Updated – Originally published April 23, 2025
Thinking about moving to Florida—or starting a business in the state? Understanding how sales tax works is essential for making informed financial decisions. Florida imposes a combination of statewide and county-level sales taxes that affect residents, businesses, and visitors alike.
Before diving into the details, here is a quick overview of the key facts for 2025.
Quick Summary: Florida Sales Tax (2025)
Statewide Rate: 6%
Local Surtax: 0.5%–2.5% (varies by county)
Average Combined Rate: ~7.05%
Car Sales Tax: 6% + applicable county surtax
Counties With Some of the Highest Rates: Miami-Dade (7%), Orange (7.5%), Hillsborough (7.5%)
Common Exemptions: Groceries, prescription drugs, medical supplies
What Is the Sales Tax in Florida? (2025 Rate)
Florida imposes a 6% statewide sales tax on most retail sales of tangible goods and certain taxable services.
In addition, every county has the option to levy a discretionary sales surtax of 0.5% to 2.5%, which is added on top of the base rate.
This means that depending on the county, total sales tax in Florida ranges from:
- Low end: 6.5%
- High end: 8.5%
Florida’s average combined rate—7.05%—is slightly above the national average.
What Determines How Much Sales Tax You Pay in Florida
Several factors affect how much sales tax consumers and businesses ultimately pay. These include:
- The type of goods or services purchased
- The county where the transaction occurs
- Residency or delivery location
- Eligible exemptions or tax-free periods
- Whether the purchase is online or in person
Each of these variables can meaningfully change the total tax owed on a transaction.
Taxable vs. Exempt Goods and Services in Florida
Florida taxes most retail goods but exempts many essentials. Some key rules include:
Common Exemptions
- Groceries for home consumption
- Prescription medications
- Medical equipment and supplies
- Certain clothing items under $60 (varies by exemption period)
- School books and educational materials
Common Taxable Goods and Services
- Prepared food and restaurant meals
- Most clothing over $60
- Rental or lease of tangible personal property
- Hotel stays and short-term lodging
- Certain services, including commercial cleaning and repairs
Since Florida taxes few services compared to other states, understanding which categories are taxable is especially important for service-based businesses.
Sales Tax by County: Dade, Orlando, Tampa & More
Because each county may impose a discretionary surtax, two identical purchases can be taxed at different rates depending on where they occur.
Examples:
- Miami-Dade County: +1% surtax → 7% total
- Orange County (Orlando metro): +1.5% surtax → 7.5% total
- Hillsborough County (Tampa area): +1.5% surtax → 7.5% total
- Counties with no surtax: 6% base only
Businesses with multi-county operations must track county-specific rates to ensure accurate collection and remittance.
Do Residents and Non-Residents Pay Different Sales Tax in Florida?
Generally, residents and visitors pay the same sales tax on in-state purchases.
However, Florida offers specific exemptions that may apply to non-residents if:
- The item is shipped directly to an out-of-state address
- The purchaser is not benefiting from Florida-funded services
Important distinction:
Visitors making purchases while physically in Florida are required to pay the same tax as residents.
Florida Sales Tax Exemptions and Discounts
Florida provides a wide variety of exemptions that reduce the tax burden on certain industries and consumers.
Examples of Exempt Goods
- Groceries
- Prescription drugs
- Medical devices
- Newspapers
- Agricultural supplies and equipment
- Manufacturing equipment in certain cases
Local Discounts
Some counties offer early-payment discounts on surtaxes.
Businesses that qualify for exemptions must maintain proper documentation, as required by the Department of Revenue.
Sales Tax on Online Purchases in Florida
Florida requires remote sellers (out-of-state businesses) to collect the state’s 6% tax plus any applicable county surtax if they exceed economic nexus thresholds.
What this means for consumers:
- Online purchases are taxed the same as local purchases
- The tax rate is based on the delivery address, not the seller’s location
Florida also enforces use tax, requiring individuals to self-report tax on untaxed out-of-state purchases—though most major online retailers now collect tax automatically.
Car Sales Tax in Florida
Florida taxes vehicle purchases at:
6% state tax + the county surtax where the vehicle is registered.
Example:
A car bought in Miami-Dade County is taxed at 7%, while a vehicle bought and registered in Orange County may be taxed at 7.5%.
Out-of-State Vehicle Purchases
Florida residents who buy a car in another state must still pay Florida use tax when registering the vehicle—minus any sales tax already paid to the other state, up to Florida rates.
Sales Tax and Tourism in Florida
With tens of millions of visitors annually, tourism significantly drives Florida’s sales tax revenue.
How Tourists Pay Sales Tax
Visitors pay the same tax as residents on:
- Retail purchases
- Prepared food
- Event tickets
- Lodging and rentals
However, many tourists benefit from:
- Florida’s tax holidays
- Duty-free purchases at ports
- Price differences between counties
Tourism-heavy counties frequently adopt higher surtax rates.
How Sales Tax in Florida Affects Businesses
Sales tax impacts Florida businesses in multiple ways:
1. Compliance Burden
Businesses must track:
- County surtax rates
- Rule changes
- Exemptions
- Filing deadlines
This can be challenging for multi-location or multi-state sellers.
2. Pricing Strategy
Businesses must decide whether to:
- Display tax-inclusive pricing (rare in the U.S.), or
- Add tax at checkout
Both options affect customer perception.
3. Cash Flow Management
Collected tax must be held until remittance, which can strain businesses with:
- Seasonal revenue cycles
- Tight cash flow
4. Record-Keeping Requirements
Businesses must keep detailed records of:
- Taxable and exempt sales
- County-based transactions
- Online vs. in-person sales
Failure to do so may trigger penalties.
5. Profit Margins
Sales tax can influence:
- Margins on high-volume products
- Consumer price sensitivity
- Inventory sourcing decisions
How Sales Tax in Florida Affects Residents
Sales tax also influences day-to-day life for Florida residents.
Cost of Living
Higher county surtaxes directly raise the price of taxable goods.
Purchasing Power
Sales tax reduces discretionary income, especially for price-sensitive households.
Fairness and Equity
Sales tax is often viewed as regressive because low-income households spend a greater proportion of income on taxable goods.
Discretionary Spending
High surtax counties may see reduced consumer spending on:
- Dining
- Entertainment
- Retail shopping
Tax Holidays
Florida runs several tax-free holidays each year, encouraging strategic consumer purchases.
Cross-Border Shopping
Residents near Georgia or Alabama sometimes shop across state lines if lower tax rates apply.
Understanding Florida’s Sales Tax System in 2025
Florida’s sales tax system affects virtually every person and business in the state—from pricing strategies and cash flow to tourism spending and household budgets. With county surtaxes varying widely, staying informed is essential for accurate budgeting, compliance, and financial planning.
Whether you’re a resident, business owner, or visitor, understanding how sales tax works in Florida helps you make smarter purchasing and operational decisions.
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