Florida state taxes are the main source of revenue for the state government. Sales and use taxes are the most prominent sources of state income, but there are other ways that Florida raises money. For example, the state charges a tax on renting or leasing real estate and on the use of amusement machines. In addition, property taxes are high in Florida, but homestead exemptions are available to reduce the burden on low-income residents.
Unlike most states, Florida does not have an individual income tax or a state capital gains tax. However, it does impose sales and excise taxes on a variety of items, including cigarettes, alcohol, and medical equipment. There are also several tax exemptions, such as a tax break for the purchase of energy-efficient appliances and a reduction in the sales tax on certain items. In addition, the state does not tax Social Security benefits or pensions from 401(k)s, 403(b), and IRAs. In fact, Florida’s upside-down tax structure means that families with the lowest incomes pay eight times more in state and local sales and excise taxes as a percentage of their income than wealthy families do.
Corporations that earn income in Florida must pay a state corporate income and franchise tax. This tax is based on the proportion of a corporation’s income that is earned in Florida compared to its income from other places. A financial advisor can help you understand how Florida’s tax system fits into your overall financial picture.
Florida Taxes Due Dates
Independent contractors and gig workers must make quarterly estimated tax payments throughout the year. The IRS sets these deadlines, which generally fall on pre-set dates throughout the year. However, they do not necessarily represent three months of tax payments because they are scheduled at uneven intervals.
June 15, 2024 – The estimated tax payment is due in the second quarter. September 15, 2024 – Third quarter estimated tax payment due. January 15, 2025 – Fourth quarter estimated tax payment due. The final installment is often calculated using 90% of your prior year’s tax liability, which reduces or eliminates the underpayment penalty.
The business tax return due date is March 15 for C Corp and S Corp and May 1 for Partnerships (multi-member LLCs and multi-member taxable corporations). Can be extended to October 1.
Florida levies taxes on many goods and services that are not related to income, such as documentary stamp taxes on documents that transfer interest in real property or electricity rates. Some counties also levy local sales surtaxes.