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 last year allows Floridians to enjoy many items tax-free.
Recent News: Gov. Ron DeSantis signed a $1.07 billion Florida sales tax relief bill into law on May 7. As Kiplinger reported, the legislation defines 2024 sales tax holidays and provides several tax cuts for businesses and families, including a one-year property tax exemption on home insurance premiums.
For more information see New Florida Tax Relief Package: What's In it for You?
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[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.
Florida sales tax
Florida has a 6% statewide sales tax. Localities can add as much as 2%, and the average combined rate is 7.002%, 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 is Florida property tax?
In Florida, the average effective property tax rate is 0.82%.
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 must apply to receive an additional homestead exemption.
(Note: Income limitations for the additional homestead exemption are adjusted annually.)
In the News: A new tax reform proposal in Florida is causing heated debate. The proposed bill, sponsored by state House Rep. Ryan Chamberlin, seeks to study whether the Sunshine State can eliminate property taxes.
For more information see Will Property Taxes Be Eliminated in Florida?
Florida motor vehicle taxes
Florida taxes gasoline at $0.26 per gallon.
Florida taxes on alcohol and tobacco
| 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.
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