Doing business in Florida comes with a unique set of tax obligations. Whether you’re a small business owner or a large corporation, understanding the state’s tax laws is essential for staying compliant and avoiding costly penalties. In this article, we’ll cover the basics of business taxes in Florida, including sales tax, corporate income tax, and more.
Sales Tax
Sales tax is one of the most common taxes businesses must pay in Florida. The state’s sales tax rate is 6%, which is the same as the national average. However, some counties and cities may impose additional taxes on top of the state rate. For example, Miami-Dade County has an additional 1% sales tax, bringing the total rate to 7%.
Businesses must collect sales tax from customers on taxable goods and services. The amount of sales tax charged depends on the customer’s location. For example, if a customer is located in Miami-Dade County, the business must charge 7% sales tax. Businesses must then remit the collected sales tax to the state.
Corporate Income Tax
Florida does not impose a corporate income tax on businesses. This means that businesses do not have to pay taxes on their profits or income. However, businesses may still be subject to federal income taxes.
Employer Taxes
Businesses with employees must pay employer taxes in Florida. This includes federal payroll taxes such as Social Security and Medicare taxes, as well as state unemployment insurance taxes. Employers must also withhold income taxes from their employees’ wages and remit them to the state.
Property Tax
Businesses that own property in Florida must pay property taxes. Property taxes are based on the assessed value of the property and are used to fund local services such as schools and public safety. Property taxes are paid annually and are due by March 31st.
Other Taxes
In addition to the taxes mentioned above, businesses may also be subject to other taxes such as fuel taxes, alcohol taxes, tobacco taxes, and more. Businesses should check with their local government to determine which taxes they are required to pay.
Conclusion
Doing business in Florida comes with a unique set of tax obligations. Businesses must pay sales tax, employer taxes, property tax, and other applicable taxes. It’s important for businesses to understand their tax obligations in order to stay compliant and avoid costly penalties. If you have any questions about business taxes in Florida, contact a qualified accountant or tax professional for assistance.
