Disclaimer: Calculations are estimates based on tax rates as of Dec. 2021 and data from the Tax Foundation. These rates are subject to change. Check the IRS website for the latest information about income taxes and your state tax website for state-specific information. Our calculator doesn’t consider both 401k and IRA deductions due to the tax law limitations. Please note, the amount of your IRA deductions may vary. You should speak with a tax professional to determine your tax situation.
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What You Need To Know About Florida State Taxes
Florida is famous for its beaches, gators, retirees—and for not imposing an individual income tax. Also, the state itself does not assess a property tax, although local Floridian governments may administer a property tax.
As a result, Florida had the eighth-lowest tax burden (defined as the state and local taxes as resident pays divided by the state’s share of net national product) in the US in 2019, according to the Tax Foundation’s most recent analysis.
Florida is one of nine states that doesn’t levy an income tax—the other eight are:
- New Hampshire
- South Dakota
Retirees flock to Florida for more than its great year-round weather—they don’t pay taxes on Social Security, pensions and other retirement income, and Florida doesn’t have an estate or inheritance tax.
So how does Florida pay for things like roads and schools? It generates revenue from sales and use tax, and corporate income taxes.
Related: Florida Income Tax Calculator
Sales Tax and Sales Tax Rates
Florida charges a sale and use tax of 6% on the most taxable sales unless the sale is exempt. Some items that are not subject to sales and use tax are the most groceries and medicine.
While the state typically charges a 6% sales and use tax, the following transactions are taxed at different rates:
Corporation Income Tax
The state of Florida imposes a corporation tax on all corporations business or earning income within the state at the following tax rates:
Florida tax corporations by using the company’s federal taxable income and allowing for certain tax incentives, such as salaries paid to employees and credits for making investments in Florida.
Property Tax and Exemptions
While Florida does not assess a property tax on real estate, state localities may assess property taxes. Also, it provides a property exemption, which allows property owners to qualify for a reduction in their property tax liability to homeowners, disabled and senior citizens, veterans and active-duty military service members, disabled first responders, and other properties.
Inheritance and Estate Tax and Inheritance and Estate Tax Exemption
Florida does not have an inheritance or estate tax.