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.
According to StateofFlorida.com, 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.
Tip! You can find out if you are having too much or too little Federal income tax withheld from your pay by using the IRS Withholding Calculator.
Facts:
- Florida Sales Tax: Florida sales tax rate is 6%.
- Florida State Tax: Florida does not have a state income tax.
- Florida Corporate Income Tax: Corporations that do business and earn income in Florida must file a corporate income tax return (unless they are exempt).
- Florida Property Tax: Florida Property Tax is based on market value as of January 1st that year.
Find out more about the Florida state tax profile here.
Get income tax return planning tips at efile.com.
In the news, Florida's tax climate is the fifth best in the county, according to a report from the Tax Foundation. Florida ranked first this year in individual income tax structure, third in unemployment tax structure, 14th in corporate tax, 12th in sales tax and 16th in property tax.
The state with the best tax climate is Wyoming followed by South Dakota, Nevada and Alaska. The worst state is New Jersey followed by New York, California, Minnesota and Vermont, the study concludes. Read more at Tampa Bay Times.