Let’s face it. The sunshine and great weather, world-class golf, tourist attractions and comfortable living all year long are definite reasons people relocate to Florida. But lets we not forget. The fact we have ZERO state income tax is a huge draw!
If you’re thinking about making a move to the Sunshine State (a wise move!), here’s a quick primer on what you should know about the Florida tax code. But don’t just take our word for it before you make a move—be sure and consult with your accountant first!
No State Income Tax
Florida is one of seven states with no income tax. This is a plus if you’re still planning to work after you move here. If you’re starting a business, the current corporate tax rate is 5.5%
No “Death taxes”
Florida has no inheritance or estate tax, one either the estate value or the value of gifts given to beneficiaries.
Property Taxes & Exemptions
Property taxes in Florida are based on millage rates set by local governments, with 10 “mills” being equal to 1 percent. The millage rate is multiplied by the value of the property, which then determines the dollar amount of your property tax. County, city and school districts are permitted to levy taxes at up to 10 mills each. Special districts, such as water management, can levy additional taxes, usually at under 2 mills.
There are exemptions, however. There are several exemptions that residents may qualify for, including a homestead exemption up to $50,000 (for 65 and over) as well as exemptions for the disabled and veterans. For more information, visit http://floridarevenue.com/dor/property/taxpayers/exemptions.html
Other Notable Florida State Taxes
Sales tax: Florida charges a sales tax of 6 percent. Food, prescription drugs and non-prescription drugs are exempt from taxation. Counties can charge their own additional sales taxes, bringing the tax rate up to 9.5 percent in some areas. Of Florida’s 67 counties, 55 charge an additional sales tax.
Gas tax: The Florida gas tax is 34.4 cents a gallon for unleaded and 29.6 cents a gallon for diesel fuel.
Cigarette tax: Florida charges a $1.34 tax on each pack of 20 cigarettes. There is also a surcharge for other tobacco products, excluding cigars, equal to 60 percent of the wholesale price.
Hotel taxes: Rates vary by county and range from 2 to 6 percent. These taxes are known as the Tourist Development Tax and are charged on hotel rooms in addition to the regular sales tax rate.
All said, Florida is one of the least tax-burdened states in the US! To learn more about the additional benefits and reasons to make the move to Florida, as well as how to find the right club, call us today at 800.447.8707.