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Official Tax Guide

Florida Taxes 2025: Income, Sales, and Property Tax Guide

Complete guide to Florida state taxes. Income tax (0%), sales tax, and what you need to know before moving.

Updated January 15, 2026
5 min read

State Tax Guide 2025: Florida

Moving to Florida offers a significant financial advantage due to its unique tax structure. As a state with no personal income tax, Florida attracts retirees, remote workers, and business owners alike. This guide provides a breakdown of what you can expect regarding taxes in 2025.

1. Income Tax

Florida is one of the few states in the U.S. that does not levy a state-level personal income tax on residents.

  • Tax Rate: 0%.
  • Structure: Neither progressive nor flat; there is simply no state income tax.
  • Details:
    • Wages: You will not pay state tax on wages, salaries, or tips earned while working in Florida.
    • Federal Income Tax: You are still required to file federal income tax returns with the IRS and pay federal taxes.
    • No Filing Requirement: Since there is no tax, you generally do not need to file a separate annual state income tax return (unlike in states with a "pass-through" entity tax).

2. Sales Tax

Florida utilizes a sales tax system that applies to most goods and some services.

  • State Sales Tax Rate: 6% (as of 2025).
  • Local Surtaxes: Counties in Florida may impose a discretionary sales surtax on top of the state rate.
    • Total Rate: This typically brings the total sales tax rate between 6% and 7.5% depending on the specific county.
    • Example: A purchase in Miami-Dade County may have a higher total rate than a purchase in a rural county.
  • Use Tax: If you purchase goods from out-of-state retailers (e.g., online) and do not pay sales tax at the time of purchase, you are required to pay a "use tax" at the same rate as the local sales tax.
  • Exemptions: Groceries, prescription medications, and certain medical devices are generally exempt from state sales tax, though local taxes may still apply to some items.

3. Property Tax

Florida property taxes are administered at the county level. While rates vary, they are generally competitive compared to the national average.

  • Overview: Property taxes are based on the assessed value of your real estate. Florida does not tax personal property (such as furniture or vehicles) at the state level.
  • Effective Rate: The effective tax rate (total tax paid divided by market value) generally ranges from 0.8% to 1.2% depending on the county and municipality.
  • Homestead Exemption:
    • Florida offers a significant exemption for permanent residents.
    • If you own and live in your home as of January 1st, you can claim a homestead exemption that reduces the taxable value of your home by up to $50,000.
    • This exemption also caps annual increases in assessed value at 3%, protecting you from rapid tax hikes due to rising property values.
  • Millage Rates: Taxes are calculated in "mills" (1 mill = $1 of tax per $1,000 of assessed value).

4. Other Taxes

While Florida is tax-friendly regarding income, there are other taxes to be aware of:

  • Gas Tax: Florida imposes a gas tax that varies by year and fuel type. It is generally competitive with national averages but is subject to change by the state legislature.
  • Sin Taxes:
    • Cigarettes: A specific excise tax is applied per pack.
    • Alcohol: Beer, wine, and spirits are subject to specific excise tax rates in addition to sales tax.
  • Corporate Income Tax: If you are moving a business, Florida levies a 5.5% corporate income tax on federal taxable income (with some adjustments). Note: The first $50,000 of taxable income is exempt for certain corporations.
  • No Inheritance/Death Tax: Florida does not impose a state estate or inheritance tax. However, federal estate tax laws still apply depending on the value of the estate.

5. Retiree Taxes

Florida is widely considered one of the most tax-friendly states for retirees.

  • Retirement Income:
    • Social Security: Not taxed at the state level.
    • Pensions and 401(k)s: Not taxed at the state level.
    • IRAs: Withdrawals are not subject to state income tax.
  • Homestead Exemption: As mentioned in section 3, this is vital for retirees to lower property costs.
  • No "Exit Tax": Florida does not tax out-of-state pensions or retirement distributions, even if you worked in a high-tax state previously.

6. Comparison to Neighbors

Florida’s tax structure differs significantly from its neighboring states:

  • Georgia: Georgia has a progressive income tax system (with a top rate of 5.19% in 2025), though it offers a retirement income exclusion. Florida offers a 0% rate on all income.
  • Alabama: Alabama has a state income tax (rates range from 2% to 5%), though it offers generous exemptions for retirees. Florida has no income tax at all.
  • South Carolina: South Carolina has a progressive income tax (top rate of 6.4% in 2025) but offers a deduction for retirement income. Florida has no income tax and no tax on retirement income.

Verdict: For high-income earners and those with significant non-retirement investment income, Florida generally offers a lower overall tax burden than its neighbors.

Disclaimer

Tax laws are subject to change and vary by jurisdiction. The information provided in this guide is for general educational purposes based on 2025 data and should not be considered legal or financial advice. Consult a certified public accountant (CPA) or tax professional for advice specific to your financial situation.