Florida Sales Tax Rates

Total Range for 2024

6% – 8%

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Florida Sales Tax Variations

  • Prepared meals: Restaurant food, takeout, and catering services are taxed at 7.35%.
  • Hotel and vacation rentals: Short-term rentals of hotel rooms and vacation rentals are subject to a sales tax rate that can vary depending on the county. It typically ranges from 6% to 13%.
  • Amusement machine receipts: The tax on amusement machine receipts (e.g., video games, arcade games) is 4%.
  • Mobile homes: The retail sale of new mobile homes is taxed at a rate of 3%.
  • Electricity:  The sales tax rate on electricity can vary depending on the utility company and location. It’s typically around 6% but can be higher with additional fees.

Why do you need to collect sales tax in Florida?

If you’re selling goods and services in Florida then sales tax might apply! To determine your obligation, you must understand “nexus,” which ties businesses to states for tax purposes.

Two types of nexus exist:

  1. Physical Nexus: Having a physical presence, like an office, warehouse, or employees in Florida, triggers this type. If you do, you likely need to collect sales tax.
  2. Economic Nexus: This kicks in when your sales within Florida exceed a certain economic threshold. Even without a physical presence, surpassing this threshold requires collecting sales tax.

Is what you’re selling taxable in Florida?

Here’s our quick overview of whether or not what you’re selling will be taxable in Florida, but remember that there could be and are always exceptions to these rules:

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How to register for sales tax in Florida

 Florida offers two ways to register for a sales tax permit: online or mail-in.

  1. Go to: https://floridarevenue.com/Pages/default.aspx
  2. Click “Register to collect and/or pay taxes”
  3. Click “Florida Business Tax Application”
  4. Login or create a new user profile
  5. Provide details like your business name, address, Federal Tax ID (EIN), and business type.
  6. Carefully review your application for accuracy and then submit it electronically.

Mail-in Registration:

  1. You can also register for your sales tax by completing and submitting a paper Florida Business Tax Application (Form DR-1)
  2. Mail it to the Department of Revenue along with any required fees.

How to collect sales tax in Florida

  1. Know the Rate: Florida’s standard rate is 6.35%, but check for exceptions (e.g., prepared meals at 7.35%).
  2. Charge the Tax: Include the tax in the advertised price or use a POS system to calculate it automatically.
  3. Keep Records: Track your sales, taxable items, and collected tax.
  4. File and Pay Electronically: Use the portal to file returns (monthly, quarterly, or annually, depending on your sales volume) and pay any tax owed.

Example:

Say you’re selling a shirt priced at $10.00, with the Florida standard rate (6.35%) this will be your sales tax:

  • Sales tax amount = $10.00 x 6.35% = $0.64
  • Total price with tax = $10.00 + $0.64 = $10.64

FAQs

Do you have a physical nexus in Florida?

A business has physical nexus in Florida, which triggers sales tax collection obligations, if it has any of the following:

  • Physical Presence:
    • Owning or leasing an office, warehouse, or storefront in Florida.
    • Having employees (including salespeople or representatives) who are physically present in Florida for more than 2 days per year on business activities.
  • Inventory:
    • Storing goods in a Florida warehouse, even if it’s through a third-party fulfillment service (like Amazon FBA).
  • Real or Personal Property Ownership:
    • Owning land, buildings, vehicles, or other tangible property located in Florida.
  • Delivery of Merchandise:
    • Using your own vehicles to deliver products directly to Florida customers.
Do you have an economic nexus in Florida?

Even without a physical presence, you might still have nexus if your economic activity reaches a certain threshold (over $100,000 in gross sales). This is called economic nexus.

What is use tax in Florida?

In Florida, use tax applies to purchases where you didn’t pay sales tax but should have. Here’s a breakdown of use tax in the Sunshine State:

  • When it applies:
    • You buy something taxable in Florida without paying sales tax.
    • You buy something tax-exempt for resale, but then use it yourself.
    • You buy a taxable item outside Florida and bring it into the state (or have it delivered) without paying sales tax.
  • Use tax rate: The rate is generally 6%, the same as the state’s general sales tax rate.
Do you need a seller/reseller permit?

In Florida, you generally need a seller’s permit, also known as a sales tax permit, if your business is involved in:

  • Wholesaling
  • Retail sales
  • Repairing products
  • Selling certain services
  • Renting or leasing commercial property

There isn’t a separate reseller permit.  A seller’s permit acts as both a seller and reseller permit.

How to get a sales tax permit/license in Florida?

Florida offers two ways to register for a sales tax permit:

  • Online Registration: This is the recommended method as it’s faster and more convenient.  You can register through the Florida Department of Revenue’s website
  • Mail-in Registration: If online registration isn’t feasible, you can download and complete Form DR-1, Florida Sales Tax Registration Application, and mail it to the Department of Revenue along with any required fees.
When are Florida's Returns Due?

Florida’s sales tax returns and payments are due on the 1st and late after the 20th day of the month following each reporting period.

Here’s a breakdown for clarity:

  • Filing Frequency: You can choose to file monthly, quarterly, semi-annually, or annually.
  • Due Date: The return and payment are due on the 1st day of the month following the reporting period.
  • Late Payment: Payment becomes delinquent after the 20th day of the month following the reporting period.
How to file sales tax in Florida?

There are three main ways to file sales tax in Florida:

  1. File online: This is the recommended method by the Florida Department of Revenue. You can file through their Registration and Account Maintenance (RAM) portal: Florida’s RAM portal: [invalid URL removed].  This option allows you to electronically file your return and pay any tax due.
  2. File by mail: You can use Florida’s Sales and Use Tax Return (Form DR-15) to file and pay by mail.  You can find the form and instructions for completing it here: How to Complete Sales and Use Tax Return (Form DR-15): https://floridarevenue.com/taxes/tutorial/dr15/story.html
  3. Third-party tax service: There are various private companies that offer sales tax filing services. These can be helpful if you have a complex tax situation or would prefer not to handle the filing yourself.
Is anyone exempt from sales tax in Florida?

In Florida, there are no blanket exemptions from sales tax that apply to everyone. However, there are certain categories of items and situations where sales tax isn’t charged. Here are some examples:

  • Groceries: Sales tax doesn’t apply to unprepared food items for human consumption.  This includes fruits, vegetables, grains, meat, dairy products, and bakery goods.  However, prepared foods or restaurant meals are generally taxable.
  • Prescription drugs and medical devices: Prescription drugs and certain medical devices are exempt from sales tax.
  • Common household goods:  Sales tax isn’t charged on certain essential household items like soap, toilet paper, and feminine hygiene products.
  • Certain services: Most services in Florida are not taxable.  Exceptions include things like interior non-residential cleaning, pest control services, and private investigation services.
  • Non-profit organizations: Qualified non-profit organizations may be exempt from sales tax on purchases they make to fulfill their charitable purposes.  They typically need to apply for a Consumer’s Certificate of Exemption from the Florida Department of Revenue.
  • Governmental entities: State and local governments are exempt from sales tax on purchases they make for governmental purposes.
  • Manufacturing and agricultural equipment: Purchases of certain equipment used directly in manufacturing or agricultural production may be exempt from sales tax, depending on the specific circumstances.
  • Sales for resale: If you’re buying an item to resell later (without modifying it), you may be exempt from sales tax by providing a valid resale certificate to the seller.

Contact Yonda Tax Today

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