Florida Tax - At a Glance
- by Real Storia
- on 04/22/2017
- at 12:06 AM
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Florida Taxes - A Quick Guide
There is absolutely no tax on personal income in Florida. The main taxes collected and the information about them in Florida is mentioned below:
- Intangible Tax
- Corporate Income Taxes (Businesses who earn income in Florida must file a tax on company profits (unless the exempted businesses)
- Sales Taxes (the rate of sales tax in Florida is 6%)
- Use Taxes
- Taxation of the state of Florida (Florida does not tax state revenue)
- Florida land/property tax (the real estate tax in Florida year will be on January 1 at market value)
According to the Tax Foundation's independent research organization, “Florida had been one of the lowest tax burdens in the country, for decades.” In 2013, Florida was the 5th lowest tax burden place for its residents and businesses. Residents should be aware of the ways from which a state collects taxes because not all the taxes are equally created.
- Taxes on Income: The strength of the low taxes of Florida is actually the lack of income tax that makes them one of seven US states. The state constitution forbids the income tax, although Floridians still have to pay federal taxes.
- Sales Tax or VAT (Value Added Tax): The state applies a rate of 6% on rental of goods or sales, with several exemptions, for instance, food and medicine. In addition, the local authorities can levy local taxes above the amount of the state, and a maximum of 55 of the 67 counties of Florida has given in 2012 the local sales tax on the tax of the state. The most tax added to sales amounted to 1.5% by 7 counties in 2012, to bring the total sales tax to 7.5% in the circles, this increases 8 counties in 2013.
- Tax on Intangible Assets: Floridians don’t have to pay taxes to the state for their intangible assets, for instance, investment. The law requires that the tax was canceled in 2007.
- Use Tax: Sales tax must be paid for out-of-state buying or for the internet, even if no tax was levied on the date of purchase, or at a lower rate than the tax charged sale and the use of Florida. Although it includes purchased tax items in Florida, it is mainly used for the branch items from the state, brought or delivered. Florida residents are required to report such sales and to pay taxes personally.
- Estate Tax: Florida does not charge tax inheritance or estate tax. No part of what a person wants would go to the state.
- Property Tax: Property taxes in Florida are among the highest in the country, although there are some exceptions to trying to ease the load on some Floridians. Even the state government does not collect any land, property taxes; local government receives a large portion of their funds from these levies. These charges are assessed locally and vary by municipality and affect the value of the property.
Property Tax Exemptions
There are 9 tax exemptions in Florida
1 - Homestead Exemptions: These exemptions are available on major residential residences in Florida. These exceptions can be available up to $ 50,000. However, only the first $ 25,000 exemption will apply to all taxes. The remaining $ 25,000 would be applied only to non-school taxes.
2 - Widower Exemptions: These exemptions of $ 500 are for widows and widowers who have not remarried. If you were divorced at the time of the death of your former spouse then you won’t be eligible for this exemption.
3 - Exemptions for Senior Citizens: Details for these exemptions are available at Click Here
They are estimated at $ 50,000 for residents of 65 years age and also which have a gross income as $ 20,000 less in 2001, adjusted for inflation. This exception is beside the homestead liberation.
4 - Exemptions for Blind People: $ 500 is available to Floridians who are legally blind.
5 - Total and Permanent, Disability Exemptions: These exceptions are available to owners who are completely and permanently disabled. Quadriplegics who use their property as homestead are exempt from all land/property tax. Others who need a wheelchair to be used for the movement or are blind and have a lower gross income to $ 14,500 in 1991, adjusted for inflation, can also be exempt from all basic taxes.
6 - Veteran Exemptions: These exemptions exist in a number of ways.
- As disabled documented for 10% or more in events related to war or a service may earn an additional $ 5,000 exemption in property owned by veterans.
- An honorable dismissed veteran who is permanently or completely disabled and needs a wheelchair to move around because of their service can be freed from all the basic taxes. In certain circumstances, this advantage can be transferred to a surviving spouse as well.
- A veteran of 65 years, who was a resident of Florida when he entered the military service, can qualify for an additional exception. The disability must be permanent and must be acquired as a result of military service. The real estate tax is deducted on the basis of the percentage of the disability.
- Members of the army during the last calendar year who were deployed are eligible to receive the tax exemption on the basis of the percentage of the time, during the year of deploy.
7 - Other Taxes Exemptions: Florida collects taxes on many goods and services paid by residents. Documentary stamp taxes are assessed on documents to transfer an interest in real estate in Florida, such as deeds and signatures of the warranty claim rescission. Additional taxes on tobacco products snuffed fuel, communications and many others.
For a full report on taxes in Florida, visit the Rentals Department website Florida Click Here
8 - Corporate Income Tax Exemptions: Although people don’t have to pay income taxes but it isn't applied to all types of businesses in Florida. Firms and artificial entities that earn their activity or earn income in Florida, including Crown corporations must submit a tax return from Florida to the company unless they are exempt. They must issue a tax return, even if the tax is not due. Individual companies, sole proprietorships, individual or property of the deceased and testamentary trusts are exempted and do not have to submit a return. S corporations are also generally exempt unless the federal income tax is due. The Corporate tax rate in Florida is 5.5%.
For further details and info about the different kinds of businesses in Florida, Check Here
9 - The Exemptions for Unemployment Tax (Formerly Unemployment Tax): Companies that are eligible for re-employment must also pay the re-employment tax. So far, the tax was called on unemployment before being renamed in 2012, this tax will be created for deployed and temporary workers who lose their jobs without their fault and they are capable of work.
RealStoria.com is not an official publication of the State of Florida. This article has been prepared for informational purposes only and is not for the purpose of providing Legal, Financial or Real Estate advice. For any further assistance contact your accountant or attorney.