Florida Local Surtax Changes for 2026: What Businesses Need to Know in Hillsborough, Jackson, Martin, and Palm Beach Counties

Florida Local Surtax Changes for 2026: What Businesses Need to Know in Hillsborough, Jackson, Martin, and Palm Beach Counties

Overview of Florida Local Surtaxes

Florida’s sales and use tax structure combines a statewide 6 percent base rate with locally imposed discretionary surtaxes authorized under sections 212.054 and 212.055, Florida Statutes. While the Florida Department of Revenue (the “Department”) administers collection and remittance, counties retain authority to adopt, extend, repeal, or allow expiration of local surtaxes through ordinances, resolutions, and (in some cases) voter referenda.

On December 1, 2025, the Department issued multiple Tax Information Publications (TIPs) addressing county-level surtax changes and rate impacts heading into 2026. These updates matter operationally: a correct surtax rate depends on correct county sourcing, and rate changes must be reflected in point-of-sale systems, invoicing, and tax engines effective on the applicable date.

This article consolidates the Department’s guidance for Hillsborough, Jackson, Martin, and Palm Beach Counties into one practitioner-focused reference.

Hillsborough County: Infrastructure Surtax Extended Through 2041

Hillsborough County approved Ordinance No. 24-3, extending the expiration date of the county’s 0.5 percent local government infrastructure surtax from November 30, 2026, to December 31, 2041. The Department’s TIP confirms the total state and local sales and use tax rate for Hillsborough County is 7.5 percent.

The total Hillsborough County rate is composed of Florida’s 6 percent state sales and use tax, plus the following surtaxes: a 0.5 percent school capital outlay surtax, a 0.5 percent indigent care surtax, and a 0.5 percent local government infrastructure surtax.

Practical takeaway: This update may not change the current rate, but it eliminates a near-term sunset date that many businesses had already calendared for future system updates. Dealers should confirm that internal rate-change controls and software triggers reflect the revised expiration date. (Department TIP 25A01-12; issued December 1, 2025.)

Jackson County: Small County Surtax Extension Maintains 7.5 Percent Rate

Jackson County adopted Ordinance No. 2025-04 extending the county’s 1 percent small county surtax, which was previously set to expire on December 31, 2025. The Department’s TIP confirms the total state and local sales and use tax rate for Jackson County will remain 7.5 percent.

The total Jackson County rate is composed of Florida’s 6 percent state sales and use tax, a 0.5 percent school capital outlay surtax, and a 1 percent small county surtax.

Practical takeaway: Because this is an extension, the compliance risk is not a surprise rate increase—it is the opposite: a preventable under-collection risk if a business mistakenly programs the surtax to drop off after December 31, 2025. Dealers should validate county assignments and effective-date logic in their systems. (Department TIP 25A01-13; issued December 1, 2025.)

Martin County: School Capital Outlay Surtax Expiration Reduces the Rate to 6.5 Percent

In Martin County, the Department reports that the 0.5 percent school capital outlay surtax expires December 31, 2025. Beginning January 1, 2026, the total state and local sales and use tax rate for Martin County will decrease from 7 percent to 6.5 percent.

Beginning January 1, 2026, the Martin County total rate consists of Florida’s 6 percent state sales and use tax and a 0.5 percent local government infrastructure surtax.

Practical takeaway: Rate decreases can create audit and customer-service friction if systems continue collecting at the old rate after the expiration date. Over-collection can lead to refund requests, pricing disputes, and administrative clean-up. Businesses should update tax engines effective January 1, 2026, and consider whether customer contracts address tax rate changes in both directions. (Department TIP 25A01-14; issued December 1, 2025.)

Palm Beach County: Infrastructure Surtax Repealed; Capital Outlay Surtax Begins January 1, 2026

Palm Beach County’s changes reflect both voter action and county repeal. The Department reports that in November 2024, Palm Beach County voters approved a ballot referendum imposing a 0.5 percent school capital outlay surtax effective January 1, 2026. The Department also reports that in April 2025, the Palm Beach County Board of County Commissioners approved Ordinance No. 2025-008 repealing the county’s 1 percent infrastructure surtax effective December 31, 2025.

Beginning January 1, 2026, the Department’s TIP confirms Palm Beach County’s total state and local sales and use tax rate will decrease from 7 percent to 6.5 percent.

The total Palm Beach County rate beginning January 1, 2026 is composed of Florida’s 6 percent state sales and use tax and a 0.5 percent school capital outlay surtax.

Practical takeaway: Palm Beach is a useful reminder that referendum results do not always tell the full net-rate story—subsequent ordinances can offset or materially change the expected combined rate. Dealers should ensure their update process captures both voter-approved surtax changes and county repeals. (Department TIP 25A01-15; issued December 1, 2025.)

Compliance Notes for Multicounty and Remote-Seller Businesses

Across all four counties, the Department reiterates a consistent administrative point: state sales tax and local surtaxes collected must be reported and remitted to the Department.

For businesses with Florida footprint complexity (multiple locations, delivery across county lines, installation jobs, jobsite deliveries, marketplace activity, or remote sales), the common risk points are:

1) Effective-date controls: ensuring rate changes apply on January 1, 2026 (where applicable), and that extended surtaxes are not inadvertently sunset in systems.

2) County sourcing integrity: ensuring the correct county is assigned for the taxable transaction under the business’s sourcing rules and operational workflow.

3) Over-collection/under-collection exposure: both can create audit issues, refund requests, and customer disputes.

4) Change management documentation: maintaining a record of when and how rate updates were implemented can help shorten audit cycles and support defensible compliance positions.

Key Authorities and Department Guidance Cited

Hillsborough County: Ordinance No. 24-3; Department TIP 25A01-12 (Dec. 1, 2025); sections 212.054 and 212.055, Florida Statutes.

Jackson County: Ordinance No. 2025-04; Department TIP 25A01-13 (Dec. 1, 2025); sections 212.054 and 212.055, Florida Statutes.

Martin County: Resolution 2018-02(b); Department TIP 25A01-14 (Dec. 1, 2025); sections 212.054 and 212.055, Florida Statutes.

Palm Beach County: Ordinance No. 2025-008; Department TIP 25A01-15 (Dec. 1, 2025); sections 212.054 and 212.055, Florida Statutes.

© 2025 Jeanette Moffa. All rights reserved.