Florida small business taxes: Types, rates, deadlines, and how to file in 2025

Florida is a great place to open a business—and not just because of its warm weather and vibrant and diverse lifestyle. The Sunshine State has no personal income tax, a competitive 5.5% corporate income tax, and various tax incentives. All which adds up to an attractive environment for companies to establish, grow, and thrive.

While Florida's business tax climate is friendly, it's important for business owners to stay informed about state tax obligations and compliance requirements. This guide covers important topics such as handling payroll taxes and taking advantage of exemptions, credits, and incentives. Whether you’re starting a new business or optimizing your tax strategies, this resource is designed to help Florida small businesses gain insight into their tax responsibilities and manage taxes efficiently.

Refer to the table of contents below to quickly find the information that matters most to you:

• Taxes in Florida overview
• Key Florida business tax adjustments for 2025
• Florida state income taxes
• Types of business taxes in Florida
• Franchise taxes in Florida
• Florida business tax deductions, credits, and exemptions
• Types of Florida taxes for different business entity types
• How to file business taxes in Florida
• Year-end business tax checklist
• Commonly missed tax deductions and credits
• Common mistakes to avoid when filing business taxes in Florida
• Find an accountant to help prepare your Florida business taxes
• Frequently asked questions

Taxes in Florida overview

• Florida does not collect personal income tax
• Corporate tax income rate is 5.5%
• State sales tax is 6% but many counties imposes a discretional sales surtax
• Other business taxes may include unemployment taxes, excise taxes, and property taxes

Key Florida business tax adjustments for 2025

IRS extends deadlines due to Hurricane Milton

• The IRS has extended the tax filing deadline to May 1, 2025, for individuals and businesses in Florida affected by Hurricane Milton (beginning Oct. 5, 2024). 

Discretional sales surtax changes

• Several counties have adjusted surtax rates starting January 1, 2025, including Hamilton, Marion, and Martin counties.

Reemployment tax rate change

• New Florida employers start with a reemployment tax rate of 2.7% for 10 quarters, after which their rate is recalculated based on benefits charged and taxable payroll, with 2025 rates ranging from 0.1% ($7 per employee) to 5.4% ($378 per employee).

Florida state income tax

Florida does not have a personal income tax. It’s one of only seven states that doesn’t tax any type of personal income, including wages. 

However, there are payroll taxes, which include federal income tax withholding and taxes assessed for Social Security, Medicare, and unemployment compensation. There are also other taxes such as sales tax, property tax, and corporate income tax. 

What is the state income tax in Florida?

Florida has no individual income tax, making it a tax-friendly state for residents. 

Types of business taxes in Florida

As an employer in Florida, you may be responsible for reporting and paying other business taxes in addition to withholding payroll taxes from your employees' paychecks. From federal to state and local levels, understanding the different tax programs and their impact on your business’s finances is important.

Federal taxes

You'll be responsible for federal taxes in whatever state you open a business in. Unfortunately, there are dozens of federal tax forms with unique due dates and requirements. Using an accountant or small business accounting software can be helpful in avoiding mistakes that can lead to overpayment or penalties. 

As a business owner, you have both personal and business tax filing obligations. Here’s what you need to know:

Personal tax filing

Federal income tax returns:

Every individual is required to file and pay federal personal income tax. This forms the foundation of your overall tax responsibility.

Business tax filing

Business owners have additional filing requirements, depending on the business structure:

• Sole proprietorship: Income and expenses are reported on your personal tax return using Schedule C (Form 1040).
• Partnership: A partnership must file an information return (Form 1065) to report income, deductions, and other relevant details, while each partner reports their share of income on their personal return.
• Corporation: A corporation files a corporate tax return (Form 1120), paying taxes on its profits.
• S Corporation: An S corporation files an informational return (Form 1120S). Its income, losses, and deductions pass through to shareholders, who report them on their personal returns.
• Limited Liability Companies (LLCs): LLCs are not classified separately for federal tax purposes and are taxed based on their ownership structure. Single-member LLCs default to sole proprietorship taxation or may elect corporate taxation, while multi-member LLCs default to partnership taxation or may elect corporate taxation.

Self-employment tax

If you work for yourself and earn more than $400 a year, you pay toward Social Security and Medicare programs through a self-employment tax. The Social Security system provides retirement benefits, disability benefits, survivor benefits, and hospital insurance (Medicare) benefits.

Employment taxes

As an employer, you are responsible for withholding and depositing federal income tax and the employee contribution to Social Security and Medicare taxes. You must also pay the employer portion of Medicare and Social Security and pay federal unemployment tax (FUTA). 

State taxes

There is no state income tax, but it does collect several types of taxes to fund its government, such as excise taxes, franchise taxes, property taxes, and others. 

Florida corporate income tax

In Florida, corporations are subject to a 5.5% corporate income tax. However, each corporation can deduct a $50,000 exemption from its taxable income, meaning only income above $50,000 is taxed. It is actually a single corporate income/franchise tax imposed on corporations for the privilege of conducting business, deriving income, or existing within Florida.

This tax applies to corporations, including entities that are taxed federally as corporations. All corporations subject to Florida corporate income tax are required to file a return, regardless of their taxable income level.

What is the corporate tax rate?

The standard corporate income tax rate for C corporations in Florida is 5.5% on any profits over $50,000, but qualifying exemptions can reduce this rate significantly. 

How is the corporate income tax calculated?

Florida’s corporate income tax is 5.5% on taxable income over $50,000. Taxable income is determined by adjusting federal taxable income using a three-factor apportionment formula (25% payroll, 25% property, 50% sales). After applying the $50,000 exemption, the remaining taxable income is taxed at 5.5%, with potential credits reducing the final tax liability.

Who may be liable for the corporate income tax in Florida?

The following entities must file a corporate income tax return; however, only those with taxable income exceeding $50,000 will actually owe tax. 

• Corporations (including tax-exempt organizations) doing business, earning income, or existing in Florida.
• Banks and savings associations operating in Florida.
• Foreign corporations that are part of a Florida partnership or joint venture.
• LLCs taxed as corporations for federal tax purposes.
• LLCs taxed as partnerships if any owner is a corporation (corporate owner must file).
• Single-member LLCs owned by corporations (income reported on the corporate return).
• Homeowner and condominium associations filing Federal Form 1120.
• Political organizations filing Federal Form 1120-POL.
• S corporations paying federal tax on Form 1120S, Line 23c.
• Tax-exempt organizations with unrelated business income for federal tax purposes.

Businesses that have nexus in Florida—meaning a sufficient connection to the state through physical presence, employees, property, or business activities—are subject to this requirement. 

See the Florida Department of Revenue for additional information. 

Franchise taxes in Florida

In Florida, the corporate income tax and franchise tax are combined in a single tax. 

Excise tax

Excise taxes are special taxes imposed on specific goods or services. In Florida, excise taxes are levied on specific goods and services, including:

• Alcoholic beverages: In Florida, alcoholic beverages are taxed based on their alcohol content. For example, drinks with 17.259% to 55.78% alcohol (excluding wine) are taxed at $6.50 per gallon; drinks with more than 55.78% alcohol are taxed at $9.53 per gallon.
• Tobacco products: Excise taxes apply to cigarettes, cigars, and other tobacco products, often calculated based on quantity or weight. Packages containing more than 10 but not more than 20 cigarettes have a up to a $2 surcharge depending on the cigarette's size and weight.
• Motor fuel: Florida levies a combination of state and local taxes on motor fuels like gasoline and diesel. As of 2025, the total statewide tax on motor fuel is approximately 37.325 cents per gallon, which includes excise taxes, sales taxes, and other applicable fees.

For detailed and up-to-date information on Florida's excise tax rates, please refer to the Florida Department of Revenue's official publications.

Reemployment tax

Most businesses with employees in Florida are required to pay reemployment tax. This tax is collected by the Florida Department of Revenue and placed in an Unemployment Compensation Trust Fund to provide financial assistance to employees who were laid off through no fault of their own and are available for work. Only the first $7,000 earned by an employee is subject to reemployment tax.

New employers in Florida start with a reemployment tax rate of 2.7%, which remains fixed for the first 10 quarters. After that, the rate is recalculated based on benefits charged and taxable payroll from the first seven of the last nine quarters. For 2025, reemployment tax rates range from:

• Minimum: 0.1% (0.0010) or $7 per employee
• Maximum: 5.4% (0.0540) or $378 per employee

A 5.4% rate may be assigned to delinquent employers (over one year) or those who fail to provide required work records. Employers receive annual rate notices from the state.

Log in to the Department's Reemployment Tax efile and pay website to view your tax rate.

Local taxes

Some towns, cities, and other jurisdictions in Florida collect additional taxes to build and repair vital infrastructure and fund essential services like schools and police departments. Florida law allows jurisdictions to collect local taxes to pay for:

• County or regional transportation systems
• Public hospitals
• Emergency fire and rescue services
• Local government infrastructure
• Capital investment in schools
• Indigent care that has been approved by voters

Sales and use taxes

Businesses in Florida must pay sales or use taxes on all taxable goods and services. Florida has a state sales tax of 6%, but many counties impose a discretionary sales surtax, also known as a local option sales tax. This surtax applies to most transactions subject to the state sales tax, resulting in a combined rate that varies by county. For example, as of January 1, 2025, Martin County's total sales tax rate increased to 7%, comprising the 6% state rate and a 1% local surtax.

Businesses are responsible for collecting both the state sales tax and any applicable local surtax from customers. The Florida Department of Revenue administers the collection and distribution of these taxes to the respective counties. To determine the current surtax rate in a specific county, refer to the Discretionary Sales Surtax Rate Table.

Remote seller tax considerations

Florida requires remote sellers—businesses outside the state selling tangible personal property to Florida customers—to register, collect, and remit Florida sales tax if they have a substantial number of remote sales. This is defined as sales exceeding $100,000 in the previous calendar year. Remote sellers meeting this threshold must also collect any applicable discretionary sales surtax based on the delivery location within Florida.

Registration and tax payments can be completed electronically through the Florida Department of Revenue's online system. 

Note about marketplace sellers:  A marketplace provider (e.g., Amazon or eBay) must register, collect, and remit Florida sales tax on behalf of their sellers for all taxable sales delivered into Florida if their combined sales exceed $100,000 in the previous calendar year. If the marketplace provider collects the tax, individual sellers do not need to collect it for those sales.

The state collects a use tax when sales tax is not paid on taxable goods or services at the time of purchase. Use taxes must also be paid when tax-exempt items are resold. Companies that collect and pay sales or use taxes in Florida must register with the state's Department of Revenue. Most businesses register and pay their sales and use taxes online.

Property taxes

Property taxes are the primary source of income for local governments in Florida. County assessors determine property taxes in Florida, which vary considerably. Many states that do not collect an income tax have relatively high property tax rates, but that general rule does not apply in Florida. In 2023, the average Florida resident paid less than 1% of their property's value in tax. 

Florida business tax deductions, credits, and exemptions

Florida offers a range of business tax deductions, credits, and exemptions aimed at reducing taxable income and incentivizing specific economic activities. These state-level incentives can significantly lower a business's overall tax burden. Some programs in place include:

• Experiential Learning Tax Credit: Businesses can earn an Experiential Learning Tax Credit of $2,000 for each student intern, apprentice, or pre-apprentice with a $10,000 cap.
• Individuals with Unique Abilities Tax Credit: This tax credit allows employers to deduct $1 for each hour of work performed by individuals with certain physical or intellectual impairments. 
• Rural Job Tax Credit: This incentive provides a tax credit of between $1,000 and $1,500 per employee for businesses located in rural areas.
• Urban Job Tax Credit Program: The Urban Job Tax Credit Program offers eligible businesses a tax credit of between $500 and $2,000 per employee for businesses in urban areas.
• Florida Research and Development Tax Credit: Florida offers a corporate income tax credit for businesses with qualified research expenses, provided they have received the federal R&D tax credit. Applications for the 2025 credit allocation open on March 20, 2025, through the Florida Department of Revenue.

Credits and exemptions for Florida sales tax 

In Florida, certain businesses and activities qualify for sales tax exemptions or credits, offering significant savings on purchases directly tied to their operations.

Machinery and equipment tax exemptions

Florida offers sales tax exemptions on machinery and equipment used in:

• Manufacturing
• Recycling
• Pollution control
• Research and development
• Specialized industries like semiconductor, defense, and space technology. 
• Businesses may also qualify for exemptions on:
• Repair labor and materials
• Postharvest agricultural equipment
• Recycling roll-off containers

Most exemptions require an exemption certificate or registration with the Florida Department of Revenue.

Energy and utilities

• Boiler fuels – Sales tax exemption for fuels used in manufacturing, except for businesses regulated by the Division of Hotels and Restaurants.
• Agricultural electricity – Exemption for electricity used in farming, packing, and processing but not for retail sales locations.
• Manufacturing electricity and steam – Certain industries can purchase tax-exempt electricity or steam for operating machinery, pollution control, and recycling.
• Natural gas for fuel cells – Exemption for natural gas used in non-combustion fuel cells for stationary equipment.
• Solar energy systems – Tax exemption for solar panels, power conditioning equipment, and energy storage units certified by the Florida Solar Energy Center.

Most exemptions require an exemption certificate issued to the provider or seller.

Florida entertainment industry

A point-of-sale sales tax exemption is available to qualified production companies producing content in Florida.

Government entities

Florida exempts state, county, municipal, and political subdivisions (e.g., school districts, libraries) from sales and use tax. To qualify, they must obtain a Consumer’s Certificate of Exemption from the Florida Department of Revenue. Federal agencies are automatically exempt from. 

Nonprofit organizations

Nonprofit 501(c)(3) organizations in Florida can qualify for a sales tax exemption but must apply for a Consumer’s Certificate of Exemption from the Florida Department of Revenue. The exemption applies only to purchases made with the organization's funds for charitable, educational, or religious purposes. Personal reimbursements and items for resale or unrelated activities are not exempt.

Types of Florida taxes for different business entity types

Florida allows entrepreneurs to establish sole proprietorships, partnerships, LLCs, C corporations, and S corporations, and the business structure they choose will determine what type of taxes they pay.

Corporate income tax applies to taxable income over $50,000.

Florida sales tax

The sales tax rate in Florida is 6% for most goods and services, but some of the state's more than 362 tax jurisdictions collect additional sales taxes, known as discretionary sales surtax or local option county sales tax. This can bring the total sales tax rate higher in certain areas. In addition, some products and services are taxed at slightly different rates, such as:

• 3% on mobile home sales
• 4% on income from amusement machines
• 2% on commercial property leases and rentals
• 6.95% on electricity

Most services are not taxable in Florida, but there are several notable exceptions, including the following: 

• Nonresidential cleaning services
• Nonresidential pest control services
• Communications services
• Burglary prevention or security services
• Trade show, exhibition, or convention ticketing services
• Vehicle or machinery rental services
• Vacation property rental services

Tax rates and regulations can change. Be sure to check the most current information from the Florida Department of Revenue for specific situations.

Do you need a sales tax permit? 

If you operate a business in Florida that sells or leases tangible personal property or provides taxable services, you are required to register with the Florida Department of Revenue to collect, report, and remit sales and use tax before you begin to operate. Registration can be completed online.

How to file business taxes in Florida

Most businesses in Florida are expected to complete and submit tax returns each year even if they are not required to pay income tax. Before submitting tax forms, a business must obtain an Employer Identification Number. This is basically the equivalent of a Social Security number for a business. It is also a good idea for business owners to consult a tax preparation checklist before filing the paperwork. Small business owners should not overlook this task as filing deadlines are strict, and the penalties for filing late or not at all can be severe.

When are taxes due in Florida?

In Florida, businesses are subject to various tax obligations, each with specific due dates.

Federal tax relief for Florida hurricane victims

The IRS has extended the tax filing deadline to May 1, 2025, for individuals and businesses in Florida affected by Hurricane Milton (beginning Oct. 5, 2024). This applies to residents and businesses in all Florida counties, combined with earlier tax relief for people in counties affected by Hurricane Debby and Hurricane Helene.

Who qualifies?

• Individuals and businesses in all Florida counties.
• Those with federal returns due in March or April 2025.
• 2023 returns on valid extension (payment deadlines remain unchanged).
• Quarterly estimated tax payments due Jan. 15 and April 15, 2025.
• Payroll & excise tax returns due Oct. 31, 2024, Jan. 31, and April 30, 2025.

For more details, visit the IRS website.

Corporate income tax deadlines:

• Fiscal year ending June 30: File and pay any tax due by October 1.
• Fiscal year ending on other dates: File by the first day of the fifth month after the fiscal year ends. For example, if the fiscal year concludes on July 31, the filing deadline is December 1.

See a complete listing of corporate income tax due dates through 2026. 

Sales and use tax filing due dates

• Monthly filers: Businesses collecting more than $1,000 in sales tax annually must file monthly returns.
• Annual filers: Businesses collecting less than $100 in sales tax annually are required to file only once per year.

Estimated tax payments

Corporations with an annual income tax liability exceeding $2,500 are required to make estimated tax payments. These payments are typically due in four installments:

• For tax years ending on June 30: Payments are due by the last day of the 4th, 6th, and 9th months of the taxable year, and the last day of the tax year.
• For all other tax year endings: Payments are due by the last day of the 5th, 6th, and 9th months of the taxable year, and the last day of the tax year.

Each installment should be 25% of the estimated tax liability. Failure to make timely estimated payments may result in interest and penalties. For detailed information, refer to the Florida Department of Revenue's guidelines on corporate income tax.

Year-end business tax checklist

Stress less during tax season. Use this small business tax checklist to ensure you have everything you need to stay organized throughout the year and file your taxes accurately and on time:

Year-round business tax preparation

• Maintain accurate records: Keep detailed records of all income and expenses throughout the year.
• Categorize expenses: Organize your expenses into relevant categories for easier tax preparation.
• Reconcile bank accounts: Regularly reconcile your bank accounts to ensure accuracy and identify any discrepancies.
• Track mileage: If you use your vehicle for business purposes, keep a detailed mileage log.
• Stay informed: Keep up-to-date on federal and state tax laws and regulations that might affect your business.

Pre-filing checklist

• Gather necessary forms and documents:
• Previous year's tax returns (up to three years prior for both state and federal)
• Accounting journals and ledgers
• Balance sheet and income statement
• Transactional supporting documents (bank deposit slips, bank statements, invoices, checkbook, credit card statements)
• Vehicle and mileage logs
• Expense receipts
• Employee tax forms (W-9, I-9, W-2, 1099)
• Non-employee tax forms (1099-MISC)
• State tax forms
• List of home office deductions (if applicable)
• Understand which tax forms to file: Determine the specific tax forms required for your business structure and tax obligations.
• Review and verify information: Double-check all information for accuracy before filing.
• Consider estimated taxes: If required, calculate and pay estimated taxes throughout the year.

Filing and beyond

• File your tax returns: Submit your tax returns electronically or by mail before the deadline.
• Request filing extensions (if needed): If you need more time to file, request an extension before the deadline.
• Keep copies of your tax returns: Store copies of your filed tax returns for future reference.
• Plan for next year: Start organizing your records and planning for the next tax season.

Commonly missed tax deductions and credits

Take advantage of valuable tax breaks. Many small businesses overlook possible deductions and credits that could significantly reduce their tax liability. Be sure you claim all the deductions and credits you qualify for.

Common business tax deductions

• Advertising
• Depreciation of assets
• Employee salaries and benefits
• General business expenses
• Home office expenses
• Insurance
• Business loan interest
• Internet and phone services
• Legal services
• Licenses
• Meals and entertainment (for business purposes)
• Business-related travel and mileage expenses
• Commercial property rent 
• Training and education
• Cost of goods sold (COGS)
• Business banking fees

Proper documentation and recordkeeping are essential to justify deductions in case of an audit. Consulting a tax professional can help ensure compliance with tax laws and maximize your eligible deductions.

Small business tax credits

Take time to familiarize yourself with the variety of business tax credits that may be available to you. Here are some common ones: 

• Alternative Motor Vehicle Credit for electric cars and hybrids used for business
• Disabled Access Credit for expenses related to improving accessibility
• Investment Credit, including credits for energy, reforestation, and rehabilitation projects
• Paid Family and Medical Leave Credit for eligible employers providing paid leave
• Small Employer Health Insurance Premiums Credit for employers with fewer than 25 employees contributing to health insurance premiums
• Work Opportunity Credit for businesses hiring individuals from targeted groups

For a complete list of federal tax credits and detailed eligibility requirements, visit the IRS website.

In addition to the federal tax incentives, consider if you could qualify for ones specifically for Florida businesses, such as:

• Insurance premium tax incentives. Insurance companies in Florida can receive a tax credit of up to 15% of employee salaries against insurance premium taxes and fees. To qualify, employees must work in insurance-related roles, be based in Florida, and be covered under Florida’s Reemployment Assistance Program.
• Capital investment tax credit. Businesses in high-impact sectors (such as silicon technology, transportation, or solar panel manufacturing) can qualify for a tax credit if they invest at least $25 million in a certified project. The credit allows businesses to claim up to 5% of eligible capital costs annually for up to 20 years. Certification is required through the Florida Department of Commerce.
• Contaminated Site Rehabilitation Tax Credit (Voluntary Cleanup Tax Credit). Businesses that voluntarily clean up brownfield sites or dry-cleaning solvent contamination can receive a tax credit for 50% of rehabilitation costs, up to $500,000 per site per year. The credit must be approved by the Florida Department of Environmental Protection and can be carried forward for up to five years.

Where do I send my Florida tax reports and payments?

The Florida Department of Revenue allows businesses to submit tax forms and make tax payments online using U.S. funds. Checks or money orders should be made payable to the Florida Department of Revenue. C corporations that pay $5,000 or more each year in state income tax must file their taxes electronically and submit quarterly payments to the Florida Department of Revenue.

Should I file and pay by paper or electronically?

You can fill out paper forms and mail checks to pay your business taxes in Florida, but taking care of these matters electronically will save you time. However, certain businesses are required to file electronically, including:

• Businesses filing consolidated sales and use tax returns
• Businesses that paid $5,000 or more in state taxes (July 1 - June 30 of the prior fiscal year)
• Employers with 10+ employees in any quarter of the previous state fiscal year
• Licensed fuel industry businesses (terminal suppliers, operators, wholesalers/importers, petroleum carriers, exporters, blenders)

If you cannot file electronically, call Taxpayer Services at 850-488-6800 to request a waiver. However, all tax payments must be made electronically, even if filing is waived. Learn more about filing and paying taxes electronically.

Common mistakes to avoid when filing business taxes in Florida

Managing business taxes may seem complicated, but with some preparation, you can stay on track and avoid mistakes. Here are some common pitfalls to watch out for:

Misclassifying workers

Make sure you're correctly classifying your workers as employees or independent contractors. Misclassification can lead to hefty penalties and back taxes.

Missing deductions

Don't leave money on the table. Explore all eligible deductions, such as those for home office expenses, business travel, and equipment purchases.

Forgetting about the corporate income tax

Remember that Florida has a corporate income tax, which is a tax on net income for corporations. Make sure you understand the filing requirements and deadlines. And keep in mind that corporations must file a corporate income tax return even if no tax is due.

Overlooking sales tax

If your business sells taxable goods or services, ensure you're collecting and remitting sales tax correctly. Florida has varying local rates, so stay informed.

Failing to pay estimated taxes

If you expect to owe a significant amount in taxes, make sure you're paying estimated taxes throughout the year to avoid penalties.

By staying organized, understanding the tax laws, and seeking professional advice when needed, you can manage your Florida tax responsibilities with confidence and keep your business on the path to success.

Find an accountant to help prepare your Florida business taxes

While Florida lacks state income taxes, managing business tax filings can still be complex. Because of the importance of correct filing to avoid overpayments or fines, consider hiring an experienced accountant or bookkeeper who’s knowledgeable about tax issues and Florida tax laws and codes. 

In Florida, there are no state-specific licensing requirements for tax preparers. However, you should ensure your chosen professional: 

• Meets IRS requirements
• Has a Preparer Tax Identification Number (PTIN) and an Electronic Filing Identification Number (EFIN)
• Completed the Annual Filing Season Program (AFSP), which covers topics such as new tax laws, filing requirements, ethics, and professional conduct

Find an accountant in Florida here, and consider using the right small business accounting software to streamline your finances and ensure you're prepared for tax season with accurate reporting.

Disclaimer: 

This content is for information purposes only and information provided should not be considered legal, accounting or tax advice or a substitute for obtaining such advice specific to your business. Additional information and exceptions may apply. Applicable laws may vary by state or locality. No assurance is given that the information is comprehensive in its coverage or that it is suitable in dealing with a customer’s particular situation. Intuit Inc. does not have any responsibility for updating or revising any information presented herein. Accordingly, the information provided should not be relied upon as a substitute for independent research. Intuit Inc. cannot warrant that the material contained herein will continue to be accurate, nor that it is completely free of errors when published. Readers should verify statements before relying on them.