Florida Taxes: What Are They?

Overview

Florida’s tax system comprises a variety of state and local taxes administered primarily by the Florida Department of Revenue (DOR). These include major revenue sources such as sales and use tax, corporate income tax, and property taxes. This guide provides an overview of Florida’s tax administration, compliance requirements, and dispute resolution procedures.

State Tax Structure

Major State Taxes

Florida’s tax revenue is largely derived from the following sources:

• Sales and Use Tax: General rate of 6%, with specific rates for commercial rentals, mobile home sales, and electricity.
• Corporate Income Tax: Levied on businesses operating within Florida.
• Documentary Stamp Tax: Applied to real estate transfers and financial instruments.
• Motor Fuel Taxes & Communication Services Tax: Applied to fuel sales and telecom services.
• Miscellaneous Taxes: These include insurance premiums, rental car surcharges, beverage and tobacco taxes, and severance taxes on natural resources.

Local Taxes and Fees

Counties and municipalities impose various taxes and fees, including:

• Ad Valorem Property Taxes: Assessed based on market value and subject to exemptions and limitations.
• Tourist Development Taxes: Applied to short-term rentals and hotel stays.
• Public Services & Franchise Fees: Charged for utilities and telecommunications services.