Florida has no personal income tax and relies mainly on sales and property taxes. Its sales tax is close to the national middle, and its property tax rate is below average. The biggest change is still ahead: Amendment 3, approved by voters on November 3, 2026, raises the homestead exemption sharply from 2027 for people who already live in Florida. Here is how each tax works.
Where Florida tax money comes from
Share of state and local tax collections, fiscal year 2023, from the Tax Foundation.
“Everything else” includes documentary stamp taxes, fuel taxes, insurance premium taxes and tourist development taxes. There is no individual income tax.
Income tax: none for individuals
Florida does not tax wages, salaries, Social Security, pensions, retirement account withdrawals or investment income. You still pay federal income tax, Social Security (6.2% of wages up to $184,500 in 2026) and Medicare (1.45%). Corporations pay a 5.5% state corporate income tax; sole proprietors and most partnerships and S corporations do not.
For a single filer earning $75,000 with no pre-tax deductions, take-home pay in 2026 compares like this:
| State | State income tax | Take-home pay |
|---|---|---|
| Florida | $0 | $61,593 |
| Georgia | $3,270 | $58,323 |
| New York | $3,453 | $58,140 |
| Illinois | $3,568 | $58,025 |
From our Paycheck Calculator. Local income taxes, such as New York City’s, are not included.
Sales tax
The state sales and use tax is 6%. Most counties add a discretionary sales surtax, so the rate you pay depends on the county where the sale takes place. The population-weighted average combined rate is 6.98% (6% state plus 0.98% local), 28th highest of the 50 states and D.C. The county surtax applies only to the first $5,000 of the price of a single item, which keeps it small on cars, boats and other large purchases.
- Exempt: most groceries, prescription drugs and residential electricity.
- Taxed: most other goods, restaurant meals and short-term lodging (hotels and vacation rentals also pay county tourist development taxes).
- Commercial rent: Florida was the only state that taxed commercial rent; that tax ended on October 1, 2024.
See how Florida compares with every other state in our sales tax by state guide.
Property tax
Florida has no state property tax. Counties, cities, school boards and special districts set their own millage rates, and the county property appraiser sets each property’s value as of January 1. Homeowners pay an effective rate of about 0.78% of their home’s value. At that rate, a home worth the Florida median of $359,000 pays roughly $2,800 a year, before Amendment 3 takes effect.
Homestead exemption today (2026)
- The first $25,000 of assessed value is exempt from all property taxes, including school taxes.
- A second exemption of about $25,000, indexed to inflation, applies to assessed value above $50,000 for non-school taxes.
- Save Our Homes: the assessed value of a homestead can rise no more than 3% a year, or the rate of inflation if lower.
- Portability: when you move from one Florida homestead to another, you can transfer up to $500,000 of the Save Our Homes savings.
- Apply to your county property appraiser by March 1 for a home you owned and lived in on January 1.
What Amendment 3 changes
Voters approved Amendment 3 on November 3, 2026, with about 62% of the vote (60% was needed). According to the ballot summary:
| Year | Homestead exemption, non-school taxes | School taxes |
|---|---|---|
| 2026 | $50,000 (current rules) | $25,000 |
| 2027 | $150,000 | $25,000 |
| 2028 | $250,000 | $25,000 |
| 2029 and later | $250,000, adjusted for inflation | $25,000 |
- New residents: people who are not Florida residents on December 31, 2026 receive the existing exemption when they first qualify, and the larger exemption begins with their fifth year of homestead exemption. Counties and cities can shorten that wait with a two-thirds vote.
- Rental and commercial property: the yearly cap on assessment increases for non-homestead property drops from 10% to 5% for non-school taxes.
The Legislature and local governments still have to carry out parts of the amendment, so exact amounts on your bill will depend on your county. We will update this page as the rules are put in place.
Other Florida taxes
| Tax | Rate | Who pays |
|---|---|---|
| Corporate income tax | 5.5% | C corporations doing business in Florida |
| Documentary stamp tax on deeds | 70 cents per $100 of price (60 cents in Miami-Dade, plus a surtax on some sales) | Usually the seller, when real estate changes hands |
| Initial vehicle registration fee | $225 | First Florida plate for a vehicle |
| Estate and inheritance tax | None | — |
Frequently asked questions
What is the sales tax rate in Florida?
The state rate is 6%, and most counties add a surtax. The statewide average combined rate is 6.98%.
Does Florida tax retirement income?
No. Social Security, pensions, 401(k) and IRA withdrawals are not taxed by the state.
When is the Florida homestead exemption deadline?
March 1 for a home you owned and lived in as your permanent residence on January 1. Apply through your county property appraiser.
Do I get the $250,000 exemption if I move to Florida in 2027?
Not at first. Under Amendment 3, people who were not Florida residents on December 31, 2026 start with the existing exemption and qualify for the larger one beginning with their fifth year of homestead exemption, unless their county or city votes to shorten the wait.
Last updated: November 5, 2026.
Sources
- Tax Foundation: Florida tax data
- Tax Foundation: State and Local Sales Tax Rates, Midyear 2026
- Florida Department of Revenue: Sales and use tax
- Florida Department of Revenue: Property tax exemptions
- Florida Department of Revenue: Documentary stamp tax
- Florida Chamber of Commerce: Amendment 3 ballot summary and timeline
- CBS12: Amendment 3 passes with 62% of the vote
- WKMG News 6: How Florida’s newest property tax plan works
- Duval County Tax Collector: New resident information