Florida State Income Tax in 2025: A Guide

Florida is one of several US states with no income tax, making it popular for those seeking to stretch their income.  

However, Floridians aren’t entirely off the hook for taxes. You’re still responsible for paying federal income taxes, as well as state sales and property taxes. For example, if you earned money from Florida sources in 2024, you’ll likely still need to file a federal tax return for the 2024 tax year (the taxes you file in 2025).  

While Florida’s tax structure offers relief from income tax at the state level, you should still budget for federal taxes and the state’s other forms of taxation, which support state and local services.

Specific income tax considerations in Florida

Florida’s lack of state income tax means the state doesn’t tax individual income, like retirement and pensions, Social Security benefits, investment earnings, and military pay. This offers an appealing financial break for retirees, investors, and military members, as it can mean they keep more of their earnings.  

However, while Florida spares your individual income, you still might have to pay federal taxes. For example, the IRS might tax your Social Security benefits and pension withdrawals (depending on your total income).  

It’s also crucial to note that if you live in Florida but earn income in another state with an income tax, you may need to file a return in that state in addition to meeting federal tax requirements. 

If you live in a state with an income tax but earned money in a state without one, like Florida, you still need to include that income on your home state tax return. For example, if you’re a California resident who worked in Florida in 2024, you must report your Florida earnings on your California (and federal) return. 

Other types of common taxes in Florida

While Florida residents enjoy freedom from state income tax, other taxes are part of the picture.

Property tax

Property tax in Florida is assessed at the local level and varies by county. It funds local services like schools, emergency services, and infrastructure.  

Although rates vary, Florida’s property taxes tend to be in the middle range compared to other states, with an average 0.71% effective rate. Urban areas with higher housing prices, like Miami-Dade County, tend to levy higher property taxes.

Sales tax

Sales tax in Florida is another key source of state revenue. The base sales tax rate is 6%, with some counties adding their own surtaxes, which range from 0.5% to 1.5%.  

Florida’s sales tax applies to most goods and services, though essential items like groceries and certain medical products are exempt. Florida’s combined state and local sales tax is lower than that of other Southern states with no income tax, such as Texas and Tennessee.

Tangible Personal Property (TPP) tax

Taxpayers in Florida may be liable for the Tangible Personal Property (TPP) tax. The Florida Department of Revenue defines tangible personal property as “all goods, property other than real estate, and other articles of value that the owner can physically possess and that have intrinsic value.” This doesn’t include inventory, household goods, or some vehicles.

You need to file a TTP return if you:

• Have a proprietorship, partnership, or corporation
• Are a self-employed agent or contractor, or leases, lends, or rents property. 

The TPP return is due to the local property appraiser by April 1 and reports all property owned on January 1. Taxpayers requiring a TPP return will be eligible for a $25,000 exemption if the return is filed by the deadline.

How much is federal income tax in Florida?

The federal income tax system in 2024 has seven tax brackets, ranging from 10% to 37%, depending on your taxable income and filing status. For example, single filers earning up to $11,600 fall into the 10% tax bracket, while those with taxable income above $609,350 are taxed at the top rate of 37%. 

How to file income tax in Florida

While there’s no state income tax in Florida, most residents still need to file federal income taxes each year. And don’t forget about property and sales taxes that keep communities running smoothly. 

TurboTax makes it easy to file your federal taxes and understand how Florida’s unique tax setup impacts you. Whether you’re filing on your own or looking for a little guidance, TurboTax has your back. Our local tax experts in Florida are ready to step in to answer your questions or even file for you.