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Florida's Tax Advantages

Florida's stable and highly favorable tax climate provides advantages that make a Florida location profitable for every type of business. Progressive legislation also ensures that Florida remains a worldwide hub for new and expanding businesses.

Florida residents pay no personal income tax, nor do they pay inheritance taxes unless they are subject to a federal estate tax, in which case the Florida inheritance tax is limited to an amount allowed as a deduction from the federal estate tax.
Florida has…
  • NO corporate income tax on limited partnerships
  • NO corporate income tax on subchapter S-corporations
  • NO state personal income tax guaranteed by constitutional provision
  • NO corporate franchise tax on capital stock
  • NO state-level property tax assessed
  • NO property tax on business inventories
  • NO property tax on goods-in-transit for up to 180 days
  • NO sales and use tax on goods manufactured or produced in Florida for export outside the state
  • NO sales tax on purchases of raw materials incorporated in a final product for resale, including non-reusable containers or packaging
  • NO sales/use tax on boiler fuels
  • NO sales/use tax on co-generation of electricity

 Florida offers Sales and Use Tax Exemptions on…

  • Semiconductor, defense and space technology-based industry transactions involving manufacturing or research equipment
  • Purchases of machinery and equipment used by a new or expanding Florida business to manufacture, produce or process tangible personal property for sale
  • Labor, parts and materials used in repair of and incorporated into machinery and equipment that qualify for sales tax exemption upon purchase (phased in over four years, 75% exempt on July 1, 2001)
  • Electricity used in the manufacturing process
  • Aircraft parts, modification, maintenance and repair, sale or lease of qualified aircraft
  • Commercial space activity -- launch vehicles, payloads and fuel, machinery and equipment for production of items used exclusively at Spaceport Florida
  • Labor component of research and development expenditures.
  • Any facility, device, fixture, machinery or equipment required for pollution control, abatement or monitoring of equipment used in manufacturing processing or compounding items for sale.
Florida Corporate Tax
Corporations and artificial entities that conduct business, or earn or receive income in Florida, including out-of-state corporations, file a Florida corporate income tax return with the
Florida Department of Revenue unless specifically exempt. The return must be filed, even if no tax is due. Florida's Corporate Tax rate is 5%.
S Corporations and tax-exempt organizations are generally not required to file a Florida corporate income tax return if they do not have federal taxable income. If they have federal taxable income, however, they are then required to file a Florida corporate income tax return and pay any tax due.

Personal Property Tax

Beginning January 1, 2007, individuals, married couples, personal representatives of estates, and businesses are no longer required to file an annual intangible personal property tax return reporting their stocks, bonds, mutual funds, money market funds, shares of business trusts, and unsecured notes. The Legislature repealed the annual tax on these properties.

However, not all intangible taxes have been repealed. The intangible tax on leases of government-owned real property and the one-time intangible tax on notes secured by a mortgage on Florida real property are still in effect.
Real Estate Tax 
The real estate tax is a combination of city, county and school taxes and is based on 100% of the appraised value of a property. The tax year corresponds to the calendar year.
Real estate taxes are due and payable November 1st of the current year. In Florida, homeowners may be eligible for a $50,000 exemption from real estate taxes on the assessed value of a home, if it is their primary residence and if they meet certain other criteria.
State and Local Sales Tax

The state sales tax is 6 percent on the dollar with exemptions on food, medicine and professional services. Indian River County has added a 1% sales tax to be in effect until December 31, 2019, making the total sales tax 7%.  Companies that collect sales tax remit those collections monthly to the Florida Department of Revenue.