Florida State Income Tax Overview

Florida is one of a small number of states that does not impose a personal income tax on residents. If you live or work in Florida, you do not file a Florida state income tax return, and there is no Florida equivalent to a Form 1040.

That said, no state income tax does not mean no taxes. Florida funds state and local government through other taxes, including sales taxes, property taxes, and business taxes. Understanding how Florida collects revenue, and how that compares to other states, is important whether you are moving to Florida, already living in the state, or considering relocating elsewhere.

This page explains how Florida's tax system works, what taxes residents do and do not pay, and how Florida compares to other states from a tax perspective.

Does Florida Have a State Income Tax?

No. Florida does not have a state-level personal income tax.

Residents of Florida do not pay state income tax on wages, salaries, self-employment income, retirement income, or investment income. There is also no Florida state income tax return to file and no state income tax withholding taken from paychecks.

This is not a temporary policy or a tax credit that can change year to year. Florida's lack of a personal income tax is written into the state constitution, which prohibits the state from imposing one without voter approval. As a result, Florida has remained a no-income-tax state for decades.

It is important to note that this applies only to state income taxes. Florida residents are still required to file and pay federal income taxes with the IRS, just like residents of every other state.

How Florida Raises Revenue

Florida's lack of a personal income tax does not mean the state operates without revenue. Instead of taxing wages and salaries, Florida relies more heavily on consumption-based taxes, property taxes, and business taxes to fund state and local government.

Understanding this trade-off is important, especially for people moving to Florida from high–income-tax states.

Sales and Use Taxes

Florida's primary revenue source is its sales and use tax.

• The statewide sales tax rate is 6% on most goods and some services.
• Many counties impose an additional local surtax, which can raise the total rate above 6%.
• Sales tax applies broadly, meaning residents tend to pay more tax when they spend, rather than when they earn.

For households that spend a large portion of their income, this can offset some of the benefits of having no income tax.

Property Taxes

Property taxes in Florida are imposed at the local level, not by the state directly.

• Rates vary widely by county and municipality.
• Florida offers a homestead exemption for primary residences, which can significantly reduce taxable value for qualifying homeowners.
• Property taxes are often a larger ongoing cost for Florida residents than income taxes would be in other states.

For homeowners, especially retirees and long-term residents, property tax planning matters.

Corporate and Business Taxes

While individuals are not subject to state income tax, businesses are.

• Florida imposes a corporate income tax on certain businesses operating in the state.
• This tax helps balance the absence of individual income tax revenue.
• Small businesses structured as pass-through entities generally do not pay this tax at the entity level.

This distinction is important for entrepreneurs comparing Florida to other low-tax states.

Other State and Local Taxes

Florida also collects revenue through:

• Fuel taxes
• Communication services taxes
• Alcohol, tobacco, and tourism-related taxes
• Various fees and assessments

Tourism plays a major role in Florida's tax structure, shifting part of the tax burden to non-residents.

How long do you have to live in Florida to avoid taxes?

Residency for tax purposes is demonstrated by whether or not an individual has taken steps to move into Florida, and, sever residency in a previous state or country. You may still need to file a full-year, part-year, or non-resident income tax return in your current state for the year you move to Florida.

If you are considering moving to Florida, remember that personal income taxes are just part of the overall tax burden. In the state of Florida, however, the overall cost of living is relatively low compared to other high tax states such as California, New Jersey, and New York.

Bottom line: Florida taxes spending, property, and business activity rather than personal income. For many residents, especially high earners and retirees, this structure can be advantageous, but it is not tax-free living.

Last updated: January 17, 2026

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