Do I Need to File a Florida State Tax Return?

Florida does not impose a personal income tax on its residents, as the state is prohibited by its constitution from levying this type of tax. This means that for most individuals, there is no requirement to file an annual state income tax return. Individuals living and working in Florida only need to concern themselves with their annual federal tax obligations to the IRS.

Individual Tax Filing in Florida

The absence of a personal income tax means you will not find a state equivalent of the federal Form 1040 in Florida. You also will not need to calculate state-level tax withholdings from your paycheck, as your income from wages, salaries, and investments is not subject to a state-level tax.

While you are free from filing a state income tax return, other taxes are collected within the state. Businesses collect sales tax on goods and some services, which includes a statewide 6% tax plus any local discretionary sales surtaxes. Additionally, property owners pay annual property taxes to their local county government. These taxes, however, do not involve filing a recurring state tax return for individuals.

Business Tax Return Requirements

While individuals enjoy a reprieve from state income taxes, the same does not apply to all business entities operating within Florida. Certain businesses have specific state tax filing obligations that are separate from any federal requirements. These obligations ensure that businesses contribute to state revenues through taxes on corporate profits, sales transactions, and employment.

Corporations that conduct business in Florida are subject to a corporate income tax. C-corporations and other entities taxed as C-corporations must file a Florida Corporate Income/Franchise Tax Return using Form F-1120. This tax is calculated on the corporation’s net income with a tax rate of 5.5%. A return must be filed even if no tax is due, unless they qualify for a specific exemption.

Businesses involved in selling or renting goods, or providing certain taxable services, must navigate sales and use tax regulations. This involves registering with the Florida Department of Revenue to collect sales tax from customers. These businesses are then required to remit the collected taxes to the state by filing a Sales and Use Tax return, typically Form DR-15. The frequency of filing can be monthly, quarterly, or annually, depending on the amount of tax collected.

Employers in Florida have a responsibility to pay Reemployment Tax, which funds unemployment benefits for former employees. This is the state’s version of unemployment tax and requires employers to file a quarterly report, Form RT-6, with the Department of Revenue. The tax rate is specific to each employer and is applied to a portion of the wages paid to each employee.