Florida is famous for magical days at Disney World and hot nights in Miami. What’s not so well known — and slightly less fun? The state’s sales tax laws. But these are important!
If you’re selling in Florida, you’re probably on the hook for collecting and remitting sales tax.
How much should you charge, and how much will you owe? Let’s break down Florida sales tax in this guide.
Sales Tax Rates in Florida
Florida uses a base state sales tax rate of 6.0%, but many counties add a “discretionary sales surtax” between 0.5% and 2.5%. Any sales in these counties, or delivered to these counties, will require a higher total tax rate.
For instance, while Palm Beach county adds 1%, Hillsborough county adds the full 2.5%. That means customers in these counties will be charged a 7% and a 8.5% tax rate, respectively. Of course, if the county doesn’t have a surtax, then sales simply use the base rate. To know for sure, check out the county list in the Florida Department of Revenue’s section on Discretionary Sales Surtax.
What is taxable in Florida?...
- Tangible products are generally taxable in Florida, with a few exceptions. You can find a list of examples in the next section!
- Services are generally not taxed, whether that’s an accountant or a pet groomer, but there can be tricky distinctions. For example, a home cleaning service is not taxable, while an office cleaning service is. Also, if the service involves creating or repairing a product, then sales tax might apply.
- Digital products are not taxed in Florida.
Sales Tax Exemptions
Some purchases in 'The Sunshine State' are exempt from sales tax collection. A few include:
- Most groceries, such as butter, milk, and canned goods (candy and soda don’t count!)
- Vitamins and minerals, home remedies, and some medicine
- Prosthetics and orthopedic devices
- Religious items
- Seeds and fertilizer
- Manufacturing equipment and raw materials
Certain types of customers are exempt from Florida sales tax, too. Government agencies, religious organizations, some non-profits and sellers who are buying goods to resell them might not have to pay sales tax to you.
Making Sense of Florida Sales Tax
If you’re confused about whether your goods are subject to consumption tax in Florida, we hear you. Collecting and remitting the correct amount of tax in the state is complicated – especially when you add the economic nexus and Amazon service into the equation.
Fortunately, you don’t have to go it alone. Sign up for a free trial with Quaderno to see how easy and pain-free tax collection can be with the right partner by your side.
Note: At Quaderno we love providing helpful information and best practices about taxes, but we are not certified tax advisors. For further help, or if you are ever in doubt, please consult a professional tax advisor or the Tax Agency.