use. Counties may also impose a sales surtax on top of the six percent tax. Those county taxes can range from a quarter percent to two and a half percent.
- Use Tax: A use tax is a tax on property that is bought out of state and brought into Florida within six months of purchase. The use tax is also assessed at six percent of the purchase price. Certain property is exempt from this tax, however.
- Property Tax: If you own property in Florida, the county assessor will appraise the value of your property annually to determine the amount of property tax you owe. This tax is collected each year by the county tax collector unless exceptions apply.
- Corporate Tax: Most corporations, banks, and other business must pay a state corporate tax. The corporate tax is similar to a personal income tax for individuals and is based on federal taxable income after making applicable adjustments.
Certain counties charge additional taxes and fees, which may include the following:
- Convention development tax;
- Local option tourist tax,
- Fuel tax;
- Communications services tax;
- Gross Receipts tax;
- Lead-acid battery fee;
- New tire fee; and
- Rental car surcharges.
|Code Section||Florida Code, Chapter 220, et seq.|
|Who is Required to File||Individual income is not taxed in Florida. Corporations and other business organizations do pay income taxes.
|Federal Income Tax Deductible||No|
|Federal Income Used as Basis||N/A|
Note: State laws are always subject to change through the passage of new legislation, rulings in the higher courts (including federal decisions), ballot initiatives, and other means. While we strive to provide the most current information available, please consult an attorney or conduct your own legal research to verify the state law(s) you are researching.
Related Resources for Tax Laws:
- Federal Income Tax Laws
- Florida Statutes
- Florida Tax Information for New Residents
- Florida Legal Research
- Tax Law Center
Get Professional Legal Help With Your Florida Taxes
Florida's tax laws are often changing and ever-confusing for the average consumer. There are many variables that determine the amount of tax Floridians pay each year, although the state does not collect taxes on personal income. You likely have questions about the law. An experienced Florida tax attorney can answer those questions about your tax rights or responsibilities.
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