Florida
How 2023 Sales Tax are calculated in Florida
The state general sales tax rate of Florida is 6%. Florida cities and/or municipalities don't have a city sales tax.
Every 2023 combined rates mentioned above are the results of Florida state rate (6%), the county rate (0% to 2.5%). There is no city sales tax for the Florida cities. There is no special rate for Florida.
An Overview of Florida Sales and Use Tax
Florida's sales and use tax system is a vital component of the state's economy, funding public services and infrastructure. Whether you're a business owner or a consumer, understanding how these taxes work can help you stay compliant and avoid penalties.
The History of Florida Sales and Use Tax
Florida implemented its first sales tax in 1949, starting with a modest 3% rate. Over the decades, this rate has evolved to accommodate the state's growing population and economic needs. The use tax was introduced to complement the sales tax, ensuring fairness in taxing purchases made outside Florida but used within the state.
What Is Sales Tax in Florida?
Sales tax in Florida is levied on the retail sale, rental, or lease of most tangible goods and certain services. The current statewide rate is 6%, though additional local discretionary surtaxes can increase the total rate in some counties. Retailers are responsible for collecting sales tax at the point of sale and remitting it to the Florida Department of Revenue.
What Products and Services Are Taxed in Florida?
Florida imposes sales tax on a wide variety of goods and services, including:
- Tangible Personal Property: Items such as furniture, clothing, electronics, and appliances.
- Rental and Lease Transactions: Short-term rental of property, such as vehicles and vacation homes.
- Commercial Rentals: Leasing or renting commercial real estate.
- Amusement and Recreation Services: Tickets to events, theme parks, and attractions.
- Certain Repair Services: Repairs or alterations to tangible items, such as vehicle maintenance.
- Some Digital Goods: Digital items like e-books, music, and software may be taxable if delivered electronically.
However, Florida provides exemptions for some essential goods and services, including most groceries, prescription medications, and medical equipment.
When Are You Required to Collect Sales and Use Taxes?
Businesses are required to collect Florida sales tax if they sell taxable goods or services within the state or deliver taxable items to Florida customers. Out-of-state businesses must also collect Florida sales tax if they have a significant business presence (nexus) in Florida. In the absence of collected sales tax, Florida residents and businesses are required to self-report use tax.
History of Florida's state sales tax rates
| Effective Date Range | State Sales Tax Rate (%) | Notes |
|---|---|---|
| November 1, 1949 - March 31, 1968 | 3.00% | Florida introduced its sales tax at a 3% rate in 1949 as a revenue measure for the state government. |
| April 1, 1968 - April 30, 1982 | 4.00% | The tax rate was raised to 4% in 1968 to address growing state fiscal needs. This rate remained until the early 1980s. |
| May 1, 1982- January 31, 1988 | 5.00% | The rate increased to 5% in 1982 to accommodate budgetary requirements. |
| February 1, 1988 - Present | 6.00% | The rate was raised to 6% in February 1988, which has remained the rate to this day. |
For more details, please refer to the official Florida Department of Revenue.
Florida state rate(s) for 2023
Lowest possible rate: 6% (e.g., , Florida)
Other common rates: 6.5% .7%, 7.5%,
Highest possible rate: 8.5% (Tampa, Florida)
Average combined rate across Florida: 6.995%