Running a business in Florida? Stay informed about state and local sales tax rules, rates and regulations. Start with our Florida state sales tax nexus guide.
If you’re running a business in Florida, you are required to collect sales tax if you have physical or economic nexus. It is important you stay on top of sales tax rates, rules and regulations.
Here are some answers to your frequently asked questions:
What Is the Florida State Sales Tax Rate?
Florida state sales tax rates can range from 6%-8%. The base state sales tax rate is 6% and the local rate range is 0%-2% making the total range from about 6%-8%. Now, there is a degree of varying local sales tax rates so you should always use a specific lookup calculator or tool for the most accurate rates. Refer to the Florida Department of Revenue for a comprehensive list of specific jurisdictions.
Do I Have Physical Nexus in Florida?
According to the Florida Tax Authority, the following items constitutes sales tax nexus if you have any of the following in the state:
- Property ownership in the state
- An employee working on your behalf in the the state
- Sales of retail items that are taxable
- Rentals, leases or licenses to use real property
- Rental/lease of personal properties
- Repair or alteration of TPP (tangible personal property)
- Manufacturing or producing goods for sale at retail
- Importing goods from any state or country to sale at retail or for use in business or pleasure.
- Providing taxable services
These are the main elements that apply to most sellers but physical nexus may be established in Florida through other ways too. Refer to the website Florida Department of Revenue for comprehensive information.
Do I Have Economic Nexus in Florida?
As of July 1, 2021, Florida considers retailers who make or exceed $100,000 in taxable annual sales, from buyers in the state in the previous calendar year to have economic nexus. This excludes marketplace sales for individual sellers. Vendors need to collect sales tax from buyers in the state. You can read Florida’s economic nexus guidance from the Senate of Florida here.
Is What I’m Selling Taxable?
Tangible products are typically taxable in Florida. But as in most things, there are a few exceptions. These exceptions include: groceries, some prescription medications, common household remedies, seeds and fertilizer, and prosthetic or orthopedic tools.
On the other hand, services in Florida are typically not taxable. An exception to this may be if you provide a service that includes creating or repairing a physical product. If so, you may have sales tax responsibilities for those products.
What is the Filing Frequency in Florida?
You will be required to file and remit sales tax either monthly, quarterly or annually. Florida sales tax is due the last business day of the month following the reporting period. The due date is always by the 20th of the month following the reporting period but they require an extra business day to process payments. Keep this in mind, the due date may be 1-2 days earlier and needs to be initiated at 5 PM to be considered on time when filing electronically.
All sales tax dates and other information is subject to change, so consult with the Florida Department of Revenue or a sales tax expert for the final say on all sales tax matters.
Staying informed about your state and local sales tax rules will help ensure your business charges customers the right amount, which will make it easier to stay compliant and keep ahead. If you find you have more sales tax questions or concerns, feel free to reach out to us for a free consultative call. There is confidence in collaboration; we would love to collaborate with you.