Sales Tax
Each sale, admission, storage, or rental in Florida is taxable, unless the
transaction is exempt. Sales tax is added to the price of taxable goods or
services and collected from the purchaser at the time of sale.
Florida's general state sales tax rate is
6%
with the following exceptions:
- Retail sales of new mobile homes - 3%
- Amusement machine receipts - 4%
- Rental, lease, or license of commercial real property - 2%
- Electricity - 6.95%
Use Tax
Use tax is due on the use or consumption of taxable goods or services when
sales tax was not paid at the time of purchase. For example:
-
If you buy a taxable item in Florida and did not pay sales tax, you owe
use tax.
-
If you buy an item tax exempt intending to resell it, and then use the
item in your business or for personal use, you owe use tax.
-
If you buy a taxable item outside Florida and bring it into (or have it
delivered into) Florida, and you did not pay sales tax on the item, you
owe use tax.
Discretionary Sales Surtax
Many Florida counties have a
discretionary sales surtax
(county tax) that applies to most transactions subject to the sales or use
tax. The county surtax rate applies to a taxable item or service delivered
into a county imposing a surtax. (The surtax rate that applies to motor
vehicles and mobile homes is determined by the home address of the
purchaser.) For a list of discretionary sales surtax rates, visit the
Department's Forms and Publications webpage and select the current year
Discretionary Sales Surtax Information
(Form DR-15DSS) under the
Discretionary Sales Surtax
section, updated yearly in November.
For certain transactions, only the first $5,000 of a taxable sale or
purchase is subject to the discretionary sales surtax.
Transient Rental Taxes
In addition to state sales and use tax and discretionary sales surtax,
Florida law allows counties to impose local option transient rental taxes
on rentals or leases of accommodations in hotels, motels, apartments,
rooming houses, mobile home parks, RV parks, condominiums, or timeshare
resorts for a term of six months or less. For a list of local option
transient rental taxes, visit the Department's
Local Option Taxes
webpage.
In many counties, the local transient rental taxes are reported and
remitted directly to the local government; however, sales tax and
discretionary sales surtax on transient rentals are always reported and
remitted to the Department. View a list of the
Local Option Transient Rental Tax Rates (Tourist Development Tax
Rates)
(Form DR-15TDT
).
Who Must Pay Tax
Before you begin business in Florida, you must first find out if your
business activity or products will be subject to sales and use tax. If
it is, you must register to collect sales tax or pay use tax. Here is a
partial list of business activities that require you to register with
the Florida Department of Revenue:
- Sales of taxable items at retail
- Repairs or alterations of tangible personal property
-
Rentals, leases, or licenses to use real property (for example:
commercial office space or mini-warehouses)
-
Rentals of short-term living accommodations (for example: motel/hotel
rooms, beach houses, condominiums, timeshare resorts, vacation houses,
or travel parks)
-
Rentals or leases of personal property (for example: vehicles,
machinery, equipment, or other goods)
-
Charges for admission to any place of amusement, sport, or recreation
- Manufacturing or producing goods for retail sales
- Selling service warranty contracts
- Operating vending or amusement machines
-
Providing taxable services (for example: investigative and crime
protection services, interior nonresidential cleaning services, or
nonresidential pest control services)
-
Out-of-state businesses selling into Florida that have any number of
transactions with total sales over $100,000 in the prior calendar year
- Marketplace providers facilitating remote sales into Florida
How Tax is Calculated
Sales tax and discretionary sales surtax are calculated on each taxable
transaction.
Effective July 1, 2021, businesses that collect and remit sales and use
taxes to the Florida Department of Revenue must use a rounding algorithm
when calculating the sales tax due on a transaction. Using this
algorithm, the computation of the tax must be carried to the third
decimal place; if the third decimal place is greater than 4, the tax
must be rounded up to the next cent.
Businesses may apply the rounding algorithm to the aggregate tax amount
computed on all taxable items on an invoice or to the taxable amount on
each individual item on the invoice. Use of the rounding algorithm takes
effect July 1, 2021, and businesses have until September 30, 2021 to
update their point-of-sale systems.
For additional information on rounding, review Tax Information
Publication (TIP)
#21A01-02, “Rounding to Replace ‘Bracket System’ in Calculation of Sales and Use
Taxes.”
Any person making taxable sales in Florida must separately state Florida
sales tax on each customer’s invoice, sales slip, receipt, billing, or
other evidence of sale. The sales tax and discretionary sales surtax may
be shown as one total, or the sales tax and surtax may be shown
separately.
Effective tax rates and rate divisors may be used by certain industries
when it is impractical to separately state Florida sales tax on an
invoice, sales slips, receipt, billing, or other evidence of a sale.
These industry specific effective tax rates and rate divisors, and
instructions for computing sales tax and discretionary sales surtax are
available in the following brochures:
-
Sales and Use Tax on Alcoholic Beverages
(GT-800046
)
-
Sales and Use Tax on Amusement Machines
(GT-800020
)
-
Sales and Use Tax on Concession Stands
(GT-800003
)
-
Sales and Use Tax on Vending Machines
(GT-800041
)
Taxes on Remote Sales
Effective July 1, 2021, Florida law requires businesses making remote
sales into the state to collect and electronically remit sales and use
tax, including any applicable discretionary sales surtax, on those
transactions if the business has made taxable remote sales in excess of
$100,000 over the previous calendar year.
Examples of remote sales are:
- Purchases made through the internet
- Mail-order catalog purchases
- Purchases made in another country
- Furniture purchased from dealers located in another state
-
Computer equipment ordered from out-of-state vendors advertising in
magazines
Many out-of-state businesses, such as large internet retailers, already
collected and remitted sales and use taxes to the Florida Department of
Revenue prior to passage of
Chapter 2021-2, Laws of Florida.
Additionally, effective July 1, 2021, marketplace providers are required
to electronically register to collect and electronically remit sales and
use tax on taxable sales they facilitate for marketplace sellers for
delivery into Florida. A separate electronic registration application is
required for each place of business located within Florida. Out-of-state
businesses can submit one application for all out-of-state locations.
The information required in this electronic application is provided in
the
Florida Business Tax Application for Marketplace Providers and Remote
Sales
(DR-1MP).
For additional information on remote sales, review Tax Information
Publication (TIP)
#21A01-03, “New Registration Requirement for Persons Making Remote Sales and for
Marketplace Providers and Sellers.”
Tips for Filing Your Return
-
File on time for each reporting period even if no tax
is due. Don't skip reporting periods or add a partial reporting period
to the next return.
-
Sign up
to receive due date reminder emails
every reporting period. These emails are a convenient resource to help
you meet your filing obligation.
-
Sales reported on lines A through E of the
Sales and Use Tax Return (Form DR-15
) may have different tax rates.
Enter your transactions on the right lines so no
additional tax will be due.
-
Compute the correct sales tax, including discretionary sales
surtax
(county tax), if any.
-
Complete all information on your return, including front and back.
Be sure to include
your signature and your preparer's signature.
-
If you are reporting discretionary sales surtax (county tax)
collected, you must complete the back of your return.
Need more information? Take our tutorial
How to Calculate, Collect, and Report Your Discretionary Sales
Surtax.
-
Don't include tax collected in gross sales. If you
include the tax collected in gross sales, it will increase the amount
of tax due and you will receive a bill for additional tax due.
-
When you electronically file and pay on time,
you may take a collection allowance. Be sure to calculate it
correctly.
The collection allowance is 2.5% (.025) of the first $1,200 of tax
due, not to exceed $30 for each reporting location. If you have less
than $1,200 in tax due, your collection allowance will be less than
$30.
Registration and Account Changes
Businesses must register each location to collect, report and pay sales
tax. You can register using the
online registration
system or submit a paper
Florida Business Tax Application
(Form DR-1
).
Effective July 1, 2021, Florida law requires businesses making remote
sales into the state to collect and electronically remit sales and use
tax, including any applicable discretionary sales surtax, on those
transactions if the business has made taxable remote sales in excess of
$100,000 over the previous calendar year. Additionally, effective July
1, 2021, marketplace providers are required to register to collect and
electronically remit sales and use tax on taxable sales they facilitate
for marketplace sellers for delivery into Florida.
If you hold an active certificate of registration or reemployment tax
account issued by the Department because you previously submitted a
Florida Business Tax Application
(Form DR-1), use the
Application for Registered Businesses to Add a New Florida
Location
(Form DR-1A
)
to register:
- An additional business location or Florida rental property, or
-
A registered location that has moved from one Florida county to
another.
For more information on submitting an application, see
Registering Your Business
(Form DR-1N
).
Once registered, you will be sent a
Certificate of Registration
(Form DR-11), a
Florida Annual Resale Certificate for Sales Tax
(Form DR-13), and tax return forms. If you are registered to pay use tax
only, you will not receive a resale certificate. The
Certificate of Registration must
be displayed in a clearly visible place at your business location.
When to Notify the Department
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 of these changes is to update
your account
online.
When to Submit a New Tax Application
You must submit a new registration using the
online registration
system or complete a paper
Florida Business Tax Application
(Form DR-1
) if you:
- Change your legal entity; or
- Change the ownership of your business.
File and Pay Tax
Sales and use tax is generally reported on the
Sales and Use Tax Return (Form DR-15
). Form DR-15, instructions (Form DR-15N
) and other sales and use tax forms and publications are available on
the Department's Forms and Publications webpage under
Sales and Use Tax.
You may file returns and pay tax electronically using the Department's
free and secure
File and Pay
webpage, or you may purchase software from a
vendor
.
Electronic File and Pay (eFile and ePay) Requirement
Some businesses must file and pay sales and use tax electronically. If a
business paid $5,000 or more in sales and use tax during the State of
Florida’s prior fiscal year (July 1 - June 30), that business is
required by law to file and pay sales and use tax electronically during
the next calendar year beginning with the January tax return (filed in
February).
Taxpayers who are obligated to file and pay sales and use tax
electronically but fail to do so are subject to a $10 penalty for
failure to file a return electronically and a $10 penalty for failure to
pay electronically. These $10 penalties are in addition to any other
penalty that may apply.
General Due Date
Sales and use tax returns and payments are due on the 1st and late after
the 20th day of the month following each reporting period. For example,
if you make a sale in January and your returns and payments are due
monthly, your return and payment for the January reporting period are
due February 1 and late after February 20; however, if your returns and
payments are due quarterly, your return and payment for the reporting
period January – March are due April 1 and late after April 20.
A return must be filed for each reporting period, even if no tax is
due.
If you electronically pay or electronically file and pay at the same
time, you must initiate your electronic payment and receive a confirmation
number no later than 5 p.m. ET on the business day prior to the 20th day
of the month to avoid penalty and interest. For a list
of the electronic payment deadlines, visit the Department's Forms and
Publications webpage and select the current year
Florida eServices Calendar of Electronic Payment Deadlines
(Form DR-659) under the
eServices
section.
If you electronically file a return without, or separately from, a
payment, and the 20th falls on a Saturday, Sunday, or state or federal
holiday, your return is timely if you receive a confirmation number for
the applicable electronically filed return on or before the first
business day following the 20th.
When you electronically file your sales and use tax return and
electronically pay timely, you are allowed to deduct a collection
allowance. The collection allowance is 2.5% (.025) of the first $1,200
of tax due, not to exceed $30.
If you file paper returns and the 20th falls on a
Saturday, Sunday, or state or federal holiday, your return and payment
are considered timely if postmarked or hand-delivered on the first
business day following the 20th.
You can
sign up
to receive due date reminder emails for every reporting period. These
emails are a convenient way to help you file and pay timely. If you file
your return or pay tax late, a late filing penalty of 10% of the amount
of tax owed, but not less than $50, may be charged. The $50 minimum
penalty applies even if no tax is due.
A floating rate of interest applies to underpayments and late payments
of tax. Interest rates can be found on the Department's
Tax and Interest Rates
webpage.
Filing Frequency
Most new businesses are set up to file and pay sales and use tax
quarterly. Depending on the amount of tax you collect, you may qualify
for a different filing frequency.
Filing Frequency Limits
Annual Sales Tax Collections |
Return and Payment Filing Requirement |
More than $1,000 |
Monthly |
$501 - $1,000 |
Quarterly |
$101 - $500 |
Semiannual |
$100 or less |
Annual |
If you qualify and would like to change your filing frequency, call the
Department's Taxpayer Assistance at 850-488-6800 Monday-Friday,
excluding holidays.
Address/Jurisdiction Database
The Florida Department of Revenue's
Address/Jurisdiction Database
identifies the county for addresses in Florida. The database has an
address look up feature that can be used to find the sales tax and
discretionary sales surtax rate as well as other tax rates for Florida
addresses.
Florida Annual Resale Certificate for Sales Tax
Businesses that register with the Florida Department of Revenue to
collect sales tax are issued a
Florida Annual Resale Certificate for Sales Tax. The certificate allows business owners, or their representatives, to
buy or rent property or services tax free when the property or service
is resold or re-rented.
Certificates expire on December 31 of each year. Registered, active
dealers are issued a new resale certificate annually. Registered, active
dealers who electronically file their tax returns are required to print
their own certificate. Dealers who file paper returns will be mailed a
new certificate each year in mid-November.
A business that sells or rents property or services tax free must
document each tax-exempt sale when the property or service is resold or
re-rented by obtaining a copy of the customer’s certificate or an
authorization number issued by the Department. For more information,
visit the Department's
Annual Resale Certificate for Sales Tax
webpage.
Florida Certificate of Forwarding Agent Address
Forwarding agents engaged in international export who meet the criteria
set forth in section 212.06(5)(b), Florida Statutes, may obtain a
Florida Certificate of Forwarding Agent Address by submitting a
completed
Application for a Florida Certificate of Forwarding Agent Address
(Form DR-1FA) to the Department.
The Department will issue a
Florida Certificate of Forwarding Agent Address (Form DR-14FAA)
to applicants who are approved. In addition, the Department will update
the
List of Approved Forwarding Agents
to include those who have applied for and received a certificate.
A selling dealer may accept a valid copy of a
Florida Certificate of Forwarding Agent Address instead of
collecting Florida sales tax on tangible personal property shipped by
the selling dealer as required by the terms of the sale to the
forwarding agent’s designated address for export from the United States.
In place of accepting a copy of the certificate, a selling dealer may
rely on the list of forwarding agents posted on the Department’s website
instead of collecting Florida sales tax on tangible personal property
shipped by the selling dealer as required by the terms of the sale to
the forwarding agent’s designated address for export from the United
States.
Selling dealers must maintain documentation that the property was
shipped or delivered by the dealer directly to the forwarding agent's
designated address.
Florida Farm Tax Exempt Agricultural Materials (TEAM) Card Program
For the Florida Farm Tax Exempt Agricultural Materials (TEAM) Card
Program, the Florida Department of Revenue (Department) will begin
accepting applications for TEAM Cards beginning January 1, 2024.
The TEAM Card allows qualified farmers to claim sales tax exemptions
provided in section 212.08, Florida Statutes (F.S.) on items purchased
for agricultural use. Farmers may present the plastic, wallet-size TEAM
Card to selling dealers instead of using a paper exemption certificate
for each purchase.
The TEAM Card does not expand or create agricultural exemptions beyond
those provided in s. 212.08, F.S.
Eligibility Requirements
A farmer, as defined in s. 212.02(28), F.S., whose property is
classified as agricultural according to s. 193.461, F.S., or who has
implemented agricultural best management practices adopted by the
Florida Department of Agriculture and Consumer Services according to s.
403.067(7)(c)2., F.S., on property the farmer owns or leases, is
eligible to apply for a TEAM Card.
Farmers that do not qualify for a TEAM Card or do not wish to obtain a
TEAM Card may continue using paper exemption certificates.
Applying and Renewing a TEAM Card
A qualified farmer desiring to obtain a TEAM Card must complete the
Application for a Florida Farm Tax Exempt Agricultural Materials (TEAM)
Card (Form DR-1 TEAM). Qualified farmers may complete the
online application
or download, print, complete, and mail
Form DR-1 TEAM
to:
Account Management – MS 1-5730
Florida Department of Revenue
PO Box 6480
Tallahassee, FL 32314-6480
The
Department of Agriculture and Consumer Services (DACS)
will provide cards to farmers approved by the Department. The TEAM Card
will include a unique certificate number, date of issuance, and
expiration date.
For Sellers: Documenting Exempt Sales to TEAM Card Holders
Selling dealers are required to document the exempt nature of their
tax-exempt sales. Dealers who make a tax-exempt sale to a qualified
farmer who presents their TEAM card are required to obtain one copy of
the farmer’s TEAM Card for purposes of documenting exempt sales to the
farmer during the effective period of the card. A selling dealer who
accepts the TEAM Card in good faith will not be held liable for any tax
due on sales made to the farmer during the effective period indicated on
the card.
Instead of obtaining a copy of the farmer’s TEAM Card, a selling dealer
may document the exempt sale by requesting a transaction authorization
number, valid for a single transaction only, from the Department prior
to or at the time of sale. Selling dealers may request a transaction
authorization number by:
Selling dealers who make sales to qualified farmers who are regular
customers may request a vendor authorization number instead of
maintaining a copy of a farmer’s TEAM Card or obtaining a transaction
authorization number. The vendor authorization number is a
customer-specific number and is valid for purposes of documenting exempt
sales during the effective period of the farmer’s TEAM Card. Selling
dealers may request a vendor authorization number using the
Department’s online Certificate Verification System.
For more information, review
Florida TEAM Card - Frequently Asked Questions
and
Tax Information Publication No. 23A01-25
, “New Florida Farm Tax Exempt Agricultural Materials (TEAM) Card
Program Beginning January 1, 2024 .”