Florida has no state income tax, but you still pay sales tax and property tax

Florida does not tax wages, salaries, or investment income at the state level. This is one of nine states in the country with no income tax. However, you will pay a sales tax when you buy most goods and services, and a property tax if you own real estate. The combination of these two taxes, plus any local additions, determines your actual tax burden in Florida.

The state sales tax rate is 6 percent. Most counties add their own local sales tax on top of this, ranging from 0.5 percent to 2 percent, so your total sales tax at checkout typically falls between 6 percent and 8 percent depending on where you shop. Property tax rates vary significantly by county and are based on the assessed value of your home or land.

Key Takeaways

  • Florida collects no state income tax on wages, retirement income, or investment gains, which is a major difference from most other states.
  • The state sales tax is 6 percent, but your county may add 0.5 to 2 percent more, making your total sales tax between 6 and 8 percent.
  • Property tax in Florida is calculated as a percentage of your home's assessed value and varies by county, typically ranging from 0.7 to 1.1 percent annually.
  • Some purchases are exempt from sales tax, including groceries, prescription medications, and medical equipment, though the rules can be specific.

How Florida's sales tax works at the register

When you buy something in Florida, the seller adds the state sales tax of 6 percent to your bill. Your county then adds its own local tax on top of that amount. For example, if you buy a $100 item in Miami-Dade County (which has a 1 percent local tax), you pay $107 total: $100 plus $6 state tax plus $1 local tax.

The local portion varies. Broward County adds 1 percent, Hillsborough County adds 1.5 percent, Orange County adds 0.5 percent, and Duval County adds 1.5 percent. You can find your county's rate by searching "[your county name] sales tax rate" or asking a cashier. The tax applies to most goods and many services, but not all purchases trigger it.

What is and is not taxed in Florida

Groceries are not subject to sales tax in Florida. This includes food you prepare at home: bread, milk, vegetables, meat, and canned goods all pass through tax-free. However, prepared food — restaurant meals, deli items, and hot foods — is taxed at the full rate.

Prescription medications and certain medical equipment are also exempt. Over-the-counter drugs like aspirin or cold medicine are taxed, but a prescription filled at a pharmacy is not. Eyeglasses and hearing aids have their own exemptions in some cases, though the rules are narrow.

Services are taxed differently than goods. A haircut is taxed. Car repairs are taxed. But services like accounting, legal advice, and medical care are generally not taxed. The line between a taxed service and an untaxed one can be unclear, so if you are unsure whether something will be taxed, ask before you buy.

How property tax is calculated in Florida

Property tax in Florida is based on the assessed value of your home or land, not the price you paid for it. Your county's property appraiser determines this value, usually by comparing your property to similar ones that sold recently. The appraiser reassesses every year, though the increase is capped at 3 percent annually unless the property changes hands.

Once the assessed value is set, your county applies a tax rate called the millage rate. This is expressed as dollars per $1,000 of assessed value. If your home is assessed at $300,000 and your county's millage rate is 8 mills (meaning $8 per $1,000), your annual property tax is $2,400. Millage rates vary widely by county and by what the property is used for — homesteads (primary residences) often pay less than investment properties.

Florida offers a homestead exemption that reduces the assessed value used to calculate tax for your primary residence. The exemption typically saves homeowners several hundred dollars per year, but you must file for it with your county property appraiser by March 1 of the year you want it to take effect.

Property tax rates by county

Property tax millage rates in Florida range from roughly 7 to 11 mills per $1,000 of assessed value, depending on the county and the type of property. Alachua County averages around 8.5 mills, Broward around 7.5 mills, Hillsborough around 8.5 mills, Miami-Dade around 7.5 mills, and Orange around 8 mills. These are approximate figures and change year to year based on county budgets.

To find your exact rate, search "[your county name] property appraiser" and look for the current year's millage rate on their website. You can also call your county property appraiser's office directly. Your property tax bill will show the millage rate applied to your specific property, so you can verify the calculation yourself.

Other taxes you may encounter in Florida

Florida has a corporate income tax of 5.5 percent if you own a business structured as a corporation. Sole proprietors and partnerships do not pay this tax at the state level, though they may owe federal self-employment tax.

Certain items carry special taxes. Gasoline is taxed at the state level (currently around 27 cents per gallon), and cigarettes and alcohol have excise taxes. Rental cars are subject to a 6 percent state tax plus local taxes that can push the total to 10 percent or higher.

If you rent property in Florida, you may owe sales tax on the rental income in some cases, though the rules are complex and depend on what you are renting. Short-term vacation rentals are often taxed differently than long-term residential leases. Check with your county tax collector if you are unsure.

Frequently Asked Questions

Do I have to pay Florida income tax if I move here from another state?

No. Florida has no state income tax regardless of where you moved from or how long you have lived there. If you were a resident of another state when you earned income, you may owe that state's income tax on those earnings, but Florida will not tax you on any income once you are a Florida resident.

What is the difference between homestead exemption and homestead tax deferral?

Homestead exemption reduces your assessed property value, lowering your annual tax bill immediately. Homestead tax deferral allows you to postpone paying property taxes if you are 65 or older and meet income limits, though you still owe the taxes eventually. They are separate programs with different rules and deadlines.

Are groceries really tax-free in Florida?

Yes, unprepared groceries are tax-free. This means raw vegetables, meat, bread, milk, and canned goods are not taxed. But if the store prepares the food — a rotisserie chicken, deli sandwich, or hot pizza — it is taxed. The distinction is whether the food is ready to eat when you buy it.

How do I find out what my property tax rate is?

Search "[your county name] property appraiser" online and look for the current millage rate, or call your county property appraiser's office directly. Your annual property tax bill also shows the rate applied to your property. You can use this rate and your assessed value to calculate what you owe.

Can I deduct Florida property taxes on my federal tax return?

Yes, you can deduct state and local property taxes on your federal return, but only up to $10,000 per year total (including state income tax, local income tax, and sales tax combined). This limit applies regardless of how much you actually paid. Consult a tax professional about your specific situation.