Quick Highlights on Florida Sales Tax
| Detail | Value |
|---|---|
| State Sales Tax Rate Range | 6–8% |
| Base State Sales Tax Rate | 6% |
| Local Rate Range | 0–2% |
| Economic Nexus Sales Threshold | $100,000 |
| Transactional Threshold | No transactions ( with sales threshold) |
| Reference Period | Previous Calendar Year |
| Registration Deadline | Next transaction after threshold is crossed |
| Revenue Authority | Florida Department of Revenue |
As a business, do I need to collect sales tax in Florida?
Businesses are required to collect sales tax in Florida if they have a sales tax nexus in the state. This includes having a physical presence or reaching a specific sales level, which establishes an economic nexus. This is why understanding Florida state sales tax obligations is crucial for compliance.
Do I have a physical nexus in Florida?
A physical nexus in the state of Florida is established if your business has a physical presence in the state, like an office, warehouse, or store. Even temporary physical presence, like participating in trade shows or craft fairs, can create a nexus.
In Florida, physical nexus is typically triggered by employees or contractors engaged in customer-facing roles such as sales, marketing, or support.
How do I know if I have an economic nexus in Florida?
An economic nexus in Florida is determined by your sales volume. If your enterprise meets the threshold, you must register for a Florida sales tax permit, collect tax on sales shipped to Florida, and remit that tax to Florida Department of Revenue.
In Florida, economic nexus is established if your sales in the state exceed $100,000 **** the number of transactions exceeds No, based on Previous Calendar Year.
Marketplace sales (e.g., Amazon, eBay) are excluded when calculating whether you've exceeded the Florida economic nexus threshold.
Sales made for resale are excluded from the nexus threshold calculation for Florida.
Non-taxable sales are excluded from the nexus threshold calculation for Florida.
Once you cross the threshold, you must register by Next transaction after threshold is crossed.
Which goods are taxable in Florida?
In Florida, sales tax applies to:
- Retail sales of tangible personal property, unless exempt
- Admissions to places of amusement, sport, or recreation
- Storage or rental of tangible personal property
- Repairs or alterations of tangible personal property
- Rentals or leases of personal property
- Sales of taxable items at retail
What items are exempt from sales tax in Florida?
Florida exempts the following from sales tax:
- Oral hygiene products (toothpaste, dental floss, mouthwash)
- Optical goods such as prescription eyeglasses and lenses
- Certain chemical compounds and test kits used for diagnosis or treatment of disease
- Diapers
- Specified general grocery items (food for home consumption)
For a full list of exempt items, refer to the Florida Department of Revenue's sales tax exemptions guidance.
Is SaaS taxable in Florida?
In Florida, SaaS is partially taxable. The following categories are taxable:
In Florida, the following software and SaaS categories are considered taxable:
- SaaS — On premises: Software as a Service installed and operated from the customer's in-house server and computing infrastructure rather than a third-party server.
- Software delivered on tangible media: Software distributed and obtained through physical means, such as CDs or DVDs.
Pure cloud-hosted SaaS (remotely accessed with no software transfer or installation) is generally not taxable in Florida. Consult a tax advisor to confirm the classification of your specific product.
If you are uncertain about the taxability of your specific software product in Florida, consult with a tax specialist.
How can a business get a sales tax permit in Florida?
To obtain a sales tax permit in Florida, businesses need to register with the Florida Department of Revenue. Registration can be completed online through the Florida Department of Revenue website.
You will need to provide detailed information about your business, including business type, ownership details, and the nature of your business activities.
When should a business file sales tax in Florida?
Sales tax returns in Florida are generally due on the 19th day after month end for the previous period. Based on your annual tax liability, you may qualify for a less frequent filing schedule:
- Quarterly filing: Available if your annual tax liability is below $1,000 (returns due 19th day after each quarter end)
- Annual filing: Available if your annual tax liability is below $100 (returns due 19th day after year end)
You can file your Florida sales tax return through the Florida Department of Revenue online portal at https://myfloridataxes.florida.gov/_/.
Does Florida offer a timely filing discount?
Yes, Florida offers a timely filing benefit for businesses that file and pay on time:
Florida offers a collection allowance for businesses that file and pay electronically on time:
- 2.5% of the initial $1,200 of tax owed, capped at $30 per reporting location
- If the tax due is less than $1,200, the allowance will be proportionately less than $30
This allowance is only available when filing and paying electronically by the due date.
What are the penalties for late filing in Florida?
Florida imposes the following penalties for non-compliance:
- Late filing penalty: 10% of the tax owed, with a minimum of $50, even if no tax is due
- Electronic filing/payment failure: Additional penalty of $10 each for failure to file or pay electronically, on top of other applicable penalties
- Interest: Accrues on unpaid amounts from the due date at the statutory rate
For more details, refer to the Florida Department of Revenue guidance on penalties.
Is shipping taxable in Florida?
In Florida, delivery service fees are generally taxable when associated with the sale of taxable goods. However, if the fee is separately indicated on an invoice and can be avoided by the purchaser's decision or action (for example, by choosing to pick up the item), it is not subject to tax.
Does Florida have a Remote Seller program?
Florida requires remote sellers who exceed the economic nexus threshold to register, collect, and remit sales tax using standard state rates.