Florida LLC State Tax Obligations

After forming your LLC in Florida, understanding your state-level tax obligations is essential for compliance. Florida's headline advantage is clear — no personal state income tax — but there are other state taxes that may apply depending on your business activities. This page covers every state-level tax your Florida LLC might encounter. For federal taxes and overall tax strategy, see our complete tax guide.

No Personal State Income Tax

Florida's constitution (Article VII, Section 5) prohibits the state from levying a tax on the income of natural persons. This means:

• Single-member LLC (disregarded entity): Your LLC's income passes through to your personal return. Since Florida does not tax personal income, you owe $0 to the state on this income. You only pay federal income tax and self-employment tax.
• Multi-member LLC (partnership): Each member's distributive share passes through to their personal return. Florida imposes no tax on this pass-through income.
• S-corp election LLC: Salary and distributions pass through to members' personal returns. Again, $0 state income tax.

This single advantage saves Florida LLC members thousands to tens of thousands annually compared to states like California (up to 13.3%), New York (up to 10.9%), or New Jersey (up to 10.75%).

Florida Corporate Income Tax (5.5%)

The 5.5% corporate income tax under Chapter 220, Florida Statutes, applies only if your LLC elects to be taxed as a C-corporation (by filing IRS Form 8832).

• Rate: 5.5% of net income exceeding $50,000
• Exemption: First $50,000 of net income is exempt
• Who owes it: Only LLCs that have elected C-corp tax treatment — this is a small minority of Florida LLCs
• Filing: Form F-1120, due May 1 for calendar-year filers
• Estimated payments: Required quarterly if annual tax liability exceeds $2,500

If you are using the default pass-through tax classification (which most LLCs do), you owe no Florida corporate income tax. This tax only applies to the narrow subset of LLCs that affirmatively choose corporate taxation. See our tax elections guide for when this might make sense.

Sales and Use Tax

Florida's sales tax is the state-level tax most likely to affect your LLC, regardless of your income tax classification:

• State rate: 6%
• County discretionary surtax: 0.5% to 2.5% additional (varies by county)
• Combined rates by major county:
  • Miami-Dade: 7% (6% + 1%)
  • Broward: 7% (6% + 1%)
  • Hillsborough (Tampa): 7.5% (6% + 1.5%)
  • Orange (Orlando): 6.5% (6% + 0.5%)
  • Duval (Jacksonville): 7.5% (6% + 1.5%)
  • Palm Beach: 7% (6% + 1%)
  • Alachua (Gainesville): 7.5% (6% + 1.5%)

When your LLC must collect sales tax:

• Selling tangible personal property at retail (goods)
• Providing certain taxable services (pest control, cleaning, detective/security, nonresidential building repair)
• Charging for commercial rent (2% state rate + applicable surtax — one of the few states that taxes commercial rent)
• Operating transient accommodations (short-term rentals, hotels — taxed at 6% state + county tourist development tax)
• Charging admissions to entertainment events

Common exemptions:

• Professional services (legal, accounting, medical, engineering, consulting)
• Groceries (unprepared food for home consumption)
• Prescription medications
• Residential rent (non-transient, over 6 months)

Registration: Apply for a sales tax permit using Form DR-1 with the Florida Department of Revenue. Registration is free. You will receive a Certificate of Registration (DR-11) and begin collecting and remitting sales tax. Filing frequency (monthly, quarterly, or semi-annually) depends on your volume.

For detailed sales tax information, see our sales tax guide.

Tangible Personal Property Tax

Florida counties levy an annual ad valorem tax on tangible personal property used in business:

• What is taxed: Business equipment, furniture, fixtures, computers, tools, machinery, signs, leasehold improvements, and similar physical assets
• What is NOT taxed: Inventory held for resale, licensed vehicles (taxed separately through registration), intangible assets
• Exemption: First $25,000 of assessed value is exempt (must file to claim)
• Filing: DR-405 return with your county property appraiser, due April 1 each year
• Rates: Set by county; typically 1.5% to 2.5% of assessed value (same millage rate as real property in your jurisdiction)

Important: You must file the DR-405 return even if your total tangible property is below $25,000 — the filing is how you claim the exemption. Failure to file means the county can estimate your property value and bill you accordingly, often at a higher amount than your actual assets warrant.

This tax catches many Florida LLC owners by surprise. If you have more than $25,000 in business equipment, furniture, and fixtures, budget for this annual tax.

Reemployment Tax (Unemployment Tax)

If your LLC has employees, you owe Florida reemployment tax (the state's term for unemployment insurance tax):

• Taxable wage base: First $7,000 of each employee's wages per year
• Rate: Varies by employer experience rating (new employers: 2.7% typically; experienced employers: 0.1% to 5.4%)
• Filed with: Florida Department of Revenue
• Filing frequency: Quarterly (Form RT-6)

Self-employed LLC members (not on W-2 payroll) are not subject to reemployment tax on their own distributive income.

Taxes That Florida Does NOT Impose on LLCs

• Personal income tax: Constitutionally prohibited
• Franchise tax: Eliminated January 1, 2021
• Business privilege tax: Does not exist in Florida
• Minimum annual tax/fee: No minimum (unlike California's $800)
• Capital stock tax: Does not apply to LLCs
• Unincorporated business tax: Does not exist in Florida (unlike New York City)

Annual Cost Summary for a Typical Florida LLC

Note: Tax obligations can change. Verify current rates with the Florida Department of Revenue (floridarevenue.com) and your county property appraiser's office.

FAQ

Does my Florida LLC owe any state tax if I have no employees and do not sell goods?

If your LLC uses pass-through taxation (the default), does not sell taxable goods or services, and has less than $25,000 in tangible business property, your only state-level cost is the $138.75 annual report. No income tax, no franchise tax, no minimum fee. This makes Florida one of the cheapest states to maintain a service-based LLC.

Do I need to file a Florida state tax return?

Not unless your LLC has elected C-corp taxation (Form F-1120) or owes sales tax (various DR forms) or has tangible property above $25,000 (DR-405). Pass-through LLCs with no sales tax obligations have no state tax return to file — their only annual filing is the $138.75 annual report on Sunbiz.org.

Is commercial rent really taxed in Florida?

Yes. Florida is one of very few states that imposes sales tax on commercial (non-residential) lease payments. The rate is currently 2% (reduced from higher rates in recent years) plus the applicable county discretionary surtax. If your LLC leases office, warehouse, or retail space, your landlord should be collecting this tax from you as part of your rent payment.

What about property tax on my LLC's real estate?

Real property (land and buildings) is taxed by the county under a separate system from tangible personal property. If your LLC owns real estate, you pay the county's real property tax (millage rate varies by location, typically 1%-2% of assessed value). This is separate from the tangible personal property tax on equipment and is not covered by the $25,000 exemption.