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Florida is one of the best locations to start an ecommerce business with it's great weather and friendly business laws.
Sales tax at a glance
Florida sales tax rates & calculations in 2023
The Florida sales tax rate in 2023 is 6% plus local rates. This comprises a base rate of 6% plus a mandatory local rate of 0-2.5%. Depending on the local sales tax jurisdiction, the total tax rate can be as high as 8.5%.
List of local sales tax rates in Florida
You can look up the full table of sales tax rates in each city and county in Florida. Here’s a snippet of the same.
Recent tax rate changes in Florida
Effective July 1, 2021, Florida adjusted the rounding calculation for sales tax due. Businesses must now calculate sales tax due to the third decimal place and round up to the next cent when the third decimal place is greater than 4.
FAQs
How do you calculate Florida sales tax?
To calculate Florida sales tax, you can use the following formula:
Sales tax = (6% base rate + local rate) * purchase price
For instance, if the local rate is 1%, and the purchase price is $100, then the sales tax would be $7.
What are the penalties for not paying Florida sales tax?
Penalties for not paying Florida sales tax can include:
- 10% late filing penalty
- 10% late payment penalty
- Minimum $50 penalty even if no tax is due
- Interest charges on unpaid tax at 9% annual rate
- Possible audit and assessment of unreported tax
What’s the difference between destination-based and origin-based sales tax states?
In destination-based sales tax states like Florida, tax is collected based on where the product or service is delivered. In origin-based states, tax is collected based on where the sale originated.
Is the Florida sales tax destination-based or origin-based?
Florida is a destination-based sales tax state. Sales tax is collected based on where the product or service is delivered within Florida.
Is Florida a streamlined sales tax state?
Florida is not a Streamlined Sales Tax State.
The Streamlined Sales Tax Project (SSTP) aims to simplify sales tax collection across states that adopt its Streamlined Sales and Use Tax Agreement (SSUTA), and Florida still needs to join the SSTP or implement the SSUTA.
What’s taxable in Florida?
Items like food, beverages, and tobacco that cost more than 10 cents are subject to tax when sold at venues such as sports arenas, theaters, street corners, and events like fairs and carnivals.
This also applies to specialized kiosks selling hot dogs or ice cream. Even nonprofit organizations with a valid Florida Consumer's Certificate of Exemption must charge tax on these items at fundraising events unless a specific exemption applies.
Exemptions from sales tax in Florida
Some common exemptions from Florida sales tax include:
- Most groceries
- Prescription medicines
- Products made for resale or further processing
- Purchases by some nonprofit organizations
- Purchases by government agencies
FAQs
Are groceries taxable in Florida?
Most groceries in Florida are exempt from sales tax, including items like bread, milk, meat, eggs, and fresh fruit and vegetables. Some taxable grocery items are candy, dietary supplements, soft drinks, and prepared foods.
Is clothing taxable in Florida?
Clothing, footwear, and accessories are generally taxable in Florida unless considered protective clothing required for employment.
Are digital products taxable in Florida?
Digital products like music, ebooks, streaming services, and software downloads are taxable in Florida.
Is software-as-a-service (SaaS) taxable in Florida?
Florida does not require you to collect taxes on Software-as-a-service businesses. This is similar to most other businesses that do not collect tax on services.
Are services taxable in Florida?
Services are generally not taxable in Florida. However, if your service requires fixing a physical, tangible product, you need to collect sales tax.
Excise & discretionary taxes
Excise taxes are levied on specific goods or services. Local governments impose discretionary taxes, and the rates vary from city to city.
Excise taxes in Florida (alcohol, tobacco, gasoline, fuel, marijuana)
Florida has excise taxes on motor fuels, cigarettes, other tobacco products, and alcoholic beverages. There is no excise tax on recreational marijuana.
Food and beverage tax in Florida
Florida does not have a general sales tax on food and beverages. However, there are excise taxes on some specific items:
- Alcoholic beverages - $6.50/gallon
- Bottled water - 12.5c/gallon
Remote sellers in Florida
Remote sellers with over $100,000 in sales delivered to Florida must register and collect Florida sales tax.
Prepaid sales tax rates for fuel products in Florida
Florida has a pre-paid sales tax on motor fuel and diesel fuel before the fuel reaches the pumps. The September 2023 updated sales tax rates per gallon are between $0.36 to $0.42 depending on the state.
Discretionary taxes in Florida (local sales taxes)
Most Florida counties impose a local discretionary sales surtax between 0.5% and 2.5%. Surtax rates vary widely across the state.
Collecting sales tax in Florida
Let’s look at the steps to collect sales tax in Florida now.
How to collect sales tax in Florida if you are not based in Florida (Out-of-State)
Even if you do not have a physical presence in Florida, you must register with the Florida Department of Revenue if you’re considered "engaged in business" in Florida.
There are two main ways to be considered as “engaged in business” in Florida:
- Having over $100,000 in sales delivered to Florida.
- Being a marketplace facilitator facilitating over $100,000 in sales by marketplace sellers delivered into Florida.
You can register for a Florida seller's certificate online using the Florida online registration system. Once you obtain the certificate in Florida, you must collect and remit sales tax on taxable sales delivered into the state.
Should you collect sales tax on shipping charges in Florida?
If shipping charges are separately stated on the invoice, they are generally exempt from Florida sales tax. However, handling charges related to taxable purchases are subject to sales tax.
Filing and paying sales taxes in Florida
If you’re ready to start selling in Florida, you need to know the filing frequency and how to file your sales taxes in Florida.
Sales tax return filing schedule and due dates in Florida
The Florida Department of Revenue assigns a filing frequency to businesses based on their anticipated taxable sales. This schedule is either monthly, quarterly, semi-annually, or annually.
The following due dates apply to Florida sales tax returns.
Monthly
Quarterly
Semi-annual
Annual
Filing penalties in Florida
Businesses that fail to file their sales tax returns on time may be subject to penalties. The penalties are based on the amount of tax due and the number of days late.
For late or incorrect tax filings, the state charges a 10% penalty on the amount of tax owed, up to a maximum of $50.
FAQs
What are the Florida sales tax due dates?
The due dates for filing sales tax returns in Florida vary depending on the filing frequency assigned by the Department of Revenue.
I didn’t collect any Florida sales tax during this period. Do I still need to file a return?
Yes, you still need to file a sales tax return even if you didn't collect any sales tax. This is because you may be eligible for a refund.
Can I amend a Florida sales tax return?
Yes, you can file an amended return in Florida using Form DR-15. You need to pay any additional tax, interest, and penalty that may be due. The quickest way to amend sales tax in Florida is online.
When are returns due in Florida?
Returns are due on the 1st of the following month. However, you have until the 20th of the following month before it is considered late filing.
For instance, for monthly filers, January sales tax filing and payment must be completed by 1st February. However, you can pay by 20th February. After this date, it is considered a late filing.
What is the penalty for filing and/or paying Florida sales tax late?
Florida has a 10% late filing penalty with a $50 minimum penalty. An additional floating rate of interest applies to any unpaid tax. The penalty and interest will not exceed 50% of the due tax.
Audit & appeals process
The audit and appeals process in Florida involves the following steps:
- Audit scheduled and conducted by the Florida Department of Revenue.
- Audit report issued with any additional tax assessments.
- The taxpayer has 60 days to file a protest to the audit findings.
- The appeals process is conducted through conferences with the Department.
- Further appeals can be made to the Florida Division of Administrative Hearings.
Sales tax registration
Here are the steps for registering for sales tax in Florida:
- Visit the Florida Department of Revenue's enrollment website and select "Enroll new account(s)."
- Provide your business information like legal name, FEIN, start date, etc.
- Submit your application and obtain your certificate number.
- Begin collecting, reporting, and remitting sales tax on taxable transactions.
Registration requirements for online sellers in Florida
As a remote seller, you must register for Florida sales tax if:
- You exceeded $100,000 in remote sales delivered into Florida last calendar year.
- You facilitate remote sales into Florida as a marketplace provider exceeding $100,000 last calendar year.
Cost of registration for a Florida sales tax license
There is no cost to obtain a Florida sales tax certificate. You can register online for free.
More information
For sales tax filing and appeals in Florida, you would contact:
- Florida Department of Revenue
- Phone: 850-488-6800
- Website: floridarevenue.com
There you have it—an extensive guide on ecommerce sales tax for Florida. If don't want to worry about sales tax more than five minutes monthly, book a demo with Numeral today.
