Florida Sales Tax

Florida Sales Tax is 6% on most goods and services. Whether you’re selling in Florida or just passing through, you need to understand how sales tax works here. Remember, those tax dollars don’t belong to you – they’re collected on behalf of the state and must be returned to it at certain times. If you’re doing business in Florida, you should know that state sales tax needs to be paid on most goods and services – from groceries to medical equipment to admission to one of the state’s famous amusement parks. You may also need to pay use tax on items you purchased online or from other states if no sales tax was charged or if you were charged at a lower rate. Learn more about Florida’s sales and use tax rates. And be sure to file on time – late returns and payments are costly.

How to File Florida Sales Tax?

There are three ways to file your Florida Sales Tax:

• Online: The Florida Department of Revenue recommends this method. You can file and pay through their secure online system [Florida Department of Revenue, Sales and Use Tax Application].
• By Mail: You can use Florida’s Sales and Use Tax Return (Form DR-15) to file and mail your return along with your payment [Florida Department of Revenue, How to Complete Sales and Use Tax Return (Form DR-15)].
• Third-party Software: Some businesses use tax filing software to manage their sales tax. These can automate the filing process for a fee.

Florida Sales Tax Exemptions

Florida sales and use taxes generate most of the state’s revenue, and a large portion of that money goes to fund essential government services. However, sales tax exemptions are controversial. Some critics view them as “loopholes,” while others see them as ways to keep the tax burden low for certain groups of people.

Some goods are exempt from sales tax in Florida, including most groceries (although food prepared and sold for immediate consumption is taxable), prescription drugs, and medical equipment. Other taxable items include amusement machines, electricity, and gasoline. Florida also has several sales tax holidays, during which specific taxable items (e.g., reusable ice packs priced less than $20 or portable generators priced $3,000 or less) become tax-free for limited time periods.

HB 7063 creates many new sales tax exemptions in Florida, including one that applies to small private investigative agencies that perform qualifying janitorial and nonresidential pest control services. Currently, these services are subject to sales tax in the state, but the new exemption will partially correct this wrong.

Florida Sales Tax Due Dates

If you sell taxable goods or services in Florida, it’s important to know the sales tax filing due dates. Each state has its own set of laws and regulations regarding sales tax collection and remittance. In addition, each state’s due date for sales tax returns and payments varies based on how frequently you file.

Some businesses are required to file and pay sales tax electronically. These include retail and service businesses with sales of $5,000 or more in a fiscal year and wholesalers with a sales tax liability of $180 or less per year.

The CDTFA assigns a filing frequency (quarterly prepay, quarterly, monthly, or fiscal yearly) to each registered business. The due dates are based on the reporting period and calendar year. The deadline is extended to the next business day if a due date falls on a weekend or legal holiday. Businesses that file late are subject to penalties and interest.