Florida State Tax: How It Works, Who Pays in 2025

These messages indicate the recipient is due a tax refund and asks them to click a link to confirm their banking information to receive the refund. The Department of Revenue does not send text messages about tax refunds. Many of the tax changes in the federal reconciliation act flow through to state tax codes—automatically in some states, and subject to an update in states’ Internal Revenue Code conformity date in others. Many, or all, of the products featured on this page are from our advertising partners who compensate us when you take certain actions on our website or click to take an action on their website. If you earn $90,000 annually in Florida, USA, your taxes will amount to $19,453, leaving you with a net pay of $70,547 per year, or $5,879 per month. If you earn $70,000 annually in Florida, USA, your taxes will amount to $13,523, leaving you with a net pay of $56,477 per year, or $4,706 per month.

State income taxes

DeSantis has kept up a steady drumbeat the last several months about the unfairness of property taxes and has stated his desire to eliminate them altogether, at least for those with homestead exemptions. Thanks largely to Florida’s nonexistent income tax, the state ranks second in the nation in terms of securing a solid return on tax dollars. While the minimal state taxes mean Florida doesn’t have the resources to offer many government services, its low tax burden ensures state taxpayers have a little extra money in their pockets come tax season. Currently, Florida homeowners can get a property tax break of up to $50,000 of their home’s assessed value. By tying the homestead exemption to the nation’s Consumer Price Index (CPI), if inflation goes up annually — so does your exemption.

a. Sales Tax

Our calculator incorporates all local tax rates and available exemptions. While Florida does not impose a personal income tax, it does have a corporate income tax. This tax applies to corporations doing business in Florida and is currently set at 5.5% on net income. Additionally, businesses may be subject to various local taxes, such as local business taxes and industry-specific fees.

Taxes on Remote Sales

If you live in a state Debt to Asset Ratio with an income tax but earned money in a state without one, like Florida, you still need to include that income on your home state tax return. For example, if you’re a California resident who worked in Florida in 2024, you must report your Florida earnings on your California (and federal) return. The property tax funds local governments, which have expressed concerns about their ability to provide critical services if cuts are made.

Florida Department of Revenue Test Header

• Florida imposes a state sales tax of 6% on most goods and services.
• The new law removes that threshold, making all sales of those precious metals exempt from sales taxes.
• Clients who are able to stay with the program and get all their debt settled realize approximate savings of 45% before fees, or 20% including our fees, over 12 to 48 months.
• The Florida House Select Committee on Property Taxes has been tasked with reviewing property tax relief proposals for the upcoming year.
• Like every other state, your earnings in Florida are subject to federal taxes.

Learn everything you need to know about Florida’s state taxes in our comprehensive guide. Investguiding is a website that shares useful knowledge and insights for everyone about finance, investing, insurance, wealth, loans, mortgages, and credit. You can report scams to the Federal Trade Commission, the Florida Office of the Attorney General, or the Florida Department of Agriculture and Consumer Services.

Current Interest Rates

The resolutions also carry no immediate implementing legislation; lawmakers would decide later how to structure the details based on what voters approve. DeSantis has loudly called in recent months for florida income tax rate the homestead property tax to be eliminated. The Florida House has unveiled a list of proposals aimed at reducing the state’s property tax. If you’re looking to pass on that beach house in Miami to your heirs, you can rest easy. A financial advisor can help you understand how taxes fit into your overall financial goals. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you.

Import File Specifications for Taxpayers

Only eight states are entirely free of a state income tax, and Florida happens to be one of them. Even better, Floridians have an even smaller state tax burden than residents of some other income-tax-free states. Profit unearned revenue and prosper with the best of Kiplinger’s advice on investing, taxes, retirement, personal finance and much more. You won’t pay state tax on wages, retirement income or investment income. Florida property rates are relatively low compared to the national average, and a Florida tax relief bill passed last year allows Floridians to enjoy many items tax-free.

Understanding how these taxes work can help residents and businesses effectively navigate their financial responsibilities. This article explores the key components of Florida’s tax system, including sales tax, property tax, and various local taxes. Because Florida residents don’t need to file an individual income tax return, there is no personal exemption or standard deduction.

• If you want to reduce your day-to-day spending, consider buying fewer items that are subject to an excise tax and shop for essential items during tax holidays.
• Governor Ron DeSantis has been one of the loudest voices pressing for reductions, even suggesting a special session if lawmakers can’t reach agreement.
• Here are the combined state and local sales tax rates for each of Florida’s counties.
• New homeowners who haven’t already should apply for Florida’s homestead exemption program.
• Whether you’re planning to retire to the Sunshine State or making a career move that could take you there, you should now have a clear sense of whether Florida suits you from a tax perspective.

Aside from corporations, businesses and owners of farms and rental properties may also be required to file a Florida state income tax return. Professional tax planning and tax return assistance can help you optimize your state income tax return and make sure you keep key business tax return documents for the required minimum timeframes. This website is supported by Grant Number 2501FLSCSS from the Office of Child Support Services within the Administration for Children and Families, a division of the U.S. Local governments in Florida also depend on property taxes for revenue.