Florida Tax Calculator: Property & Sales Tax

Florida Tax Calculator: Your Complete Guide to Sunshine State Taxes

Florida is renowned not just for its beaches and sunshine, but for being one of the most tax-friendly states in the US. The headline benefit is simple: Florida has no state income tax. This means the money you earn from wages, salaries, and even retirement income stays in your pocket, free from state-level levies.

However, "tax-free" doesn't mean "cost-free." The state funds its operations primarily through sales tax and property tax. Understanding these local taxes is crucial for residents, business owners, and anyone planning a move to Florida. Our Florida Tax Calculator helps you estimate these costs by breaking down sales tax rates by county and providing property tax estimates based on local millage rates.

1. The Big Perk: No State Income Tax

Florida is one of only nine states with no income tax. This is a significant financial advantage compared to states like California or New York, where top marginal rates can exceed 10-13%. For high earners, this alone can result in savings of tens or even hundreds of thousands of dollars annually.

While you still owe federal income tax to the IRS, your state tax return in Florida is non-existent for personal income. This simplifies your financial life significantly, as you have one less return to file each April.

2. Florida Sales Tax: State + County Surtax

Since Florida doesn't tax income, it relies heavily on consumption taxes. The state sales tax rate is 6%. However, most counties add a "Discretionary Sales Surtax" on top of this, ranging from 0.5% to 1.5%. This can bring the total sales tax rate to as high as 7.5% or even 8% in some specific jurisdictions.

How the Surtax Works

The discretionary surtax applies to the purchase of taxable items, but there is a unique cap: it only applies to the first $5,000 of the purchase price on a single item of tangible personal property. This is a distinct advantage for big-ticket purchases like vehicles or boats.

Example: If you buy a car for $30,000 in a county with a 1% surtax:

• State Tax (6%): Applies to the full $30,000 = $1,800.
• County Surtax (1%): Applies only to the first $5,000 = $50.
• Total Tax: $1,850 (Effective rate: 6.16%).

Our calculator handles the general sales tax calculation for everyday purchases where the $5,000 cap rarely applies. For large purchases, always remember that the extra county tax is capped.

Common combined rates include:

• Miami-Dade: 7.0% (6% State + 1% County)
• Orange County (Orlando): 6.5% (6% State + 0.5% County)
• Hillsborough (Tampa): 7.5% (6% State + 1.5% County)
• Broward: 7.0% (6% State + 1% County)
• Duval (Jacksonville): 7.5% (6% State + 1.5% County)

For a deeper dive into sales tax mechanics, check out our Sales Tax Calculator.

3. Florida Property Tax: Millage Rates & Exemptions

Property taxes are the primary revenue source for local governments in Florida. They are calculated based on the Assessed Value of your property and the local Millage Rate. Because there is no income tax, property taxes in Florida can be higher than the national average, although the Homestead Exemption helps to mitigate this.

What is a Millage Rate?

One "mill" represents $1 of tax for every $1,000 of assessed value. Millage rates vary by county, city, school board, and special districts (like water management or fire rescue). A typical total millage rate might be around 17-20 mills.

If your local millage rate is 18 mills and your taxable value is $200,000, your tax is:

The Homestead Exemption

This is the most important tax break for Florida homeowners. If you own property and make it your permanent residence, you are eligible for a Homestead Exemption of up to $50,000.

• First $25,000: Exempt from all property taxes.
• Next $25,000: Taxable.
• Third $25,000: Exempt from non-school taxes.

Additionally, the "Save Our Homes" cap limits the annual increase in the assessed value of homesteaded property to 3% or the Consumer Price Index (CPI), whichever is lower. This prevents your taxes from skyrocketing even if your home's market value doubles, a crucial protection in Florida's volatile real estate market.

4. Documentary Stamp Tax: The Real Estate Transfer Tax

When you buy or sell real estate in Florida, you will encounter the **Documentary Stamp Tax**, often referred to as "Doc Stamps." This is a tax on documents that transfer interest in Florida real property.

• Rate: In all counties except Miami-Dade, the rate is $0.70 per $100 of the sale price (or consideration).
• Miami-Dade Rate: $0.60 per $100 for single-family residences; plus a surtax of $0.45 per $100 for commercial/multi-family properties.
• Mortgages: There is also a tax on the promissory note (mortgage) at a rate of $0.35 per $100 of the amount financed, plus a non-recurring intangible tax of 0.2% on the mortgage amount.

These closing costs can add up significantly and should be factored into any home purchase or sale budget.

5. Estate and Inheritance Taxes

Another major draw for wealthy individuals and retirees is Florida's stance on death taxes.

Florida has NO Estate Tax and NO Inheritance Tax.

The federal estate tax exemption is quite high (over $13 million per individual in 2024), so for most people, there is zero tax liability upon death. Some states impose their own estate taxes with much lower thresholds (e.g., Massachusetts, Oregon), but Florida is not one of them. This allows for more efficient intergenerational wealth transfer.

6. Other Taxes to Know

Beyond sales and property taxes, there are a few other levies you might encounter. For a broader look at how property taxes work across the country, visit our Property Tax Calculator page.

Corporate Income Tax

While individuals pay no income tax, corporations doing business in Florida are subject to a 5.5% corporate income tax. However, limited liability companies (LLCs), sole proprietorships, and S-corporations are generally exempt from this, as their income passes through to the owners (who pay no state income tax). This makes Florida an excellent state for small business owners.

Tourist Development Tax

If you rent out property on platforms like Airbnb or VRBO for periods of 6 months or less, you must collect and remit the Tourist Development Tax (often 5-6%) in addition to sales tax. This is strictly enforced by local counties.

Intangible Personal Property Tax (Repealed)

Florida utilized to have a tax on intangible assets like stocks and bonds, but this was fully repealed in 2007. There is currently no recurring tax on the value of your investment portfolio.

7. How to Establish Florida Residency

If you are moving from a high-tax state to enjoy Florida's benefits, simply buying a house here isn't enough. You must prove to your former state that you have truly left. This process is often called "changing your domicile."

Steps to Official Florida Residency:

1. File a Declaration of Domicile: Visit the Clerk of Court in your Florida county and file specific paperwork stating this is your permanent home.
2. Obtain a Florida Driver's License: Do this immediately. Surrender your old license.
3. Register Your Vehicle: Get Florida plates and insurance.
4. Register to Vote: This is a key indicator of where you consider your primary community to be.
5. Update Financial Records: Change your address for all bank accounts, credit cards, and insurance policies.
6. Spending Time: ensure you spend more than 183 days a year in Florida if you are trying to avoid statutory residency in another state like NY or CA.

8. Florida's Business Climate

Florida is consistently ranked as one of the best states for business. It's not just about the taxes; it's about the regulatory environment.

• Pro-Business Government: The state government actively courts businesses with incentives and streamlined regulations.
• Infrastructure: With major international airports (Miami, Orlando, Tampa) and deep-water ports, logistics are a breeze.
• Labor Force: A growing population means a growing workforce, although costs are rising in major metros.

For entrepreneurs, the lack of personal income tax means that "pass-through" income from LLCs and S-Corps is tax-free at the state level, a massive advantage over creating a business in high-tax jurisdictions.

Frequently Asked Questions (FAQ)