NEWS & INSIGHTS
2025 Florida Discretionary Sales Surtax Rates
Florida’s counties are authorized to impose a discretionary sales surtax on taxpayers. Each year, these rates change, and 2025 in particular has changes worth noting. It important to understand that the Florida Department of Revenue administers sales tax in the state and also the discretionary sales surtax on behalf of counties. What this means is that when an audit of Florida sales tax occurs, the Florida Department of Revenue is also looking for discretionary sales surtax errors. This article will explain what discretionary sales surtax is and include the discretionary sales surtax rate changes for 2025. Further, this article provides known future changes to Florida discretionary sales tax surtax rates.
What is a Discretionary Sales Surtax?
A discretionary sales surtax is an additional tax imposed by Florida counties on transactions subject to the state’s sales tax. The surtax applies to the first $5,000 of the purchase price of items subject to sales tax, excluding certain exemptions like groceries and prescription medications. Revenue generated from this surtax is earmarked for specific local projects, such as improving schools, enhancing infrastructure, or funding emergency services.
Each county determines its own surtax rate, which ranges from 0% to 2%, depending on the county’s needs and voter approval. In 2025, notable changes to surtax rates and policies will take effect in several counties.
2025 Surtax Rate Changes
For 2025, multiple counties in Florida are adjusting their discretionary sales surtax rates to support new or extended initiatives:
Hamilton County: 2% Total Surtax Rate
New Tax: A 1% enhanced fire protection and rescue services surtax begins January 1, 2025, and will expire on December 31, 2036.
Existing Tax: The current 1% small county surtax remains in effect until December 31, 2029.
Marion County: 1.5% Total Surtax Rate
New Tax: A 0.5% school capital outlay surtax begins January 1, 2025, and expires December 31, 2034.
Extended Tax: The 1% local government infrastructure surtax is extended through December 31, 2044.
Martin County: 1% Total Surtax Rate
New Tax: A 0.5% local government infrastructure surtax begins January 1, 2025, and expires December 31, 2034.
Existing Tax: The current 0.5% school capital outlay surtax remains in effect until December 31, 2025.
Seminole County: 1% Total Surtax Rate
Extended Tax: The existing 1% local government infrastructure surtax is extended through December 31, 2034.
Future Surtax Changes
Several counties have surtax changes scheduled for future years, impacting long-term planning for businesses and residents alike:
Bay County: 1% Total Surtax Rate
Extended Tax: The current 0.5% local government infrastructure surtax will be extended effective January 1, 2027, and expire December 31, 2036.
Existing Tax: The 0.5% school capital outlay surtax remains in effect through December 31, 2030.
Escambia County: 1.5% Total Surtax Rate
Extended Tax: The current 0.5% school capital outlay surtax will be extended effective January 1, 2028, and expire December 31, 2037.
Existing Tax: The 1% local government infrastructure surtax remains in effect through December 31, 2028.
Hernando County: 0.5% Total Surtax Rate
Extended Tax: The current 0.5% school capital outlay surtax will be extended effective January 1, 2026, and expire December 31, 2035.
Hillsborough County: 1.5% Total Surtax Rate
Extended Tax: The 0.5% local government infrastructure surtax will be extended effective December 1, 2026, and expire December 31, 2041. (See TIP 24A01-15 for details about surtax suspension.)
Existing Taxes: The 0.5% indigent care surtax remains in effect until repealed, and the 0.5% school capital outlay surtax remains in effect through December 31, 2028.
Holmes County: 1.5% Total Surtax Rate
Extended Tax: The 0.5% indigent care surtax will be extended effective January 1, 2027, and expire December 31, 2032.
Existing Tax: The 1% small county surtax remains in effect through December 31, 2028.
Implications for Residents and Businesses
For Residents:
Enhanced Public Services: New and extended surtaxes will fund critical services like education, infrastructure, and emergency response.
Transparency and Accountability: Counties often provide detailed plans for how surtax revenues will be allocated, ensuring taxpayers understand the benefits.
For Businesses:
Budgeting and Compliance: Businesses must account for changes in surtax rates when calculating sales tax remittances.
Localized Impact: Companies operating in multiple counties should remain aware of surtax variations to manage compliance effectively.
Conclusion
Florida’s discretionary sales surtax is a powerful tool for addressing local needs, enabling counties to fund essential services and infrastructure improvements. As surtax rates change in 2025 and beyond, staying informed will help residents and businesses adapt to new financial realities while supporting their communities. Whether you’re a business owner navigating compliance or a resident looking to understand how your tax dollars are spent, these changes underscore the importance of local governance in shaping Florida’s future.
Additional Articles by the SALTy Orange at Moffa Tax Law:
Temporary Suspension of Hillsborough County Discretionary Sales Surtaxes
Motor Vehicle Sales Tax Rates by State – 2024
Florida Corporate Income Tax Case Lost on Procedural Technicality
Jeanette Moffa, Esq.
Phone: (954) 800-4138
Email: [email protected]
Jeanette Moffa is a Partner in the Fort Lauderdale office of Moffa, Sutton, & Donnini. She focuses her practice in Florida state and local tax. Jeanette provides SALT planning and consulting as part of her practice, addressing issues such as nexus and taxability, including exemptions, inclusions, and exclusions of transactions from the tax base. In addition, she handles tax controversy, working with state and local agencies in resolution of assessment and refund cases. She also litigates state and local tax and administrative law issues.
