Taxation in Florida
Updated on Wednesday 18th July 2018
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Florida is known as the low-tax state for its beneficial tax structure that helps foreign investors expand their activities in a stable and very much appreciated business climate. The main benefit of the tax system in Florida is that there is no state income tax. We invite you to discover the information about the tax regime in Florida and to get in touch with our team of company formation specialists in USA for support. Our advisors are at your disposal if you want to start a business in USA, including Florida.
What is the sales tax rate in Florida?
The general sales tax in Florida is set at 6%, with the mention that municipalities in Florida can collect their own sales taxes not exceeding 2%. However, the highest sales tax rate in Florida is 7% and it is collected in most of the counties.
The federal corporate income tax in Florida
There are eight tax brackets, depending on the incomes registered, for which the corporate income tax is levied, as seen in the table below:
|Incomes||Marginal Corporate Tax Rate|
|Up to $50,000||15%|
|Between $50,000 and $75,000||$7,500 + 25% on the amount over 50,000|
|Between $75,000 and $100,000||$13,750 + 34% on the amount over 75,000|
|Between $100,000 and $335,000||$22,250 + 39% on the amount over 100,000|
|Between $335,000 and $10,000,000||$113,900 + 34% on the amount over 335,000|
|Between $10,000,000 and $15,000,000||$3,400,000 + 35% on the amount over 10,000,000|
|Between $15,000,000 and $18,333,333||$5,150,000 + 38% on the amount over $15,000,000|
|More than $18,333,333||$6,416,667 + 35% on the amount over $18,333,333|
Taxation for LLCs in Florida
The individual LLC members are responsible for paying the federal income taxes in Florida. Most of the limited liability companies in Florida are treated as corporations when it comes to taxation and they pay a 5.5% rate for corporate income tax in Florida.
Does Florida impose a franchise tax?
No, there is no franchise tax in Florida. Also, there is no privilege tax imposed on businesses in Florida. However, there is an alternative minimum tax or AMT as it is known of 3.3% applicable after taking into account any federal tax exemption declared on the company’s tax return.
We invite you to contact our team of company incorporation agents in USA and find out information about the tax regime in Florida. Our team of advisors can also help you register a company in USA in any state.