Florida is One of the Most Tax-Friendly States
The Sunshine State is well known for not having a state income tax, and its property taxes are below the midpoint for the U.S. While sales taxes are somewhat high, Florida is one of the top ten most tax-friendly states – and one of the key reasons many of us choose to live here…oh, and that thing called ‘weather’! Of course the tax friendliness of a state is a strong consideration, but don’t do that thinking in a vacuum. When you weigh and prioritize other factors such as climate, crime rates, access to health care, proximity to friends and family and culture, Florida comes out pretty high up at the top anyway! So it’s a double dose of “good”. Here are some key points briefly covering the kinds of taxes we do and don’t have here.
Sales Tax
6% state levy. Localities can add as much as 2%, and the average combined rate is 6.8%, according to the Tax Foundation.
Income Tax
Florida has no state income tax.
Motor Fuel Taxes
Gasoline: $0.41 per gallon.
Diesel: $0.34 per gallon.
Property Taxes
The average property tax on a median value Florida home of $159,000 is $1,686.
Vehicle Taxes
6 percent state sales tax is due on the entire purchase price. Additionally, county sales tax (based on where the buyer lives) is due on the first $5,000 of the purchase price (or on each lease payment).
“Sin” Taxes
Cigarettes: $1.34 a pack
Cigars: No tax
All other tobacco products: 85% of the wholesale price
Beer: $0.48 per gallon.
Wine: $2.25 per gallon
Liquor: $6.50 per gallon
Travel Taxes
Hotel: There is no statewide lodging tax, but municipalities can levy them. Rates vary, and sales tax is also due. For example, in Fort Lauderdale, this adds up to 11%.
Rental cars: The state imposes a $2-per-day surcharge, and sales tax is due.
Wireless Service Taxes
14.7%
Inheritance & Estate Taxes
No inheritance tax or estate tax.
Unusual Tax Issues to Note
In a desire to encourage parents to keep their kids safer, Florida exempts youth bicycle helmets, booster seats and other child restraint systems from its sales tax.
So, to sum up, Florida has no income tax, no estate/inheritance tax and an average sales tax of 6.66%. Property taxes are slightly below the U.S. average, but there are homestead exemptions at the state level ($50,000) and in many counties (up to $50,000). Some county sales taxes bring the total up to 7.5%, though, which is as high as California. All-in-all, we’re a VERY tax-friendly state! One more reason we love it here!
Here at TaxProblemSolver.com, we’re available to help you make the most of your tax breaks, and enjoying all Florida has to offer! If you have any questions, email me at larry@taxproblemsolver.com and I, or one of my Tax Problem Solver Team, will help you with any questions you may have. And enjoy the sunshine! Seems like it’s getting ready to stay for awhile.
About the Author Larry Heinkel J.D. LL.M
Larry Heinkel is a tax and bankruptcy attorney with more than 38 years experience helping businesses and individuals, solve their state and federal tax problems. Mr. Heinkel has been extremely successful in representing his clients before IRS and DOR, and is known throughout Florida as an expert in tax problem resolution.
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