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Deb is the head of marketing at Numeral. He has worked with the likes of Shopify and Wonderment and has helped countless ecommerce stores scale seamlessly. With a background in finance, he often finds himself advising stores on sales tax and good financial systems.
December 29, 2023 Reviewed by
Kevin is a licensed CPA in the state of California. Prior to Numeral, Kevin operated multiple ecommerce businesses and worked at KPMG as a tax advisor.
Florida is one of the best locations to start an ecommerce business with it's great weather and friendly business laws.
In this articleFlorida is one of the best locations to start an ecommerce business with it's great weather and friendly business laws.
| State taxing authority | Florida Department of Revenue |
|---|---|
| Florida base sales tax rate | 6% |
| Local tax rates | 0-2.5% |
| 2023 Florida sales tax rate | 6% to 8.25% |
| Tax threshold | >$100,000 in annual sales |
| Website | floridarevenue.com |
| Tax Line | (850) 488-6800 |
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%.
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.
| City | Local sales tax rate | Total sales tax for county |
|---|---|---|
| Tallahassee | 1.5% | 7.5% |
| Tampa | 1.5% | 7.5% |
| Jacksonville | 1% | 7% |
| Miami | 1% | 7% |
| Orlando | 0.5% | 6.5% |
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.
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.
Penalties for not paying Florida sales tax can include:
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.
Florida is a destination-based sales tax state. Sales tax is collected based on where the product or service is delivered within Florida.
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.
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.
Some common exemptions from Florida sales tax include:
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.
Clothing, footwear, and accessories are generally taxable in Florida unless considered protective clothing required for employment.
Digital products like music, ebooks, streaming services, and software downloads are 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.
Services are generally not taxable in Florida. However, if your service requires fixing a physical, tangible product, you need to collect sales tax.
Excise taxes are levied on specific goods or services. Local governments impose discretionary taxes, and the rates vary from city to city.
Florida has excise taxes on motor fuels, cigarettes, other tobacco products, and alcoholic beverages. There is no excise tax on recreational marijuana.
Florida does not have a general sales tax on food and beverages. However, there are excise taxes on some specific items:
Remote sellers with over $100,000 in sales delivered to Florida must register and collect Florida sales tax.
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.
Most Florida counties impose a local discretionary sales surtax between 0.5% and 2.5%. Surtax rates vary widely across the state.
Let’s look at the steps to collect sales tax in Florida now.
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:
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.
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.
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.
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.
| Filing Period | Due Date |
|---|---|
| January | February 20 |
| February | March 20 |
| March | April 20 |
| April | May 20 |
| May | June 20 |
| June | July 20 |
| July | August 20 |
| August | September 20 |
| September | October 20 |
| October | November 20 |
| November | December 20 |
| December | January 20 |
| Filing Period | Due Date |
|---|---|
| Q1 (Jan - Mar) | April 20 |
| Q2 (Apr - Jun) | July 20 |
| Q3 (Jul - Sep) | October 20 |
| Q4 (Oct - Dec) | January 20 |
| Filing Period | Due Date |
|---|---|
| January - June | July 20 |
| July - December | January 20 |
| Filing Period | Due Date |
|---|---|
| 2023 | January 20, 2024 |
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.
The due dates for filing sales tax returns in Florida vary depending on the filing frequency assigned by the Department of Revenue.
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.
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.
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.
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.
The audit and appeals process in Florida involves the following steps:
Here are the steps for registering for sales tax in Florida:
As a remote seller, you must register for Florida sales tax if:
There is no cost to obtain a Florida sales tax certificate. You can register online for free.
For sales tax filing and appeals in Florida, you would contact:
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.
Deb is the head of marketing at Numeral. He has worked with the likes of Shopify and Wonderment and has helped countless ecommerce stores scale seamlessly. With a background in finance, he often finds himself advising stores on sales tax and good financial systems.
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