What Is the Tax Rate in Orlando, Florida?

Florida’s tax structure is characterized by the absence of an individual income tax, relying instead on other revenue streams to fund public services. These taxes support local infrastructure, education, and other community needs, contributing to the overall functioning of the area. This overview details the primary taxes encountered in Orlando, Florida.

Sales Tax in Florida

Florida imposes a statewide sales tax on the retail sale, admission, storage, or rental of tangible personal property and certain services, unless specifically exempt. The general state sales tax rate is 6%.

Many Florida counties levy a local option discretionary sales surtax. For Orlando and Orange County, the combined sales tax rate is 6.5%. Certain items are exempt from sales tax, notably groceries and prescription medications.

Property Tax in Orlando and Orange County

Property taxes are a primary source of revenue for local governments, including Orange County and the City of Orlando, and are not levied by the state of Florida. The Orange County Property Appraiser’s Office is responsible for identifying, locating, and valuing all real and personal property within the county for tax purposes. Property values are assessed annually, and this assessed value, minus any applicable exemptions, forms the basis for property tax calculations.

Property taxes are calculated using “millage rates,” where one mill represents one dollar of tax for every $1,000 of a property’s taxable value. Various taxing authorities set these millage rates based on their budgetary needs, including Orange County, the City of Orlando, and Orange County Public Schools. For instance, the City of Orlando’s city millage rate has been 6.6500 mills. Homeowners can benefit from exemptions such as the homestead exemption, which reduces the taxable value of their primary residence, thereby lowering their property tax bill.

Income Tax in Florida

Florida stands out as one of the few states that does not impose a state individual income tax. This means that individuals residing in Orlando or elsewhere in Florida are not subject to a state-level income tax on their wages, salaries, or other personal income. Instead, residents are solely responsible for federal income taxes.

While individual income is not taxed at the state level, Florida does levy a corporate income tax on businesses. The corporate income tax rate in Florida is 5.5%. This tax applies to C corporations that conduct business and generate income within the state. However, S corporations, partnerships, and sole proprietorships are generally exempt from this specific state-level corporate income tax, although they may have other tax responsibilities.

Other Taxes and Fees in Orlando

Beyond sales and property taxes, Orlando residents and visitors may encounter other specific taxes and fees. A prominent example is the Tourist Development Tax (TDT), often referred to as the “bed tax.” This tax is levied on the rental or lease of living quarters and accommodations, such as hotel rooms and other short-term rentals, for a period of six months or less.

In Orange County, the Tourist Development Tax rate is 6% of the total consideration charged for these accommodations. The revenue generated from the TDT is specifically earmarked for tourism-related purposes, including the acquisition and operation of convention centers, sports stadiums, and the promotion and advertisement of tourism. Additionally, local fees and surcharges, such as utility taxes or local business taxes, may apply depending on the specific services consumed or business activities conducted within Orlando.