Florida Tax Law

  • Home
  • Florida Tax Law

Tax laws in Florida may seem confusing to many people. However, it is essential to know how these rules may apply to you or your business. In addition to understanding the potential for fines and penalties, tax law in Florida may also affect your ability to claim certain deductions.

If you need help filing your taxes or need guidance to avoid running afoul of the Florida tax law, it can be wise to seek assistance from a tax or legal professional. With their guidance, you can feel confident that you will know what is expected of you as a resident of the state.

The FL Department of Revenue (DOR) is the governmental agency that oversees taxation within the state. Of note, the state does not levy personal income tax on those who earn money within the state.

With regard to property taxes, the amount a property owner may owe depends on the value that a local property appraiser sets for your property, based on the current market value. To reach the taxable value, the appraiser subtracts any exemptions from the assessed value. There is no state-level property tax in Florida.

In determining the local tax rate, each local jurisdiction uses a millage rate, which equals one-tenth of 1%. The average Florida property tax rate is about 0.98%, with Local tax collector’s offices sending tax bills in November and payment is due the following March 31.

What Is Tax Law

Taxes are money that you are required by law to pay to the state, local, or federal government based on activities in which you engage, purchases you make, and goods or services that you sell. Some of the common things against which the government may levy legal taxes include:

  •   Income that you earn through your job or business
  •   Property that you own
  •   Goods or services
  •   Licenses
  •   Certificates

In Florida, the taxes that the government collects may be used for many things, including human services, law enforcement, and other first responders, education, transportation, municipal infrastructure, and environmental initiatives.

Florida Sales Tax Laws

In general, Florida levies a 6% sales tax, with exceptions for amusement machine receipts (4%), commercial real property leases or licenses (5.5%), and electricity (6.95%).

The state’s use tax is also 6% and usually applies to items that consumers purchase outside of Florida and are then brought into Florida for use. Some of the most common situations in which the use tax may apply include:

  • Online purchases
  • Mail-order purchases
  • Furniture or computer equipment bought from an out-of-state dealer
  • Purchases made outside the United States

Use tax may also apply if a person buys an item that is tax-exempt with the intention of reselling it but instead uses that item for personal use or in the course of their business.

Definition of Tax Law in Florida

For detailed explanations of tax law in Florida or a definition of an unfamiliar term relating to taxation, the DOR maintains a Tax Law Library on its website. It is designed to allow users to enter a search term and then provides the information the user seeks, including relevant:

  • Legal documents
  • Statutes
  • Rules
  • Tax Information Publications
  • Technical assistance advisements
(866) 691-5299