Kara Sears
Florida's sales tax law was first adopted in 1949, when policymakers implemented a 3% general sales tax, with exemptions on groceries and prescription drugs. Florida was the 27th state to adopt a sales tax, following Mississippi's lead 17 years earlier. The current sales tax rate in Florida is 6%, with some cities and counties imposing additional local sales taxes. An example of this is the Hillsborough County discretionary sales surtax, which was temporarily suspended in 2025. Sales tax is collected on the sale of tangible goods and certain services, and it is the responsibility of the seller to collect and remit the tax to the state and local tax authorities.
| Characteristics | Values |
|---|---|
| Year Florida started sales tax | 1949 |
| Florida's position among states that started sales tax | 27th state |
| Tax rate | 3% |
| Tax exemptions | Groceries purchased for human consumption, prescription drugs |
| Current tax rate | 6% |
| Counties with discretionary sales surtax | All counties |
| Sales tax range | 0.5% to 1.5% |
| Maximum total Florida sales tax rate | 7.5% |
| Entities exempt from paying sales tax | Government agencies, some nonprofit organizations, merchants purchasing goods for resale |
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What You'll Learn
Florida's sales tax rate is 6%
In 1949, Florida adopted a 3% general sales tax, becoming the 27th state to do so. This initial sales tax applied to all consumers except for groceries purchased for human consumption and prescription drugs. Florida's sales tax rate has since increased to 6% as of 2025, with some counties charging an additional discretionary sales surtax or county tax ranging from 0.5% to 1.5%. This means that the highest total sales tax rate that can be charged in Florida is 7.5%.
The Florida Department of Revenue is responsible for administering tax law in the state, and it offers an online application to help businesses determine their tax registration requirements. The state's sales tax applies to every sale, admission, storage, or rental in Florida that is taxable. Certain items are exempt from sales tax in Florida, such as non-prepared food items sold at a grocery or market and certain services like installation and delivery charges.
Florida's tax code has been criticised for exacerbating racial, ethnic, and income inequities. Due to the state's dependence on sales taxes, which account for close to 80% of its general tax revenue, Black and Latina/o households in Florida pay the highest effective tax rates on average. This limits wealth accumulation in these communities.
To ensure compliance with Florida's sales tax regulations, businesses can utilise services like TaxCloud, which automatically collects sales tax on every transaction and charges the correct rate. Additionally, AvaTax provides street-level precision at the point of sale, eliminating the need for manual rate lookups. These tools help businesses navigate the varying local sales tax rates within the state, which can differ by county, city, or even ZIP code.
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Some goods are exempt from sales tax
Florida adopted a 3% general sales tax in 1949, becoming the 27th state to do so. The state's sales tax rate currently stands at 6%, with counties charging an additional discretionary sales surtax ranging from 0.5% to 1.5%. This means the highest total Florida sales tax rate that can be charged is 7.5%.
Some goods and services are, however, exempt from sales tax in Florida. These include:
- Most groceries (unless sold for immediate consumption)
- Prescription drugs
- Installation and delivery charges
- Custom software (delivered tangibly or electronically)
- Goods for resale, improvement, or as raw materials for manufacturing
- New machinery and equipment for manufacturers
- Repair parts and labor for machinery and equipment
- Utilities, including electricity and natural gas, consumed in production
- Nonprofit entities in healthcare
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Sales tax registration
Florida adopted a 3% general sales tax in 1949, becoming the 27th state to do so. The current state sales tax rate is 6%, with an additional county tax ranging from 0.5% to 1.5%, depending on the county. This means that the highest total Florida sales tax rate that can be charged is 7.5%.
If you are a business owner in Florida, you must register for sales tax to ensure your business remains compliant. The Florida Department of Revenue is responsible for administering tax law in the state and provides a helpful starting place to learn more about registering for Florida taxes. The Department offers an online application with an interactive wizard to help you determine your tax registration requirements. Alternatively, you can submit a paper application for your Florida sales tax license by downloading, filling out, and submitting the form.
If you run an e-commerce business, you will be liable for collecting sales tax in Florida if your business achieves Florida nexus. You can achieve nexus in Florida through physical nexus or economic nexus. Using a service like TaxCloud can help keep your e-commerce store sales tax compliant by automatically collecting sales tax at every transaction and charging the correct Florida sales tax rate.
It is important to note that Florida charges a general state sales tax on every sale, admission, storage, or rental in Florida that is taxable. However, certain items are exempt from state sales tax, such as most groceries and certain services like installation and delivery charges.
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Florida's sales tax law exacerbates racial, ethnic, and income inequalities
Florida's sales tax law, first enacted in 1949, has been criticised for exacerbating racial, ethnic, and income inequalities in the state. The law, which levies a 6% general state sales tax on most purchases, has been characterised as regressive, disproportionately affecting low- and moderate-income residents.
Florida's tax system has been ranked 48th for fairness, with its reliance on consumption taxes contributing to inequality. The state's failure to levy a personal income tax, which could help to mitigate inequality, has resulted in a heavy dependence on sales and excise taxes for revenue. This regressive tax structure disproportionately burdens lower-income households, who pay a larger share of their income in taxes compared to high-income households.
The impact of Florida's sales tax law is particularly acute for Black and Latina/o communities. Due to inequitable access to wealth-building opportunities, these households, on average, pay the highest effective tax rates in the state. This limits their ability to accumulate wealth and exacerbates existing racial and ethnic income disparities.
Furthermore, Florida's tax code does not offer an Earned Income Tax Credit (EITC) or any other tax credits for low-income workers to offset the high cost of sales and excise taxes. This compounds the challenges faced by low-income families, particularly those from racial and ethnic minority backgrounds, who are more likely to have lower incomes and less wealth than white households.
The inequitable nature of Florida's sales tax law is evident when compared to other states. While Florida ranks as the ninth highest-tax state for low-income families, it is considered a "low-tax" state overall, benefiting higher-income residents. This disparity underscores the regressive nature of the tax system and its contribution to widening income inequality and racial and ethnic inequities.
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Sales tax nexus
In 1949, Florida adopted a 3% general sales tax, with exemptions for groceries and prescription drugs. This sales tax was levied on all consumers, including those purchasing goods for immediate consumption. Florida thus became the 27th state to implement a sales tax.
There are two main types of sales tax nexus: physical nexus and economic nexus. Physical nexus is created when a business has a physical presence in a state, such as a store, warehouse, office, employees, or inventory. Economic nexus, on the other hand, is established when a business reaches a certain level of economic activity in a state, even without a physical presence. This could include sales, transactions, or revenue generated in that state. Each state may have its own unique definitions and rules for determining nexus, and these rules can change over time.
Other types of nexus include affiliate nexus, where a business has a relationship with another business that has a physical presence in a state, and click-through nexus, where a third-party seller or referral agent is involved. Nexus tax, or nexus fees/surcharges, refers to the tax imposed by states on businesses that have a sales tax nexus within their borders. This tax is typically calculated as a percentage of the total sales or revenue generated by the business within that state or jurisdiction.
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Frequently asked questions
Florida adopted sales tax by law in 1949.
Policymakers adopted a 3% general sales tax in 1949.
The current sales tax rate in Florida is 6%. However, local taxes are in addition to this base rate.
The seller is responsible for collecting sales tax and remitting it to state and local tax authorities.
Yes, some goods and customers are exempt from sales tax in Florida. Examples of exempt goods include most non-prepared food items, food stamps, and medical supplies. Exempt customers include government agencies, some nonprofit organizations, and merchants purchasing goods for resale.
