Residents in Florida do not have to pay income taxes. Major taxes collected in Florida include sales and use tax, intangible tax and corporate income taxes.
The strength of Florida’s low tax burden comes from its lack of an income tax, making them one of seven such states in the U.S. The state constitution prohibits such a tax, though Floridians still have to pay federal income taxes.
Other U.S. states that currently don't have an income tax: Alaska, Nevada, South Dakota, Texas, Washington and Wyoming.
According to ABC News, in the absence of an income tax:
Florida relies on sales taxes.
Alaska depends primarily on petroleum revenue to pay for its state operations.
Nevada is boosted by taxes paid by gambling operations in the state.
South Dakota's Department of Revenue Special Tax Division collects a variety of state taxes, including cigarette excise, bank franchise and alcoholic beverage taxes, and even a coin operated Laundromat license fee.
Texas depends on a state sales tax, with local jurisdictions collecting additional sales tax amounts and property taxes to help pay government bills.
Washington remains in the no-income-tax fold thanks to its voters' rejection in November 2010 of a proposed income tax on Washington's wealthiest residents.
In addition to no personal state income tax, Wyoming also forgoes a corporate income tax.
Find out if you are having too much or too little Federal income tax withheld from your pay by using the IRS Withholding Calculator.
Get income tax return planning tips at efile.com.