Index
Business & FinanceFlorida, USA

Florida No State Income Tax

Summary

The Florida State Constitution explicitly bans the collection of personal income taxes, making it a highly popular destination for retirees and high earners.

Rights & Rules

  • 01.
    You pay absolutely $0 in state income tax on your salary, wages, or tips.
  • 02.
    You pay $0 in state tax on investment income, dividends, or Social Security benefits.
  • 03.
    To fund the government, Florida relies heavily on a state sales tax (6%, plus local county surtaxes) and property taxes.
  • 04.
    While individuals pay no income tax, Florida DOES charge a corporate income tax (currently 5.5%) on traditional C-Corporations.

Penalties

  • 01.
    There are no individual state income tax penalties because the tax does not exist. However, failing to pay local property taxes can result in the swift foreclosure and auction of your home.

Verified Citations

Florida Constitution, Article VII, Section 5

Source
"No tax upon estates or inheritances or upon the income of natural persons who are residents or citizens of the state shall be levied by the state, or under its authority..."