Florida does not have a state income tax
Florida is one of nine states with no state income tax on wages, salaries, or other earned income. You will not owe Florida state income tax on money you earn from a job, self-employment, retirement accounts, or most other sources. This applies whether you work in Florida or live there — the rule is based on residency, not where you work.
This does not mean Florida has no taxes at all. The state funds itself through sales tax, property tax, corporate tax, and other levies. But for individual income — the money that comes into your household — Florida does not tax it at the state level.
If you work in Florida but live in another state, you owe income tax to your home state, not to Florida. If you live in Florida but work in a state with income tax, you owe tax to that state, not to Florida. The rule follows your residency.
Key Takeaways
- Florida residents pay no state income tax on wages, salaries, retirement income, or investment gains — only the federal government taxes these in Florida.
- You still owe federal income tax to the IRS, and you may owe sales tax and property tax to Florida and your county.
- If you moved to Florida from another state, you may still owe income tax to your former state for the part of the year you lived there.
- Florida taxes corporate income and has a sales tax of 6 percent at the state level, plus additional local sales tax that varies by county.
What taxes Florida residents actually pay
Without state income tax, Florida relies on other revenue sources. The state sales tax is 6 percent, and most counties add a local sales tax on top of that, bringing the total to between 6 and 7.5 percent depending on where you shop. You pay this tax when you buy goods and some services.
Property tax in Florida is based on the assessed value of real estate you own. The rate varies by county but typically ranges from 0.7 to 1.1 percent of the property's value per year. If you own a home, you receive a property tax bill from your county annually.
Corporations doing business in Florida pay corporate income tax. Businesses also pay sales tax on goods they purchase for resale, and they may owe unemployment insurance taxes if they have employees.
You still owe federal income tax to the IRS on all income sources. Federal tax is separate from state tax and applies to everyone in the United States regardless of where they live.
Moving to Florida and your tax obligations
If you moved to Florida during the year, you may owe income tax to your previous state for the months you lived there. Most states tax you as a resident for the entire year if you lived there on January 1, or they tax you from the date you moved in until December 31. A few states use a different rule.
When you establish Florida residency, you should notify your former state's tax authority. Some states require you to file a part-year resident return showing income earned while you lived there. The IRS allows you to claim a credit for taxes paid to another state, so you do not pay twice on the same income.
If you receive a pension or retirement income from your former state, that state may still tax it even after you move to Florida. Some states tax pensions only if you earned them while working there; others tax pensions from anyone who was once a resident. Check your former state's rules or contact its tax department.
Federal taxes still apply in Florida
Florida's lack of state income tax does not reduce your federal tax burden. You file a federal return with the IRS and pay federal income tax on all income sources — wages, self-employment, investment gains, retirement withdrawals, and others. The federal tax rate depends on your income level and filing status.
You may also owe federal self-employment tax if you are self-employed. This tax funds Social Security and Medicare and is calculated separately from income tax. The rate is 15.3 percent of net self-employment income, though you can deduct half of it.
If you receive Social Security benefits, some of that income may be taxable at the federal level depending on your total income. Florida does not tax Social Security, but the federal government may.
Special situations: Military, remote work, and business income
Military members stationed in Florida are generally not considered Florida residents for tax purposes, even if they live there. They typically remain residents of their home state and file taxes there. This rule protects service members from owing taxes to multiple states.
If you work remotely for a company in another state but live in Florida, you owe federal tax and Florida has no state income tax to collect. Your employer's state generally cannot tax you either, since you do not work there. However, if you travel to that state for work, the rules become more complex — consult a tax professional if this applies to you.
Self-employed people and business owners in Florida pay federal self-employment tax and federal income tax on business profits. They do not pay Florida state income tax on business income. They do pay Florida sales tax on goods they sell and property tax on business property they own.
Frequently Asked Questions
Do I have to file a Florida state income tax return?
No. Florida does not require state income tax returns because there is no state income tax. You file only a federal return with the IRS. Some people file Florida returns for other reasons — to claim a homestead property tax exemption or to report business income — but an income tax return is not required.
If I work in Georgia but live in Florida, who do I pay income tax to?
You owe income tax to Georgia, the state where you work. Georgia taxes income earned within its borders. You do not owe Florida state income tax because you are a Florida resident and Florida has no income tax. You owe federal tax to the IRS regardless.
Does Florida tax retirement income or Social Security?
Florida does not tax Social Security benefits or most retirement income, including distributions from IRAs, 401(k)s, and pensions. However, the federal government may tax some of this income depending on your total income level. Check your federal tax situation with the IRS or a tax professional.
What if I just moved to Florida — do I owe my old state income tax?
You may owe your former state income tax for the part of the year you lived there. Most states tax residents for the full year if you lived there on January 1, or from your move-in date through December 31. File a part-year resident return with your former state showing only the income you earned while living there.
Are there any Florida state taxes I do need to pay?
Yes. You pay Florida sales tax (6 percent plus local tax) when you buy goods and some services. If you own property, you pay property tax to your county. If you own a business, you may owe corporate tax, sales tax on inventory, and other business-related taxes. Federal income tax applies to everyone.