Florida Sales Tax Explained — What's Taxed and What's Not

Moving to Florida means getting familiar with a tax system that's surprisingly complex for a state with no income tax. After helping families relocate here for over two decades, I've fielded countless questions about what gets taxed and what doesn't. The short answer? Florida's sales tax isn't as straightforward as you might think.

Here's what you actually need to know about Florida's sales tax structure, complete with the local quirks that'll save you money — or cost you if you're not paying attention.

Florida's Base Sales Tax Rate

Florida charges a 6% state sales tax on most purchases. That's the baseline, but it's rarely what you'll actually pay at checkout. Every county adds its own discretionary surtax, ranging from 0.5% to 2.5%.

In the Tampa Bay area specifically:

• Hillsborough County: 7.5% total (6% state + 1.5% local)
• Pinellas County: 8% total (6% state + 2% local)
• Pasco County: 7.5% total (6% state + 1.5% local)
• Hernando County: 7.5% total (6% state + 1.5% local)

That Pinellas premium adds up. Buy a $30,000 car in St. Petersburg versus Tampa, and you're looking at an extra $150 in taxes. Buy it in Clearwater versus New Port Richey? Same $150 difference.

What Gets Taxed in Florida

Most tangible personal property gets hit with sales tax. This includes:

Everyday Purchases

• Electronics and appliances
• Furniture and home goods
• Tools and hardware
• Books, magazines, and newspapers
• Most personal care items
• Pet supplies
• Sporting goods

Vehicles and Transportation

Here's where Florida gets expensive. The state taxes:

• Car purchases (including private party sales)
• Boat and motorcycle purchases
• RV and trailer purchases
• Aircraft purchases

Vehicle sales tax applies whether you buy from a dealer or your neighbor. That 2019 Honda Accord you're buying for $18,000? You'll owe tax on the full purchase price, not just what the dealer profits.

Digital Goods and Services

Florida has aggressively expanded taxation into the digital realm:

• Downloaded software and apps
• Streaming services (Netflix, Spotify, etc.)
• Digital books and magazines
• Online gaming subscriptions
• Cloud storage services

This caught many newcomers off-guard when it rolled out in 2021. Your Disney+ subscription now carries Florida sales tax.

What's NOT Taxed in Florida

Groceries — Mostly

Florida doesn't tax most groceries, but the definition of "grocery" trips up plenty of people. Tax-free items include:

• Fresh fruits and vegetables
• Meat, poultry, and seafood
• Dairy products
• Bread and cereals
• Canned and frozen foods

But prepared foods get taxed. That rotisserie chicken from Publix? Taxed. The bag of flour to make your own bread? Not taxed.

Prescription Medications

Prescription drugs are exempt, but over-the-counter medications are taxed. Insulin is tax-free, but aspirin isn't.

Most Services

Unlike some states, Florida doesn't tax most personal services:

• Haircuts and salon services
• Home repair and maintenance
• Legal and accounting services
• Medical and dental services
• Auto repair services

Clothing — With Limits

This is where Florida gets weird. Regular clothing under $100 per item is tax-free, but anything over $100 gets taxed on the full amount. Buy a $99 jacket? No tax. Buy a $101 jacket? You pay tax on the entire $101.

Accessories always get taxed regardless of price:

• Jewelry
• Handbags
• Belts
• Watches

Florida's Clothing Sales Tax Holidays

Florida offers periodic sales tax holidays, typically in late July or early August. During these events (usually lasting 10-14 days), you can buy:

• Clothing and footwear under $100 per item (tax-free)
• School supplies under $50 per item (tax-free)
• Personal computers under $1,500 (tax-free)

The 2024 back-to-school holiday saved families an average of $67 on school shopping. If you're moving here with kids, time your school supply shopping around these holidays.

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Moving to Tampa Bay? Barrett Henry has been helping families relocate for over 23 years. Straight talk, smart strategy, no pressure.

Contact Barrett → | (813) 733-7907

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Use Tax — Florida's Gotcha

Here's what nobody tells you: Florida has a use tax that's essentially sales tax by another name. If you buy something online from an out-of-state retailer that doesn't collect Florida sales tax, you're supposed to pay use tax when filing your annual return.

In practice, most major online retailers now collect Florida sales tax automatically. Amazon, Best Buy, Target — they're all collecting it. But smaller retailers might not, and technically you owe the tax anyway.

The state estimates less than 2% of individuals actually pay use tax on their returns. Enforcement is limited, but large purchases (like a boat bought in Georgia) definitely get their attention.

Restaurant and Food Service Tax Rules

Florida's restaurant tax rules confuse newcomers from states with simpler systems:

Always Taxed

• Prepared food for immediate consumption
• Alcoholic beverages
• Food from vending machines
• Catering services

Sometimes Taxed

• Take-out food (taxed if eaten on premises, not taxed if truly "to go")
• Food trucks (depends on local permits and setup)

That Chipotle burrito bowl? If you eat it in the restaurant, it's taxed. If you walk out the door with it, technically it shouldn't be taxed — but most chains just tax everything to avoid the complexity.

Hotel and Tourism Taxes

Florida loves taxing tourists, and if you're relocating here, you'll pay these taxes while house-hunting:

Tourist Development Tax

Most counties charge an additional 1-6% tax on hotel stays under six months. In Tampa Bay:

• Hillsborough County: 5%
• Pinellas County: 6%
• Pasco County: 5%

Convention Development Tax

Some cities add another 1-2% for convention centers. Total hotel taxes in St. Petersburg can hit 14% — among the highest in the nation.

Utility and Communication Services

Florida taxes most utilities and communication services at 2.52% plus local taxes:

• Electricity
• Natural gas
• Water (in most areas)
• Phone service
• Cable and satellite TV
• Internet service

Your first utility bill in Florida will likely be higher than expected once you factor in these taxes. A $150 electric bill becomes $165 after taxes and fees.

Real Estate and Rental Property

Florida doesn't charge sales tax on real estate purchases — that's handled through different mechanisms like documentary stamps. But rental property has its own tax quirks:

Short-Term Rentals (Under 6 Months)

• Subject to sales tax
• Subject to tourist development tax
• Must register with the state

Long-Term Rentals (6+ Months)

• Generally not subject to sales tax
• Some exceptions for furnished rentals

If you're buying investment property here, understand these distinctions before setting rental rates.

Medical and Health Services

Florida's approach to medical taxation is surprisingly consumer-friendly:

Never Taxed

• Medical services by licensed professionals
• Prescription medications
• Medical equipment prescribed by doctors
• Hospital services

Sometimes Taxed

• Over-the-counter medications
• Cosmetic procedures
• Massage therapy (unless medically prescribed)
• Vitamins and supplements

Business-to-Business Transactions

If you're relocating a business to Florida, most B2B services remain untaxed:

• Consulting services
• Professional services
• Manufacturing services
• Wholesale transactions (with proper resale certificate)

But business purchases of tangible goods get taxed unless you have a valid resale certificate.

Agricultural and Food Production

Florida provides extensive exemptions for agricultural operations:

• Seeds and fertilizer
• Farm equipment
• Livestock feed
• Agricultural fuel

This reflects Florida's massive agricultural sector, from citrus to cattle ranching.

How to Pay Sales Tax in Florida

Most sales tax gets collected at the point of sale, but business owners must file returns monthly, quarterly, or annually depending on volume. Due dates are the 20th of the month following the reporting period.

Online filing through the Florida Department of Revenue's website is mandatory for most businesses. Paper returns incur additional fees.

Common Mistakes Newcomers Make

Assuming Clothing is Always Tax-Free

That $150 pair of designer jeans gets taxed on the full amount. Many people assume all clothing is exempt.

Not Understanding Prepared Food Rules

Buying ingredients at Publix is tax-free. Buying their prepared sushi is taxable.

Forgetting About Use Tax

Major online purchases from retailers that don't collect Florida tax technically require you to pay use tax.

Misunderstanding Service Taxes

Most personal services aren't taxed, but some business services are. The line isn't always clear.

Planning Your Move Around Tax Implications

When you're planning your move to Florida, factor sales tax into major purchases:

• Buy furniture and appliances before moving if your current state has lower rates
• Time clothing purchases around tax holidays
• Understand that your first few months of utility bills will include taxes you might not expect

The lack of income tax doesn't mean Florida is tax-free — it just means the taxes show up differently.

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Moving to Tampa Bay? Barrett Henry has been helping families relocate for over 23 years. Straight talk, smart strategy, no pressure.

Contact Barrett → | (813) 733-7907

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Frequently Asked Questions

Is there sales tax on groceries in Florida?

No, Florida doesn't tax most grocery items like meat, produce, dairy, and canned goods. However, prepared foods, hot food, and items consumed on-site are taxable. That rotisserie chicken from the deli counter gets taxed, but the raw chicken doesn't.

How much is sales tax on a car in Florida?

You'll pay your local sales tax rate (7.5-8% in Tampa Bay) on the full purchase price of any vehicle, whether from a dealer or private party. A $25,000 car in Pinellas County costs $2,000 in sales tax, while the same car in Hillsborough saves you $125.

Are clothes taxed in Florida?

Clothing items under $100 are tax-free, but anything $100 or more is taxed on the full amount. Accessories like jewelry, handbags, and watches are always taxed regardless of price. Florida also offers annual back-to-school tax holidays with expanded exemptions.

Do I have to pay sales tax on services in Florida?

Most personal services like haircuts, home repairs, and medical care aren't taxed in Florida. However, you will pay sales tax on digital services like streaming subscriptions, downloaded software, and cloud storage services.

What is Florida's use tax?

Use tax is what you owe when you buy something from an out-of-state retailer that doesn't collect Florida sales tax. You're supposed to report and pay this on your tax return, though enforcement is limited except for large purchases like vehicles or boats.

Are prescription drugs taxed in Florida?

Prescription medications are exempt from sales tax in Florida. However, over-the-counter medications, vitamins, and supplements are taxable. Medical equipment prescribed by a doctor is also tax-free.

How much sales tax do hotels charge in Florida?

Hotels charge the local sales tax rate plus tourist development tax, which can total 12-14% in Tampa Bay counties. Pinellas County has some of the highest rates at up to 14% total, while Hillsborough runs about 12.5%.

When are Florida's tax-free holidays?

Florida typically holds a back-to-school sales tax holiday in late July or early August, lasting 10-14 days. During this period, clothing under $100, school supplies under $50, and computers under $1,500 are tax-free. Additional holidays sometimes occur for disaster preparedness or other specific categories.