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Florida Tax Guide: No State Income Tax

Discover why Florida is one of the most popular states for tax-conscious residents, retirees, and businesses.

None
Income Tax Rate
7.01%
Combined Sales Tax
0.86%
Property Tax Rate
#47
Tax Burden Rank

Tax Overview

Florida is one of the most tax-friendly states in the nation, with no state income tax on individuals. This means wages, investment income, retirement distributions, and all other forms of personal income are entirely exempt from state-level taxation. This policy is enshrined in the Florida Constitution, making it very difficult to change. Florida's lack of income tax is a major driver of interstate migration, attracting residents from high-tax states.

The state generates revenue primarily through sales tax and tourism-related taxes. Florida's state sales tax rate is 6%, with local surtaxes that can push the combined rate above 8% in some counties. Most groceries and prescription medications are exempt from sales tax, but the tax applies broadly to most other goods and many services. Florida also generates significant revenue from documentary stamp taxes on real estate transactions.

Property taxes in Florida are moderate overall, but the state offers one of the most generous homestead exemptions in the country. The Save Our Homes amendment caps annual assessed value increases at 3% for homesteaded properties, which can result in substantial savings for long-term homeowners. Non-homesteaded properties do not receive this protection and may see larger annual increases. Florida also has no estate or inheritance tax.

Income Tax

No State Income Tax

Florida has no state income tax, a protection enshrined in the state constitution. All forms of personal income are exempt from state taxation.

Sales Tax

State Rate6.00%
Avg. Local Rate1.01%
Combined Rate7.01%

Property Tax

Effective Rate0.86%
Median Annual Bill$2,338

Key Deductions in Florida

  • ✓No state income tax means no state deductions needed
  • ✓Homestead exemption up to $50,000 off assessed value
  • ✓Save Our Homes 3% annual assessment increase cap
  • ✓Additional $50,000 homestead exemption for seniors (65+) with limited income
  • ✓Veteran disability property tax exemptions
  • ✓Tangible personal property tax exemption ($25,000)

Filing Information

Filing Deadline: N/A (no state income tax)

Tax Authority: Florida Department of Revenue

Phone: (850) 488-6800

Website: https://floridarevenue.com

Frequently Asked Questions

Will Florida ever have a state income tax?
It is extremely unlikely. Florida's Constitution explicitly prohibits a state income tax on individuals, and changing this would require a constitutional amendment approved by voters. There is very little political appetite for such a change.
How does the Florida homestead exemption work?
Florida offers up to $50,000 off the assessed value of your primary residence for property tax purposes. The first $25,000 applies to all taxes, and the second $25,000 applies to non-school taxes on assessed value between $50,000 and $75,000.
Does Florida tax retirement income?
No, Florida does not tax any form of retirement income, including Social Security, pensions, 401(k) distributions, and IRA withdrawals. This makes Florida one of the most attractive states for retirees from a tax perspective.
What is the Save Our Homes benefit?
Save Our Homes caps the annual increase in assessed value of your homesteaded property at 3% or the CPI, whichever is lower. This can result in significant savings over time as market values may increase much faster than 3% annually.
Are groceries taxed in Florida?
No, most grocery food items are exempt from Florida sales tax. However, prepared foods, restaurant meals, and certain snack items are taxable at the full state and local rates.

Neighboring State Guides

GeorgiaAlabama

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