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Florida Taxes

Income Tax, Sales Tax, Property Taxes and Tax Exemptions in the Sunshine State

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Florida Taxes
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Florida taxes are complex, just as they are in any other state. In this article, we take a look at how residents of the Sunshine State are affected by income tax, sales tax, property tax and other government levies.

Income Tax

Here's the good news: Florida has no income tax! We're one of a few states in the union (including Texas and Alaska) that do not assess an income tax on our residents. Of course, you'll still need to pay federal income taxes to keep Uncle Sam happy, but there's no need to mail an annual check off to Tallahassee.

Property Tax

Unfortunately, you won't get off as easily when it comes to property taxes. We have some of the highest property tax rates in the nation. After all, the government needs to fund services somehow.

Florida residents may take advantage of a number of property tax exemptions designed to provide you with a discount on your property taxes. Most homeowners are eligible for at least one of these exemptions on their primary residence and many Florida residents qualify for other property tax discounts based upon age, disability and/or veteran status. For more information, read Florida Property Tax Exemptions.

Mortgage and Recording Taxes

Closing costs are a major factor when considering a home purchase in Miami or South Florida. In fact, a recent BankRate.com study showed that Miami has the fourth highest closing costs of any real estate market in the country, averaging $3,683 in 2008.

For more on the taxes you'll need to pay at the closing table, read Property Closing Costs in Florida.

Sales Tax

Florida law mandates a minimum sales tax rate of 6%, collected by the state government to provide services to all Floridians. However, the law also provides for a local option sales tax that lets each county set its own local tax that is collected on top of the general state rate.

What does this mean for you? Practically speaking, it means that you'll pay a different sales tax rate in each Florida county. For the current rates in each county in the state, read Florida Sales Tax Rates.

Florida's Intangible Tax

At one time, Florida assessed an annual intangible tax on investment assets held by individuals. This tax was repealed in 2007.
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