This Florida tax guide covers the rules in force from 1 January 2026. Florida’s constitution bars a personal income tax and any estate or inheritance tax, so residents pay only federal income tax — up to 37% on ordinary income and 23.8% on long-term gains. The state levies a 5.5% corporate tax above $50,000, a 6% sales tax plus county surtax of up to 2%, and property tax softened by a homestead exemption of up to $51,411. On 3 November 2026 voters decide Amendment 3, which would raise it to $250,000 by 2028.
Introduction
Florida is the south-eastern peninsula of the United States, between the Atlantic and the Gulf, and the country’s third-most-populous state. It is a full US jurisdiction — federal law and courts, the US dollar and the US treaty network apply, and there is no state residency or investment route. Government is stable and Republican-controlled, law is common law, and English is the working language alongside widespread Spanish in the south. The climate is subtropical to tropical, with hurricanes from June to November. Prices run about 3% above the US average on the federal regional price parity, and about 14% above it in the Miami metro.
This Florida tax guide matters because Florida is the benchmark for tax-driven moves within the US: there is no Florida income tax on individuals, no estate, gift or wealth tax, and homestead rules shield a primary residence from rising assessments and from creditors. But Florida removes only the state layer; federal tax on worldwide income still applies to citizens, green-card holders and anyone passing the substantial presence test. In 2026 Florida decoupled its corporate tax from the One Big Beautiful Bill Act (ch. 2026-137), passed a modest tax package (ch. 2026-239, in force from 1 July 2026) and sent Amendment 3, its largest property tax change ever, to the 3 November ballot.
Direct Taxes
Florida taxes no individual income, resident or not, and has no state personal return. The income tax that applies is federal: citizens, green-card holders and anyone meeting the substantial presence test — 31 days in the year and 183 on a weighted three-year count — are taxed on worldwide income, non-resident aliens only on US-source income. Florida does tax corporations doing business in the state, apportioning income 25% by property, 25% by payroll and 50% by sales. The key concept is domicile: Florida’s advantage is an absence, worth only as much as a genuine departure from the previous state or country.
Personal income tax (2026 bands)
There is no Florida income tax on individuals; the 2026 federal brackets below are the only income tax a resident pays.
| Taxable income (single, USD) | Taxable income (joint, USD) | Federal rate | Florida rate |
|---|---|---|---|
| Up to $12,400 | Up to $24,800 | 10% | 0% |
| $12,401 – $50,400 | $24,801 – $100,800 | 12% | 0% |
| $50,401 – $105,700 | $100,801 – $211,400 | 22% | 0% |
| $105,701 – $201,775 | $211,401 – $403,550 | 24% | 0% |
| $201,776 – $256,225 | $403,551 – $512,450 | 32% | 0% |
| $256,226 – $640,600 | $512,451 – $768,700 | 35% | 0% |
| Over $640,600 | Over $768,700 | 37% | 0% |
The brackets come from Rev. Proc. 2025-32 and apply from 1 January 2026. The One Big Beautiful Bill Act (Public Law 119-21) made the 2017 rate structure permanent, and the 2026 standard deduction is $16,100 single, $24,150 head of household and $32,200 joint. Wages, pensions, IRA withdrawals, Social Security, dividends and gains all escape state tax. The federal deduction for state and local taxes — capped at $40,400 for 2026 and phased down above $505,000 of modified AGI — matters less here: residents deduct property tax and, instead of income tax, sales tax.
Combined federal and Florida rates
With no state layer, the combined marginal rate is the federal rate plus employee payroll tax, shown here for a single filer on wages taking the standard deduction.
| Wage income (single) | Federal income tax | Florida | Employee payroll tax | Combined |
|---|---|---|---|---|
| $50,000 | 12% | 0% | 7.65% | 19.65% |
| $100,000 | 22% | 0% | 7.65% | 29.65% |
| $150,000 | 24% | 0% | 7.65% | 31.65% |
| $250,000 | 32% | 0% | 2.35% | 34.35% |
| $400,000 | 35% | 0% | 2.35% | 37.35% |
| $700,000 | 37% | 0% | 2.35% | 39.35% |
By type of income, at the top of the scale:
| Income type | Federal | Florida | Combined |
|---|---|---|---|
| Wages | 37% + 2.35% Medicare | 0% | 39.35% |
| Interest, short-term gains, non-qualified dividends | 37% + 3.8% NIIT | 0% | 40.8% |
| Qualified dividends | 20% + 3.8% NIIT | 0% | 23.8% |
| Long-term capital gains | 20% + 3.8% NIIT | 0% | 23.8% |
Hawaii tops out at 48% on ordinary income and California adds up to 13.3% of state tax; Florida’s ceiling is simply the federal one. The 3.8% net investment income tax above $200,000 of modified AGI ($250,000 joint) applies identically in every state.
Corporate income tax
| Item | Rate |
|---|---|
| Florida corporate income tax (net income above $50,000) | 5.5% |
| Federal corporate income tax | 21% |
| Combined federal and Florida (state tax deductible federally) | ~25.3% |
| S corporations, partnerships, pass-through LLCs — Florida | 0% |
| Federal corporate alternative minimum tax (book income over $1 billion) | 15% |
The 5.5% rate applies after a $50,000 exemption; S corporations, partnerships and pass-through LLCs pay none, leaving their owners with federal tax only. Chapter 2026-137 adopts the Internal Revenue Code as at 1 January 2026 but decouples from the One Big Beautiful Bill Act’s business reliefs — bonus depreciation (§168(k)), research expensing (§174A), the §163(j) interest limit, §179 and §274 — with bonus depreciation added back and recovered over seven years. There is no state participation exemption or IP box. Federally, dividends from 10%-owned foreign subsidiaries get a 100% deduction under §245A, dividends to foreign shareholders bear 30% withholding before treaty relief, and losses carry forward indefinitely against 80% of taxable income. The US has not adopted the OECD’s Pillar Two rules.
Social security and health contributions
| Contribution | Employee | Employer | Self-employed |
|---|---|---|---|
| Social Security (federal, first $184,500) | 6.2% | 6.2% | 12.4% |
| Medicare (federal, no cap) | 1.45% | 1.45% | 2.9% |
| Additional Medicare (over $200,000 / $250,000 joint) | 0.9% | — | 0.9% |
| Federal unemployment tax (first $7,000) | — | 6.0%, 0.6% after state credit | n/a |
| Florida reemployment tax (first $7,000) | — | 2.7% new employer, 0.1%–5.4% rated | n/a |
| State disability, paid leave or health mandate | None | None | None |
The Social Security wage base is $184,500 for 2026; the self-employed pay 15.3% on 92.35% of net earnings and deduct half. Florida adds only employer reemployment tax on the first $7,000 of wages — at most $378 per employee a year. Unlike Hawaii, New York or California there is no state disability, paid-leave or health-cover mandate; beyond Medicare, health insurance is private or bought on the federal marketplace.
Indirect Taxes
Florida has no VAT. Its main indirect tax is sales and use tax, topped up by county surtaxes, alongside documentary stamp taxes on property and loan documents.
Sales and use tax
| Rate | Applies to (examples) |
|---|---|
| 6% state + 0%–2% county surtax | Most tangible goods, admissions, lodging rented for six months or less |
| 7% combined | Miami-Dade, Broward, Pinellas (St. Petersburg) |
| 6.5% combined | Orange (Orlando), Palm Beach |
| 7.5% combined | Hillsborough (Tampa), Duval (Jacksonville) |
| 6% combined | Collier (Naples) and Citrus — no surtax |
| 8% combined | Hamilton — highest in the state |
| Exempt | Groceries, prescription drugs, most services, long-term residential rent, commercial rent |
Rates follow the Department of Revenue’s 2026 Form DR-15DSS; Palm Beach’s surtax fell to 0.5% on 1 January 2026. The surtax applies only to the first $5,000 of any single item, capping the local layer on cars, boats and art. Florida sales tax on commercial rent — the only such state tax in the US — was repealed from 1 October 2025 (ch. 2025-208). Chapter 2026-239 moved the permanent back-to-school holiday to 20 July–20 August, added a hunting, fishing and camping holiday running to 31 December 2026, and offers a refund of up to $500 on impact-resistant windows and doors bought by 30 June 2029.
Excise and other indirect taxes
| Tax | Notes |
|---|---|
| Documentary stamp tax — deeds | 0.70% of the price; Miami-Dade 0.60%, plus a 0.45% surtax unless the property is a single-family home |
| Documentary stamp tax — notes and mortgages | 0.35% of the debt |
| Nonrecurring intangible tax | 0.2% of loans secured on Florida real property |
| Tourist development tax | County-set levy on short-term lodging, on top of sales tax and surtax |
| Fuel, communications, alcohol and tobacco | State excises, partly shared with local government |
On a $1 million condominium outside Miami-Dade bought with a $700,000 mortgage, deed stamps come to $7,000, note stamps to $2,450 and intangible tax to $1,400 — about $10,850 in all, with local custom deciding who pays the deed stamps. The annual intangible tax on investments was repealed in 2007, so financial assets bear no state tax once acquired.
Other Taxes Worth Knowing
| Tax | Florida treatment |
|---|---|
| Capital gains tax | None at state level. Federal 0% / 15% / 20% on long-term gains (20% above $545,500 single, $613,700 joint) plus 3.8% NIIT; short-term at ordinary rates |
| Dividends (resident individual) | None at state level. Federal: qualified 0% / 15% / 20% plus 3.8%; others at ordinary rates |
| Interest (resident individual) | None at state level. Federal ordinary rates to 37% plus 3.8%; municipal bond interest federally exempt |
| Rental income | No state income tax. Federal ordinary rates plus 3.8%; stays of six months or less also bear sales tax, surtax and county tourist tax |
| Wealth / net worth tax | None — the annual intangible personal property tax was repealed from 1 January 2007 |
| Inheritance tax | None — barred by Article VII, section 5 of the constitution |
| Estate tax | None at state level (no Florida estate tax for deaths since 1 January 2005). Federal: 40% above $15,000,000 for citizens and domiciliaries; only $60,000 for non-resident non-citizens’ US assets |
| Gift tax | None at state level. Federal: $19,000 annual exclusion per donee ($194,000 to a non-citizen spouse); larger gifts use the $15,000,000 lifetime exclusion |
| Immovable property tax (annual) | Local millage on assessed value; homestead exemption up to $51,411 and 3% Save Our Homes cap; non-homestead 10% cap on non-school levies |
| Tangible personal property tax | Business equipment above a $25,000 exemption; return due 1 April |
Property tax is where Florida recoups what it forgoes on income. A homestead owner gets up to $51,411 of exemption for 2026 — $25,000 against all levies plus an indexed $26,411 against non-school levies — and the Save Our Homes cap holds annual assessment rises to 3% or inflation, with up to $500,000 of that benefit portable to a new Florida home. Non-homestead property gets no exemption, a 10% cap on non-school levies only, and reassessment on sale; Pinellas County’s average non-school levy alone was 12.2 mills (1.22%) in 2025, before school taxes. Amendment 3 needs 60% of the vote on 3 November 2026. It would raise the non-school homestead exemption to $150,000 in 2027 and $250,000 in 2028, cut the non-homestead cap to 5% and let counties and cities exempt homesteads fully — but anyone not a Florida resident on 31 December 2026 would wait until their fifth homestead year for the larger exemption.
Disadvantages & Risks
Florida is a low-tax state inside a worldwide-taxing country. US citizens are taxed on worldwide income wherever they live, and renouncing triggers an exit tax for covered expatriates — broadly those with $2 million of net worth or average annual income tax above $211,000 — with only $910,000 of deemed gain excluded in 2026. For a foreigner, a Florida move usually means US tax residence: worldwide income, punitive PFIC rules on non-US funds, FBAR and FATCA reporting, and estate tax on worldwide assets above $15 million. Staying non-resident has its own trap: US shares and Florida real estate are US-situs assets, the non-resident estate tax threshold is $60,000, unindexed, with rates up to 40% absent a treaty, and FIRPTA withholds 15% of the gross price when a foreigner sells. Florida appears on no EU, OECD or FATF list, but it inherits full US reporting with none of the territorial features of genuine low-tax jurisdictions.
Domestically, the risks are property costs rather than taxes. Homeowners’ insurance has become the binding expense after repeated hurricanes and insurer exits, and post-Surfside condominium safety laws have forced heavy special assessments on older buildings. Local government runs on property tax, so investors carry the load: non-homestead property pays school taxes on full market value, and if Amendment 3 passes, counties may recover lost homestead revenue through higher millage, 5% cap or not. Leavers from high-tax states should expect residency audits — New York and California routinely challenge domicile changes. And there is no state immigration route: foreigners need federal visas such as the E-2 treaty-investor visa or the EB-5 green card, whose $800,000 minimum in a targeted area ($1,050,000 elsewhere) is due for inflation adjustment from 1 January 2027.
Strategy & Ideal Profile
There is no Florida holding regime, participation exemption or IP box; planning is federal planning plus domicile. Four levers work. Domicile change done properly: file a Declaration of Domicile under section 222.17 of the Florida Statutes, claim homestead, move driver’s licence, voter registration and family life, and realise large gains — a business sale, an option exercise — after the move, since the former state taxes what you realise while resident there. Homestead: the exemption, the 3% cap and constitutional creditor protection for a primary residence on up to half an acre in a city or 160 acres outside one, with no dollar limit; being resident by 31 December 2026 secures the full Amendment 3 exemption if it passes. Pass-through entities: an LLC or S corporation avoids the 5.5% corporate tax, while a C corporation, at about 25.3% combined, earns its place for retained profits or qualified small business stock, where gains on shares issued after 4 July 2025 can be excluded federally up to $15 million after five years. For foreigners, pre-immigration planning: step up basis, unwind PFIC holdings and restructure foreign companies before US residence starts.
Florida suits high earners leaving high-tax states — a Californian on a seven-figure salary sheds a state rate of up to 13.3%, a New Yorker both state and city tax. It suits retirees, whose pensions, IRA withdrawals and Social Security escape state tax and whose homestead stays cheap under Save Our Homes; business owners on pass-through structures; founders facing a large or QSBS-eligible exit; and wealthy US families, who get no estate tax and unlimited homestead protection. Florida residency has no day-count test — it is domicile, evidenced as above. The tests that bite are the federal 183-day count and the former state’s own rules.
Florida does not suit non-US investors who would become US tax residents: against the UAE, Monaco or Paraguay, entering worldwide US taxation, PFIC rules and US estate tax is a step backwards, and leaving later is costly. It does not suit landlords and second-home owners expecting low property tax — non-homestead bills commonly run at 1.5%–2% of value a year, with insurance on top — nor short-term rental investors, who collect sales tax, surtax and county tourist tax on every stay. And the reliefs have edges: the camping holiday ends with 2026, the window refund closes in 2029, EB-5 thresholds rise in January 2027, and Amendment 3 may fail — or pass and shift costs onto everyone who is not a long-standing homesteader.
FAQ
Is Florida a tax haven?
No, but it is the lowest-tax large US state: no personal income tax, no estate, inheritance, gift or wealth tax, and a 5.5% corporate tax only above $50,000. It cannot touch federal tax, which reaches citizens, green-card holders and substantial-presence residents on worldwide income at up to 37%, plus 3.8% on investment income. Florida removes the state layer — worth up to 13.3% against California — not the federal one.
What is the corporate tax rate in Florida in 2026?
Florida corporate income tax is 5.5% of apportioned net income above a $50,000 exemption, on top of the 21% federal rate — about 25.3% combined, since state tax is federally deductible. It applies only to C corporations and entities taxed as corporations. For 2026 Florida follows the federal code but decouples from the One Big Beautiful Bill Act’s bonus depreciation, research expensing, interest-limit and §179 changes.
How does the Florida homestead exemption work?
A resident who owns and permanently lives in a home on 1 January can claim up to $51,411 for 2026: $25,000 against all levies and an indexed $26,411 against non-school levies, applied for with the county property appraiser by 1 March. Save Our Homes then caps assessment rises at 3% or inflation, and up to $500,000 of the benefit can move to a new Florida home. Amendment 3 would lift the non-school exemption to $150,000 in 2027 and $250,000 in 2028, with a four-year wait for anyone not resident on 31 December 2026.
How do I establish Florida residency for tax purposes?
Florida has no day-count test; residency is domicile — a permanent Florida home and the intention to stay. Evidence includes a Declaration of Domicile filed with the county clerk under section 222.17 of the Florida Statutes, a homestead exemption, a Florida driver’s licence, voter registration and moving family and possessions. The harder tests lie elsewhere: the federal substantial presence test (183 weighted days) for foreigners, and the former state’s own rules for Americans leaving New York or California.
Does Florida tax capital gains?
Not at state level. Gains face only federal tax: 0%, 15% or 20% on long-term gains — 20% above $545,500 single or $613,700 joint in 2026 — plus 3.8% net investment income tax above $200,000 ($250,000 joint). Short-term gains are taxed as ordinary income at up to 37%. Corporations pay the 5.5% corporate tax on gains as part of net income.
Is there inheritance or wealth tax in Florida?
No. The constitution bars state estate and inheritance taxes beyond the old federal credit, which ended in 2005; there is no gift tax, and the annual intangible tax on investments was repealed in 2007. Federal estate tax still applies at 40% above $15,000,000 per person in 2026 for citizens and US domiciliaries — and above only $60,000 of US assets for non-resident non-citizens.
How are dividends taxed for a non-resident investor in Florida?
Florida adds nothing; the tax is federal withholding of 30% on US dividends, reduced by treaty — commonly to 15% on portfolio holdings. Portfolio interest and most gains on US shares are exempt for non-residents present in the US fewer than 183 days. The bigger exposure is estate tax: US shares are US-situs assets, taxable above $60,000 at death unless a treaty applies.
Sources
All figures should be checked against the primary government sources below. Only official government bodies are listed here.
- Florida Department of Revenue — corporate income tax rate, $50,000 exemption and apportionment — floridarevenue.com
- Florida Department of Revenue — TIP 26C01-01: 2026 Internal Revenue Code adoption and One Big Beautiful Bill Act decoupling (ch. 2026-137) — floridarevenue.com
- Florida Department of Revenue — Form DR-15DSS: discretionary sales surtax rates by county for 2026 — floridarevenue.com
- Florida Department of Revenue — documentary stamp tax rates, Miami-Dade rate and surtax — floridarevenue.com
- Florida Department of Revenue — Employer Guide to Reemployment Tax: $7,000 wage base, 2.7% initial rate — floridarevenue.com
- Florida Department of Revenue — tangible personal property return and $25,000 exemption — floridarevenue.com
- Florida Senate — Final bill analysis of HB 7031E (ch. 2026-239): 2026 tax package, sales tax holidays, Save Our Homes and portability rules — flsenate.gov
- Florida Senate — Florida Constitution: Article VII, section 5 (income, estate and inheritance taxes) and Article X, section 4 (homestead protection) — flsenate.gov
- Florida Legislature — Florida Statutes: chapters 193, 196, 201, 212 and 220, and section 222.17 (Declaration of Domicile) — leg.state.fl.us
- Florida Department of State — Amendment 3 official ballot title, summary and full text — dos.fl.gov
- Pinellas County Property Appraiser — 2026 homestead exemption amounts, Amendment 3 mechanics and 2025 average non-school millage — pcpao.gov
- Internal Revenue Service — Rev. Proc. 2025-32: 2026 federal brackets, standard deduction, capital gains breakpoints, estate and gift exclusions, expatriation thresholds — irs.gov
- Internal Revenue Service — One Big Beautiful Bill Act provisions, including the state and local tax deduction cap — irs.gov
- Internal Revenue Service — estate tax for nonresidents not citizens of the United States: $60,000 threshold — irs.gov
- Internal Revenue Service — FIRPTA withholding on dispositions by foreign persons — irs.gov
- Internal Revenue Service — substantial presence test for US tax residence — irs.gov
- Social Security Administration — 2026 contribution and benefit base — ssa.gov
- US Citizenship and Immigration Services — EB-5 investment amounts — uscis.gov
- Bureau of Economic Analysis — regional price parities by state and metro area — bea.gov
Florida uses the US dollar, so every figure in this guide is already stated in US dollars and no currency conversion applies.
Last verified: 3 October 2026.
This is general information, not personal tax or legal advice. Tax outcomes depend on your specific facts; consult a qualified Florida tax adviser before acting.
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