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 live in Florida full-time, work there, or moved there recently.
You still owe federal income tax to the IRS. Federal tax is separate from state tax and applies everywhere in the United States. Florida's lack of a state income tax does not change what you owe the federal government.
Some types of income are taxed in Florida even though wages are not. Understanding which income is taxed and which is not helps you plan what to report and what to set aside.
Key Takeaways
- Florida has no state income tax on wages, salaries, self-employment income, or retirement distributions, so you will not file a Florida state income tax return.
- You still owe federal income tax to the IRS, which is separate from state tax and applies in every state.
- Florida does tax certain types of income including some investment gains, corporate profits, and specific business structures.
- If you moved to Florida from another state, you may owe income tax to your former state for the months you lived there before moving.
What income is not taxed in Florida
Wages and salaries from employment are not taxed by Florida. This includes regular paychecks, bonuses, commissions, and tips. Self-employment income from running your own business is also not taxed by the state, though you still owe federal self-employment tax and federal income tax.
Retirement income is not taxed by Florida. This includes distributions from 401(k) plans, IRAs, pensions, and annuities. Social Security benefits are not taxed by Florida either. Military retirement pay, federal employee pensions, and other government retirement income are also exempt from Florida state tax.
Interest and dividend income from most investments are not taxed by Florida. Capital gains — the profit you make when you sell an investment for more than you paid — are also not taxed by the state in most cases.
What income Florida does tax
Florida taxes corporate income. If you own a corporation, the business itself owes Florida corporate income tax on its profits. This is different from sole proprietorships and most partnerships, which do not owe Florida business income tax.
Florida taxes certain business structures including S-corporations and some LLCs depending on how they are organized. The rules vary by structure, so if you own a business, you should verify with the Florida Department of Revenue or a tax professional whether your specific business type owes state tax.
Florida also collects sales tax, property tax, and other taxes. These are separate from income tax. Sales tax is charged when you buy goods or services. Property tax is charged on real estate you own. These taxes exist in Florida even though income tax does not.
If you moved to Florida from another state
If you moved to Florida during the year, you may owe income tax to your former state for the months you lived there. Most states tax residents on all income earned while they lived in that state, regardless of where the income came from. Your former state does not care that you now live in Florida.
You will need to file a part-year resident return in your former state for the portion of the year you lived there. The return covers only the income you earned during those months. You will not file a Florida state income tax return because Florida has no income tax.
If you worked remotely for a company in another state while living in Florida, your former state may still claim tax on that income depending on that state's rules. Some states tax income earned by residents even if the work was done elsewhere. Check with your former state's tax authority or a tax professional about your specific situation.
Federal income tax still applies
The absence of Florida state income tax does not reduce what you owe the federal government. You must still file a federal income tax return with the IRS if your income exceeds the threshold for your filing status. In 2024, that threshold is roughly $14,000 for single filers and $28,000 for married couples filing jointly, though the exact amount changes each year.
Federal tax is calculated the same way in Florida as it is in every other state. Your filing status, income, deductions, and credits determine what you owe. The IRS does not adjust federal tax based on whether your state has income tax.
If you have self-employment income, you owe federal self-employment tax in addition to federal income tax. Self-employment tax funds Social Security and Medicare. Florida does not tax this income, but the federal government does.
How to file taxes if you live in Florida
You will file only a federal income tax return with the IRS. You will not file a state income tax return with Florida because the state does not have an income tax. You file your federal return the same way you would in any other state — either on paper or electronically through the IRS.
If you own a business structured as a corporation or certain other entities, you may need to file a Florida business tax return even though you do not file an income tax return. Check with the Florida Department of Revenue to determine whether your business structure requires a return.
If you earned income in another state or lived in another state part of the year, you may need to file returns in both Florida and that other state. Your former state will require a part-year resident return for the months you lived there.
Frequently Asked Questions
Do I need to file a Florida state tax return?
No. Florida has no state income tax, so there is no Florida state income tax return to file. You file only your federal return with the IRS. If you own a business structured as a corporation, you may need to file a separate Florida business tax return, but this is not an income tax return.
If I work in Florida but live in another state, do I owe Florida tax?
No. Florida has no income tax, so you do not owe Florida tax on wages earned there. You will owe income tax to the state where you live, which taxes residents on all income regardless of where it was earned. Check with your home state's tax authority about your filing requirements.
Does Florida tax retirement income or Social Security?
No. Florida does not tax distributions from retirement accounts, pensions, annuities, or Social Security benefits. These income sources are completely exempt from Florida state tax. You may still owe federal income tax on some retirement income depending on your total income and filing status.
What if I moved to Florida mid-year?
You will file a part-year resident return with your former state for the months you lived there. You will not file a Florida state return because Florida has no income tax. Your former state taxes you on income earned during the months you were a resident there.
Are there other taxes in Florida besides income tax?
Yes. Florida collects sales tax on purchases, property tax on real estate, and various other taxes. The lack of income tax does not mean Florida has no taxes — it means the state funds itself through sales tax, property tax, and business taxes instead of income tax.