What Is Florida Sales Tax & How Does It Work? 2024

A sales tax is applied to the final cost of certain goods and services and pays the state or local governmental body. As Florida doesn’t have a personal income tax, state and local income largely comes from sales taxes and property taxes. Sales taxes are often collected by the seller of a good or service and must be paid to the government. In some cases, it is the consumer’s responsibility to pay the state government the sales use tax. A seller or consumer may be responsible for the state sales tax as well as a local or district tax, which varies based on the location.

Florida Sales Tax

The current sales tax in Florida as of 2024 is 6%. Sales tax collection is overseen by the state’s Department of Revenue (DOR). The final amount of certain sales is taxed at 6%, and this is paid to the DOR. There are certain transactions that are exempt from this sales tax. This includes:

• There is a 3% tax on the retail sale of a new mobile home.
• There is a 4% tax on amusement machine receipts, which includes shooting galleries, pinball machines, jukeboxes, or arcade games.
• There is a 5.5% tax on the lease, rental, and licensure of commercial real property. This tax is decreased to 4.5% in December of 2024.
• There is a 6.95% tax on electricity.

Florida Use Tax

A use tax is imposed in Florida when the sales tax wasn’t paid during a purchase. Often, these taxes are applicable to online purchases, mail-order purchases from catalogs, international purchases, or any out-of-state purchases. Use tax in Florida is also 6%. Use tax may be necessary when:

• A taxable item was bought in Florida, and no sales tax was paid.
• A tax-exempt item was bought for the intention of resale, and the item was then not resold and used for business or personal reasons.
• A taxable item was bought outside Florida and brought or shipped into the state, and no sales tax was paid.

In these situations, the consumer is responsible for paying the state or local government the appropriate use tax if the seller doesn’t collect the tax. This payment should be made to the Florida DOR.

Florida Discretionary Sales Surtax

A discretionary sales surtax, or a county tax, is a transactional tax, like sales or use taxes. Discretionary sales surtaxes are imposed and collected by individual counties and vary based on the location of the transaction. When a mobile home or vehicle is purchased, the surtax is based on the address of the purchaser. For some transactions, the county surtax only applies to the first $5,000 in the sale. Discretionary sales surtaxes are paid to the state DOR.

Transient Rental Taxes

Florida law also allows countries to impose taxes for certain accommodations. The includes rentals and leases for six months or less on locations such as:

• Hotels and motels
• Apartments
• Rooming houses
• Mobile home and RV parks
• Condominiums
• Timeshare resorts

Local transient rental taxes are paid to the local governmental body.

FAQs About What Is Florida Sales Tax & How Does It Work

How Much Is Sales Tax in Florida in 2024?

The sales tax in Florida in 2024 is 6%, which applies to sales, admissions, rentals, and storage. There are exceptions to this sales tax. Electricity is taxed at 6.95%, mobile home retail sales are taxed at 3%, and commercial real property is taxed at 5.5%. On December 1st, 2024, the commercial real property tax will change to 4.5%. Amusement machines, which include jukeboxes, arcade games, pool tables, and telescopes, are taxed at 4%.

What Items Are Tax-Free in Florida 2024?

There is a permanent exemption for sales taxes on certain baby and toddler products. Until June 2024, there is an exemption on energy star products between $1,500 and $3,000, on gas ranges and cooktops, and on hurricane-resistant doors and windows.

There are also several sales tax holidays that occur at different points in the year in Florida. Two are back-to-school shopping tax holidays, one of which is the first two weeks of January 2024. The Freedom Summer ends in September and exempts sales taxes for recreational supplies for boating, water activities, camping, outdoor supplies, and other items. This holiday also covers tickets to music and cultural events.

How Does Florida Make Money Without an Income Tax?

Without imposing a personal income tax, Florida state and local governmental bodies collect income through corporate income taxes, documentary stamp taxes, insurance taxes, and sales taxes. Local governments earn revenue through property taxes, which vary from county to county.

What Are the New Tax Laws in Florida 2024?

Some changes to Florida tax laws include:

• Commercial property lease and rental sales taxes decrease from 5.5% to 4.5% starting December 2024
• Back-to-school tax holidays on July 24 to August 6, 2024, and January 1-14, 2025
• Freedom Summer tax holiday from May 29 to September 8, 2024
• Energy Star tax holiday from July 1, 2024, to June 30, 2025
• Tools and work materials tax holiday from September 2-8, 2024
• Permanent sales tax removal for items such as baby and toddler items, oral hygiene products, firearm safety devices, and equipment needed to produce renewable gas

Work With the Qualified Tax Attorneys at TaxSmith, LLC

Tax law can be complex, and even sales tax laws can get confusing for consumers and business owners. State and federal taxes come with significant requirements and regulations, and taxpayers who fall behind can find themselves subject to penalties and interest on top of their tax liability.

If you are in need of legal guidance for tax debt or other tax issues, the attorneys at TaxSmith, LLC want to help. Our attorneys have worked in tax law for many years and know how important it is that your attorney is knowledgeable in tax law and is able to individualize their legal approach to your requirements. Our team works to understand your situation and be honest about your legal options. We can help you review tax returns, determine what payments you should be making, and help you find a solution to tax liabilities and penalties. Contact our team today with your tax needs.