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Florida Corporate Income Tax

The Florida corporate income/franchise tax is imposed on all corporations for the privilege of conducting business, deriving income, or existing within Florida. Corporations, including entities that are taxed federally as corporations, are subject to the tax.

A corporation’s federal income, as adjusted by Florida additions, subtractions, and adjustments, is apportioned to Florida based on the corporation’s activities in Florida compared to its activities everywhere. In most cases, this comparison includes the corporation’s property, payroll and sales.

Who Must File?

  • All corporations (including tax-exempt organizations) doing business, earning income, or existing in Florida.
  • Every bank and savings association doing business, earning income, or existing in Florida.
  • All associations or artificial entities doing business, earning income, or existing in Florida.
  • Foreign (out-of-state) corporations that are partners or members in a Florida partnership or joint venture. A “Florida partnership” is a partnership doing business, earning income, or existing in Florida.
  • A limited liability company (LLC) classified as a corporation for Florida and federal income tax purposes is subject to the Florida Income Tax Code and must file a Florida corporate income/franchise tax return.
  • An LLC classified as a partnership for Florida and federal income tax purposes must file a Florida Partnership Information Return (Form F-1065 PDF Icon) if one or more of its owners is a corporation. In addition, the corporate owner of an LLC classified as a partnership for Florida and federal income tax purposes must file a Florida corporate income/franchise tax return.
  • A single member LLC disregarded for federal and Florida income tax purposes is not required to file a separate Florida corporate income tax return. The income must be reported on the owner’s return if the single member LLC is owned, directly or indirectly, by a corporation. The corporation must file a Florida corporate income/franchise tax return, reporting its own income and the income of the single member LLC, even if the only activity of the corporation is ownership of the single member LLC.
  • Homeowner and condominium associations that file the U.S. Corporation Income Tax Return (Federal Form 1120) must file Florida Corporate Income/Franchise Tax Return (Form F-1120 PDF Icon) or the Florida Corporate Short Form Income Tax Return (Form F-1120A) regardless of whether any tax may be due. If you file the U.S. Income Tax Return for Homeowners Associations (Federal Form 1120-H), you are not required to file a Florida return.
  • Political organizations that file Federal Form 1120-POL.
  • S corporations that pay federal income tax on Line 22c of Federal Form 1120S.
  • Tax-exempt organizations that have “unrelated trade or business income” for federal income tax purposes are subject to Florida corporate income tax and must file either Form F-1120 PDF Icon or Form F-1120A.

Tax Base and Rate

Florida corporate income/franchise tax is computed using federal taxable income, modified by certain Florida adjustments, additions, and subtractions, to determine adjusted federal income.

  • A corporation doing business outside Florida may apportion its total income. Adjusted federal income is usually apportioned to Florida using a three-factor formula. The formula is a weighted average, designating 25% each to factors for property and payroll, and 50% to sales.
  • You should add non-business income allocated to Florida to the Florida portion of adjusted federal income.
  • You should then subtract an exemption ($50,000 as of December 31, 2015) to arrive at Florida net income.
  • Finally, you should compute tax by multiplying Florida net income by 5.5%.

File and Pay Tax

Corporate income tax is reported using a Florida Corporate Income/Franchise Tax Return (Florida Form F-1120 PDF Icon). Corporations must file Florida Form F-1120 each year. The due date is based on the corporation’s tax year.

You can purchase “alternative” forms software and use it to prepare and file your paper return. A list of approved vendors PDF Icon is updated every January. Before using software, ask the vendor for proof that the forms in the software package have been approved by the Florida Department of Revenue.

Generally, Florida Form F-1120 is due the later of:

1. a. For tax years ending June 30, the due date is on or before the 1st day of the 4th month following the close of the tax year; or
 
b. For all other tax year endings, the due date is on or before the 1st day of the 5th month following the close of the tax year (e.g., Florida Form F-1120 is due on May 1, 2017, for a taxpayer with a taxable year end date of December 31, 2016).
 
2. The 15th day following the due date, without extension, for the filing of the related federal return for the taxable year.

A return must be filed, even if no tax is due. Find due dates PDF Icon for the current year.

The Florida Partnership Information Return (Form F-1065 PDF Icon) is due on or before the 1st day of the 4th month following the close of the tax year. Form F-1065 may be filed electronically.

Taxpayers who paid $20,000 or more in corporate income/franchise tax during the most recent state fiscal year (July 1 through June 30) are required to file and pay electronically (e-file) during the next calendar year. Form F-1120 must be filed through the Internal Revenue Service’s Modernized e-file (MeF) Program using approved software. Read more about electronic filing and payment of corporate income tax.

A corporation that owes no tax or less than $2,500 in tax may be eligible to file a Florida Corporate Short Form Income Tax Return (Form F-1120A). For more information, see the section Qualifications for Filing a Florida Corporate Short Form F-1120A.

If you file your return or pay tax late, a penalty of 10% of any unpaid tax for each 30 days or fraction thereof, not to exceed a total penalty of 50% of unpaid tax, is charged. If no tax is due, the penalty for a late-filed return is $50 per month or fraction thereof, not to exceed $300. A floating rate of interest applies to underpayments and late payments of tax. Interest rates can be found on our Tax and Interest Rates page.

Estimated Tax

If the corporation owes more than $2,500 in Florida corporate income tax annually, estimated tax payments must be made on a Declaration/Installment of Florida Estimated Income/Franchise Tax (Florida Form F-1120ES PDF Icon).

Generally, for tax years beginning prior to January 1, 2017, and for tax years ending June 30th, the declaration or payment of estimated tax is due on or before the last day of the 4th month, the last day of the 6th month, the last day of the 9th month and the last day of the tax year. For tax years beginning on or after January 1, 2017, that end other than June 30th, the declaration or payment of estimated tax is due on or before the last day of the 5th month, the last day of the 6th month, the last day of the 9th month, and the last day of the tax year.

Find due dates for the current year.

If you underpay estimated tax, a penalty of 12% per year is charged. For more information, see Underpayment of Estimated Tax (Florida Form F-2220 PDF Icon) and its instructions. A floating rate of interest applies to underpayments and late payments of tax. Interest rates can be found on our Tax and Interest Rates page.

Tax Incentives

There are several credits available against the corporate income tax. These include credits for paying salaries in Florida, credits for paying other taxes or assessments, and credits for making certain types of investments in Florida. See the Corporate Income Tax Incentives page for a comprehensive list. The Florida Corporate Income/Franchise Tax Return (Form F-1120 PDF Icon) and the instructions (Form F-1120N PDF Icon) also provide a list and explanation of available credits each year.

Qualifications to File a Florida Corporate Short Form F-1120A

A corporation that has zero tax due or owes less than $2,500 in tax may file the Florida Corporate Short Form Income Tax Return (Form F-1120A) if the corporation:

  • Has Florida net income of $45,000 or less
  • Conducts 100% of its business in Florida
  • Does not report any additions to and/or subtractions from federal taxable income other than a net operating loss deduction and/or state income taxes, if any
  • Is not included in a Florida or federal consolidated corporate income tax return
  • Claims no tax credits other than tentative tax payments or estimated tax payments
  • Is not required to pay Federal Alternative Minimum Tax

Florida Form F-1120A may be filed electronically.

Extensions of Time

To receive an extension of time to file your return, you must file a Florida Tentative Income/Franchise Tax Return and Application for Extension of Time to File Return (Form F-7004 PDF Icon) with your tax payment by the original due date of the Florida return. Form F-7004 may be filed electronically.

Extensions are valid for 6 months, with the exception of calendar tax year end extensions that are 5 months and June 30th tax year end extensions that are 7 months. An extension does not extend the due date for the payment. For partnerships, the extension allows 6 months from the due date of the return to file it.

If you underpay tentative tax, a penalty of 12% per year during the extension period is charged on the underpaid amount. The penalty is calculated from the original due date of the return. A floating rate of interest applies to underpayments and late payments of tax. Interest rates can be found on our Tax and Interest Rates page.

Florida Alternative Minimum Tax (AMT)

Florida alternative minimum tax (AMT) must be computed if the corporation paid federal AMT for the same tax year.

Compute Florida AMT by multiplying Florida alternative minimum taxable income by 3.3%. The tax due is whichever amount is greater: the regular Florida corporate income tax or the Florida AMT. In later years, corporations that paid AMT are allowed a credit.

The amount of the available credit carried over to later years is equal to the amount of Florida AMT paid over the amount of Florida “regular” tax that would have otherwise been due. The available Florida AMT credit that you may take in a tax year is limited to the amount of Florida “regular” tax that is due for that year over the Florida AMT calculated for that year.

Account Changes

You must notify the Florida Department of Revenue, if you:

  • change your business name;
  • change your mailing address;
  • change your location address within the same county;
  • close or sell your business; or
  • your business becomes active and you will sell or rent taxable property or services.

The quickest way to notify the Department is to update your account online.