Research Areas
Florida
The Facts on Florida's Tax Climate
Here are some basic facts on Florida's tax system and how it compares to other states:
Tax Freedom Day Arrives on April 9 in Florida
Tax Freedom Day is the day when Americans finally have earned enough money to pay off their total tax bill for the year. In 2009, Florida taxpayers had to work until April 9 to pay their total tax bill, ranking it 27th highest in the nation. That's four days earlier than national Tax Freedom Day (April 13). The Tax Freedom Days of neighboring states are: Georgia, April 9 (ranked 17th nationally) and Alabama, April 2 (ranked 44th nationally).
Full study of Tax Freedom Day, nationwide and in each state
Florida's State/Local Tax Burden Among Nation's Lowest
Over the past three decades, Florida's state and local tax burden has been among the nation's lowest. Estimated at 7.4% of income, Florida's state/local tax burden percentage is ranked 47th nationally, well below the national average of 9.7%. Floridians pay $3,441 per capita in state and local taxes.
Florida's State and Local Tax Burden, 1977-present
Other States' State/Local Tax Burdens
Historical Chart Comparing All States' State/Local Tax Burdens from 1977 to 2008
Florida's 2009 Business Tax Climate Ranks 5th
Florida ranks 5th in the Tax Foundation's State Business Tax Climate Index. The Index compares the states in five areas of taxation that impact business: corporate taxes; individual income taxes; sales taxes; unemployment insurance taxes; and taxes on property, including residential and commercial property. Neighboring states ranked as follows: Georgia (27th) and Alabama (21st).
50-State Comparison of Business Tax Climates (data only)
2009 State Business Tax Climate Index, Sixth Edition (full study)
Florida Levies No Individual Income Tax
Florida is among seven states in the country that collect no individual income taxes. Since most small businesses are either S Corporations or partnerships or sole proprietorships, they pay their business taxes at the rates for individuals. This makes the tax environment for small businesses in Florida very competitive compared to other states.
50-State Table of Individual Income Tax Rates
50-State Table of State Individual Income Tax Collections
50-State Table of State and Local Individual Income Tax Collections Per Capita
Florida's Corporate Income Tax System
Florida's corporate tax structure consists of a flat rate of 5.5 percent on all corporate income, which ranks 40th highest among states that tax corporate income. In 2007, state-level corporate tax collections (excluding local taxes) were $135 per capita and ranked 31st highest nationally.
50-State Table of Corporate Income Tax Rates
50-State Table of State and Local Corporate Income Tax Collections Per Capita and Per Household
50-State Table of State Corporate Income Tax Collections Per Capita
Florida Levies Sales Tax above National Median
Florida levies a 6% general sales or use tax on consumers, above the national median of 5.5%.In 2006, state and local governments combined collected $1,228 per person in general sales taxes, which ranked 10th highest nationally. Florida's statewide gasoline tax stands at 34.5 cents per gallon (ranked 4th highest nationally), while its cigarette tax stands at 33.9 cents per pack of twenty (ranked 45th nationally). Additionally, counties in Florida have the authority to levy their own "local option" taxes on gasoline. The sales tax was adopted in 1949, the gasoline tax in 1921 and the cigarette tax in 1943.
50-State Table of Sales and Excise Tax Rates
50-State Table of State and Local General Sales Tax Collections Per Capita and Per Household
50-State Table of State and Local General Sales and Gross Receipts Tax Collections Per Household and Per Capita
Florida Property Taxes: Middle of the Pack
Florida is one of the 37 states that collect property taxes at both the state and local levels. As in most states, local governments collect far more. Florida's localities collected $1,277.16 per capita in property taxes in fiscal year 2006, the latest year for which the Census Bureau has published state-by-state data. At the state level, Florida collected $10.50 per capita in property taxes during FY 2006, making its combined state/local property taxes $1,287.66 per capita, ranked 16th highest nationally.
State property tax collections per capita by state
Federal Tax Burdens and Expenditures -- Florida is a Beneficiary State
Florida taxpayers receive just slightly less in federal funding than they send to Washington. Per dollar of Federal tax collected in 2005, Florida citizens received approximately 97 cents in the way of federal spending. This ratio is 34th highest among the 50 states, down from 24th in 1995 when Florida received $1.07 in federal spending per dollar of federal taxes paid. Neighboring states and the amount of federal spending they received per dollar of federal taxation paid were as follows: Georgia ($1.01) and Alabama ($1.66).
Comparing the amount of federal taxes sent to Washington with the amount of federal spending coming back to the state
