Floridian Taxes

Florida Residents enjoy some of the lightest tax burdens in the country. Florida residents do not pay personal income tax, inheritance tax, or gift taxes. These tax breaks by themselves bring many people from higher tax states to Florida every year.

You are considered a Florida resident when your primary residence is in Florida. Filing a declaration of domicile, registering to vote, or qualifying for homestead exemption in Florida can establish residency. Obtaining a Florida driver license does not establish residency, it only indicates an intent to establish residency.

Intangible Personal Property Tax

Intangible Personal Property Tax; Every Florida resident who owns intangible personal property must file a Florida Intangible Personal Property Tax Return unless the tax due, before discount, is less than $60.

"Intangible personal property" includes but is not limited to: stocks, bonds, mutual funds, money market funds, loans, notes, and certain accounts receivable.

The Intangible Personal Property Tax is an annual tax based on the market value as of January 1st. The return can be filed as early as January and is late if postmarked after June 30.

Purchase of a Home or Business Property, Obtaining a Mortgage or Loan, or Purchase of Bonds

Documentary stamp tax (also know as Doc Stamps) is levied on documents that transfer interest in Florida real estate. This tax is paid to the Clerk of Court at the time the deed is recorded.

Documentary stamp tax is also levied on notes, certain renewal notes, bonds, and other written obligations to pay money executed, signed or delivered in Florida and mortgages and other liens filed or recorded in Florida. The tax is paid to the Clerk of Court if the document is recorded, or sent directly to the Department of Revenue, if not recorded.

Buying Merchandise

Sales Tax; Florida's sales tax rate is 6 percent. Each retail sale, storage fee, admission charge, use charge, or rental is taxable, along with some services. There are some items that are specifically exempt. Some counties impose a sales surtax in addition to the 6 percent state tax. The county tax rates range from .25 to 2.5 percent. These taxes are only levied on the first $5,000 of the purchase price. This $5,000 limit does not apply to services or commercial rentals. Consumers must pay all sales taxes to the seller at the time of purchase.

Use Tax; Unless specifically exempt, items purchased out of state is subject to a 6% tax when brought into Florida within 6 months of the purchase date. Examples of taxable purchases include purchases made by mail order or the Internet. Items purchased and used in another state for 6 months or longer are not subject to use tax when the items are later brought into Florida.

No use tax is due if the out-of-state merchant charged sales tax of 6 percent or more. If the merchant charged less than 6 percent, you must pay the difference to equal 6 percent.

Owning Real Estate

Ad Valorem (Property) Tax; If you purchase real estate in Florida, you will pay ad valorem or "property" tax based on the taxable value of the property. Ad valorem taxes are assessed by each county’s property appraiser and collected annually by the county’s tax collector's office.

A $25,000 homestead exemption on assessed value is available to homeowners who meet certain requirements. Certain exemptions are also available to blind persons and other physically challenged residents.

Motor Vehicle Registration and Taxes

Florida's 6 percent use tax is also due on motor vehicles brought into this state within 6 months from the date of purchase. Use tax does not apply if a like tax equal to or greater than 6 percent has been paid to another state. To qualify for exemption from use tax on motor vehicles, you must provide documents to prove that the vehicle was used outside Florida for at least 6 months.

The full amount of use tax (6 percent) applies and is due on any motor vehicle imported from a foreign country into Florida, regardless of when it was purchased or if any taxes were already paid on the vehicle in another country. The tax is calculated on the value of the vehicle when it was brought into Florida, not on its original sales price.

Other Taxes and Fees

The State of Florida does not impose personal income, inheritance, or gift taxes. There are some other taxes and fees that Florida residents may be required to pay, such as: convention development tax, communications services tax, local option tourist tax, fuel, gross receipts tax, tire fee, lead-acid battery fee, Lemon Law fee, or rental car surcharge.