Florida does not levy a state income tax on individual wages and salary. This prohibition is enshrined in the state constitution since 1924.
Tax Overview
Florida has constitutionally banned a personal income tax since 1924, making it one of the most popular states for retirees and high-income earners seeking to minimize their state tax burden. The state generates revenue primarily through sales taxes, tourism-related taxes, and property taxes. Florida does impose a 5.5% corporate income tax on C-corporations.
Other Taxes in Florida
6% state sales tax, plus local discretionary surtaxes up to 2.5%, bringing the combined rate to as high as 8.5% in some counties.
Property taxes are levied by counties, cities, and school districts. Florida offers a $50,000 homestead exemption for primary residences and caps annual assessment increases at 3%.
5.5% corporate income tax on C-corporations with taxable income exceeding $50,000. S-corps, partnerships, and sole proprietorships are generally exempt.
Documentary stamp tax of $0.70 per $100 on deeds and $0.35 per $100 on notes and mortgages, paid on real estate transactions.
Federal Taxes Still Apply
While Florida does not levy a state income tax, residents are still subject to federal income tax, FICA taxes (Social Security and Medicare), and self-employment tax. Use our Federal Income Tax Calculator to estimate your federal tax liability.