News & Trending Tax News

8 Things To Know about Florida’s Taxes

Learn everything you need to know about Florida’s state taxes in our comprehensive guide.

aerial view of empty Hollywood Beach in Hollywood, Florida
Updated Sept. 24, 2024
Fact checked

We receive compensation from the products and services mentioned in this story, but the opinions are the author's own. Compensation may impact where offers appear. We have not included all available products or offers. Learn more about how we make money and our editorial policies.

If you’re a Florida resident, you probably find plenty to love about the state, from its climate and beaches to its theme parks and top-notch cuisine. But there might be a few unique aspects of Florida life you find less exciting, starting with its state taxes.

Are Florida’s taxes more or less than those in other states? If you live in Florida, are you getting a good return on your state tax investment so you can get ahead financially? We answer these questions and more in our guide to Florida’s state taxes.

If you’re over 50, take advantage of massive discounts and financial resources

Over 50? Join AARP today — because if you’re not a member you could be missing out on huge perks. When you start your membership today, you can get discounts on things like travel, meal deliveries, eyeglasses, prescriptions that aren’t covered by insurance and more.

How to become a member today:

  • Go here, select your free gift, and click “Join Today”
  • Create your account (important!) by answering a few simple questions
  • Start enjoying your discounts and perks!

Important: Start your membership by creating an account here and filling in all of the information (Do not skip this step!) Doing so will allow you to take up 25% off your AARP membership, making it just $12 per year with auto-renewal.

Become an AARP member now

State income taxes

Karen Roach/Adobe state texas sign on highway

Only seven states are entirely free of a state income tax, and Florida happens to be one of them. Even better, Floridians have an even smaller state tax burden than residents of some other income-tax-free states.

For instance, while Washington lacks a general state income tax, the state still levies a tax on capital gains for high earners. Florida doesn’t tax any aspect of its residents’ incomes, period.

Property taxes

Vitalii Vodolazskyi/Adobe property tax document on table

Out of all 50 states and Washington, D.C., Florida's effective property tax rate of 0.91% was the 26th-highest in the nation — Hawaii has the lowest property tax rate at 0.32%, while New Jersey has the highest at 2.23%. However, Florida’s low property tax rate hits differently depending on the home values in the city where you own property.

Florida’s real estate boom and cost of living meant the median home value (or list price) for a house in the state was $711,100 in 2022, and the average annual property tax was $6,489.40. As a result, residents of states with higher property tax rates but lower costs of living ended up paying far less in annual property taxes than the average Floridian.

In Texas, for instance, the property tax rate is 1.68% — not quite double Florida’s rate but substantially higher. (Texas has the 46th-highest property tax rate in the nation.) But because the median home value in Texas is much more affordable at $284,800, the average annual property tax payment is just $4,776.81.

Capital gains taxes

Andrii/Adobe Capital gains tax note besides money

Florida doesn’t tax capital gains. No matter how much you earn on investments and interest this year, you won’t lose any part of it to state taxes.

Resolve $10,000 or more of your debt

Credit card debt is suffocating. It constantly weighs on your mind and controls every choice you make. You can end up emotionally and even physically drained from it. And even though you make regular payments, it feels like you can never make any progress because of the interest.

National Debt Relief could help you resolve your credit card debt with an affordable plan that works for you. Just tell them your situation, then find out your debt relief options.1

How to get National Debt Relief to help you resolve your debt: Sign up for a free debt assessment here. (Do not skip this step!) By signing up for a free assessment, National Debt Relief can assist you in settling your debt, but only if you schedule the assessment.

Try it

Estate taxes

InsideCreativeHouse/Adobe senior woman consulting female investor

Like most other states, Florida doesn’t impose an estate tax. You can leave an inheritance to your kids without worrying they’ll have to give up a portion of the estate to the state of Florida.

Fuel taxes

JJ Gouin/Adobe Gasoline fuel nozzle on money

As with property taxes, Florida’s fuel taxes are just barely above average compared to the rest of the United States. The average gas tax across the nation is around $0.50 per gallon, but Florida’s average per-gallon tax comes to $0.365.

While the average U.S. diesel tax comes to $0.24 per gallon, Floridians pay an average of just $0.374.

Social Security taxes

JJ Gouin/Adobe Social Security card besides banknotes

Seniors in Florida avoid throwing away money on Social Security taxes. Most states don’t tax your Social Security earnings, and — you guessed it — Florida is among them. Even though the state has a large population of seniors, it doesn’t take a cut of their Social Security benefits.

Sales taxes

Argus/Adobe sales tax sign outdoor

Florida imposes a flat sales tax rate of 6% on nearly all goods and services in the state. A handful of products have a lower tax rate, including amusement machine receipts (4%) and commercial property renting, leasing, or licensing (4.5%). Electricity is the only commodity taxed at the slightly higher rate of 6.75%.

Finally, two items don’t incur sales taxes at all when purchased in Florida — the American flag and the Florida state flag.

How to file taxes in Florida

Proxima Studio/Adobe Accountant working with US tax forms

There’s more good tax news for Florida residents: Since you aren’t taxed by the state, you don’t have to file any tax paperwork with the state. The Florida state website does provide a link to the government’s tax e-filing site if you need to file taxes in any other state.

Do you get what you pay for in Florida?

Katherine Welles/Adobe welcome to florida sign outdoors

It’s time for the moment of truth. Do Florida taxpayers get a solid return on their investment, or does their tax burden fail to yield many positive results?

Thanks largely to Florida’s nonexistent income tax, the state ranks second in the nation in terms of securing a solid return on tax dollars. While the minimal state taxes mean Florida doesn’t have the resources to offer many government services, its low tax burden ensures state taxpayers have a little extra money in their pockets come tax season.

Plus, even without revenue from income taxes, Florida still manages to have the eighth-best roads and 15th-best bridges in the country. With rock-solid infrastructure and fewer taxes than most anywhere else in the nation, it’s easy to see why Florida is a top spot for retirees looking to make the most of their golden years stress-free.

Earn cash back on everyday purchases with this rare account

Want to earn cash back on your everyday purchases without using a credit card? With the Discover®️ Cashback Debit Checking account (member FDIC), you can earn 1% cash back on up to $3,000 in debit card purchases each month!2

With no credit check to apply and no monthly fees to worry about, you can earn nearly passive income on purchases you’re making anyway — up to an extra $360 a year!

This rare checking account has other great perks too, like access to your paycheck up to 2 days early with Early Pay, no minimum deposit or monthly balance requirements, over 60K fee-free ATMs, and the ability to add cash to your account at Walmart stores nationwide.

Don’t leave money on the table — it only takes minutes to apply and it won’t impact your credit score.

Apply for a Discover Cashback Checking account today

Bottom line

Gabriele Maltinti/Adobe welcome to florida inscription on sand

Sunshine isn’t the only thing that makes Florida a popular destination. Having more cash in your wallet from not facing state income taxes, capital gains taxes, and Social Security taxes can make for a comfortable living situation, as long as you keep overall living costs in check.

Lucrative, Flat-Rate Cash Rewards

5.0
info

Wells Fargo Active Cash® Card

Current Offer

$200 cash rewards bonus after spending $500 in purchases in the first 3 months

Annual Fee

$0

Rewards Rate

Earn unlimited 2% cash rewards on purchases

Benefits and Drawbacks
Card Details


Author Details

Michelle Smith

Michelle Smith has spent a decade writing for and about small businesses. She specializes in all things finance and has written for publications like G2 and SmallBizDaily. When she's not writing for work at her desk, you can usually find her writing for pleasure near large bodies of water.