Florida’s tax structure is one of the reasons entrepreneurs choose to start businesses here. The state has no personal income tax and a relatively low corporate tax rate. But that does not mean Florida businesses are tax-free. Sales tax, corporate income tax, property tax, and payroll taxes still apply. This guide covers the basics small business owners need to understand.
No state income tax, but corporate tax exists
Florida does not tax personal income. Pass-through businesses such as sole proprietorships, partnerships, and S-corporations benefit because profits flow to the owner’s personal return. C-corporations pay Florida corporate income tax at a flat rate of 5.5 percent on federal taxable income above $50,000.
Some businesses are exempt from corporate tax. LLCs that elect to be taxed as partnerships or sole proprietorships generally do not pay Florida corporate income tax. LLCs that elect C-corp taxation do.
Florida sales tax
The state sales tax rate is 6 percent. Counties add a discretionary sales surtax, so combined rates range from 6 to 7.5 percent depending on the county. Businesses must register with the Florida Department of Revenue and collect sales tax on taxable goods and services.
Florida is destination-based for sales tax. For shipped goods, you charge the rate at the customer’s delivery address. For in-person sales, you charge the rate where the transaction occurs.
Key Florida business taxes and deadlines
| Tax or fee | Who pays | Deadline or note |
|---|---|---|
| Annual report | All Florida LLCs and corporations | Due May 1 each year |
| Corporate income tax | C-corporations | Generally due with federal return |
| Sales tax | Businesses selling taxable goods/services | File monthly, quarterly, or annually |
| Reemployment tax | Employers with covered workers | State unemployment tax, quarterly filing |
| Property tax | Business real and tangible property owners | Varies by county; homestead excludes personal residence |
Tax incentives for Florida businesses
Florida offers several business incentives. The Qualified Target Industry Tax Refund rewards job creation in targeted industries. The Florida R&D Tax Credit supports research and development spending. Enterprise Florida and local economic development offices administer these programs.
When to hire a Florida accountant
If you sell taxable products online, hire employees, own multiple entities, or plan to claim incentives, hire a Florida-licensed CPA or tax professional. Sales tax rules and incentive applications carry real penalties for mistakes. Professional help pays for itself quickly.
Want to focus on growing your business instead of guessing at tax rules? Get your operations visible first. FlaLocal offers a free AI visibility report at flalocal.com/ai-visibility-report/ to show how your Florida business appears online while you build the rest of your team.