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Small Business Tax

What Taxes Do Florida Residents Pay?

No income, estate, or inheritance tax — and the sales, property, and transaction taxes that remain

Reviewed by the Fairlight Accounting cross-border tax team — U.S. & Canadian Tax Desks

Florida residents pay no state personal income tax, no estate tax, and no inheritance tax. Florida raises revenue instead through a 6 percent state sales tax plus county surtaxes, local property taxes, documentary stamp taxes on real estate transfers and loans, communications and fuel taxes, and a corporate income tax on C corporations. Federal income tax applies as anywhere else.

On this page
  1. The Florida tax picture
  2. What it means for movers
  3. Frequently asked questions
  4. Related guides
  5. Official sources
  6. Next step

The Florida tax picture

TaxWho pays
Personal income taxNone
Estate and inheritance taxNone (the Florida estate tax guide)
Sales and use tax6 percent state plus a county surtax of up to 2 percent (2026; Citrus and Collier levy none) on most goods and some services — commercial rent untaxed since October 1, 2025 (the Florida service sales tax guide)
Property taxLocal millage on real property; homestead exemption and Save Our Homes cap for permanent residents (the homestead guide); tangible personal property for businesses
Documentary stamp taxDeeds (0.70 percent; Miami-Dade differs) and notes (0.35 percent) — the doc stamp guide
Corporate income taxC corporations (5.5 percent above the US$50,000 exemption — the Florida corporate tax guide)
Communications services tax, fuel taxes, tourist development taxesOn those transactions
Reemployment taxEmployers

What it means for movers

The saving from moving is largest for high earners and people with large investment income, business income, or a liquidity event — the income tax disappears. Property taxes and insurance are higher in many Florida areas than movers expect, and non-homestead property (a second home or rental) is taxed without the homestead cap.

Frequently asked questions

Does Florida have a state income tax?

No — Florida has no personal income tax.

What is the sales tax in Florida?

6 percent state plus a county surtax of up to 2 percent — for 2026, combined rates run from 6 percent (Citrus and Collier, no surtax) to 8 percent (Hamilton).

Do Florida retirees pay tax on pensions?

Not to Florida — only federal tax.

Are property taxes high in Florida?

They vary by county; permanent residents get the homestead exemption (US$25,000 plus an additional US$26,411 for 2026) and the Save Our Homes cap, which limits annual assessment increases to 3 percent or the CPI change, whichever is lower.

Official sources

The Florida Department of Revenue explains: “Florida does not impose personal income tax, inheritance tax, gift taxes, or tax on intangible personal property.” — Florida Department of Revenue, Tax Information for New Residents (GT-800025), https://floridarevenue.com/Forms_library/current/brochure/gt800025.pdf

Next step

Fairlight Accounting is a cross-border accounting and tax practice with a U.S. Tax Desk and a Canadian Tax Desk. Our U.S. Tax Desk handles federal returns for new Florida residents and Florida business tax compliance. See pricing or book a call.

Cross-border taxes, handled in one place

U.S. and Canadian filings prepared together by our U.S. and Canadian Tax Desks.

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Have a question about Small Business Tax?

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