Florida State Tax: Overview
Florida is often considered a top destination for retirees, but adults of all ages can enjoy the fact that Florida is one of nine states that doesn't have a state personal income tax. Florida property rates are relatively low compared to the national average and a Florida tax relief bill passed in 2023 allows Floridians to enjoy many items tax-free.
[Data for this state tax guide was gathered from several sources including the U.S. Census Bureau, the state’s government website, the Sales Tax Handbook, and the Tax Foundation. Property taxes are cited as a rate percentage rather than the assessed value.]
Florida Income Tax
Florida is one of the nine states with no income tax. You won't pay state tax on wages, retirement income or investment income.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Florida Sales Tax
Florida has a 6% statewide sales tax. Localities can add as much as 2%, and the average combined rate is 7.02%, according to the Tax Foundation.
- Groceries are tax-exempt.
- Prescription drugs are tax-exempt.
- Diapers are tax-exempt.
- Some feminine products are tax-exempt.
How Much Are Property Taxes in Florida?
In Florida, the average effective property tax rate is 0.86%.
Florida Property Tax Breaks for Retirees
Additional Homestead Exemption: Florida residents ages 65 and older who meet certain criteria can receive an extra homestead exemption from some city and county governments.
- Homeowners may receive an additional exemption of up to $50,000 if they use the home as a primary residence and meet income qualifications.
- Homeowners may qualify for an exemption up to the total assessed value of their property if they meet the criteria above and have lived at the property for at least 25 years and the just value of the property is below $250,000.
Homeowners must apply to receive an additional homestead exemption.
(Note: Income limitations for the additional homestead exemption are adjusted annually.)
Florida Motor Vehicle Taxes
When considering state excise tax and other state taxes and fees, Florida's tax on gasoline is $0.352 per gallon.
Motor vehicle purchases are subject to sales tax in Florida.
Florida Alcohol and Tobacco Taxes
| Cigarettes | $1.34 per pack |
| Cigars | tax-exempt |
| Other tobacco products | 85% of wholesale price |
| Beer | $0.48 per gallon |
| Wine | $2.25 per gallon |
| Wine (sparkling) | $3.50 per gallon |
| Liquor | $6.50 per gallon |
Florida Estate and Inheritance Taxes
Florida is one of the states with no estate or inheritance taxes.
Related Content
-
-
Should I Trade Stocks or Options?
Answering the question "should I trade stocks or options" will depend on your own risk tolerance, investing objectives and understanding of market dynamics.
-
This Is How You Can Be a Snowbird in Retirement
There’s a lot to consider, and warm weather shouldn’t be the only deciding factor. For instance, will you rent or buy? What’s the tax and health care situation?
-
A Little-Known Tax-Free Way To Help Pay Your Student Loan
Student Debt Employers can provide valuable assistance with employee student loan repayments.
-
Tax Tips for National Preparedness Month
Disaster Preparedness September is National Preparedness Month. These tips can help you secure important documents and information — before a disaster happens.
-
Places That Now Have More Time To Pay Estimated Tax
Tax Deadlines Estimated tax payments are due soon — September 15 in most cases. But many people have more time to pay the IRS due to natural disasters. Are you one of them?
-
IRS Announces Florida Tax Relief Following Hurricane Idalia
Tax Deadline In response to the severe damage caused by Hurricane Idalia, the IRS has extended tax deadlines for affected Floridians.
-
Will Your State Rebate Check Be Taxed for 2023?
State Rebates Here's what the IRS says about taxing 'state stimulus checks' and other special state rebates and what it could mean for you.
-
Most Expensive States for Millionaires in 2023
Income Tax If you earn a lot of money, you may want to avoid these most expensive states for millionaires. Some high earners in these areas could pay income tax rates greater than 50%.
-
Hawaii IRS Tax Deadline Extended After Devastating Wildfires
Tax Relief Some Hawaii tax deadlines have been extended by the IRS following devastating wildfires. Here's what impacted residents should know.
-
Best States for Middle-Class Families Who Hate Paying Taxes
State Taxes Here are the best states for middle-class families with "middle incomes" (due to low tax burdens).
