0 – 5.5% Corporate Tax Rate

Florida is one of only several states with a 0% state income tax on businesses other than C Corporations. And even for these business entities, the tax rates are low. The maximum corporate tax rate on federal taxable income is 5.5%.

0% Personal Income Tax

Florida residents enjoy a 0% tax burden when it comes to state income tax. This means that even Social Security retirement benefits, pension income and income from an IRA or a 401(k) are all untaxed at the state level. While residents still pay federal income tax, the relief from these state-level taxes offers more opportunities for investment.

Manufacturers

Tax-Free Electricity 

Charges for electricity used directly and exclusively at a fixed location to operate machinery and equipment that is used to manufacture, process, compound, or produce items of tangible personal property for sale, or to operate pollution control equipment, recycling equipment, maintenance equipment, or monitoring or control equipment used in such operations, may be exempt from the sales tax. Read more. 

• If 75 percent or more of the electricity or steam used at the fixed location is used to operate qualifying machinery or equipment, 100 percent of the sales tax on the charges for electricity or steam used at the fixed location is exempt.
• If less than 75 percent but 50 percent or more of the electricity or steam used at the fixed location is used to operate qualifying machinery or equipment, 50 percent of the sales tax on the charges for electricity or steam used at the fixed location is exempt.

No Machinery State Sales Tax

An exemption from Florida state sales and use tax applies to the amount charged to customers for labor associated with the maintenance or repair of:

• New Manufacturers – In order to qualify for the new business exemption, the machinery and equipment must have been purchased, or a purchase agreement made, prior to the date the business first begins to produce a product for inventory or immediate sale. Purchased machinery and equipment must be received within twelve months of the date that production began.
• Expanding Manufacturers – Industrial machinery and equipment is exempt from tax when purchased by an expanding business.

No Estate Tax and Inheritance Tax

Florida doesn’t collect any estate or inheritance tax.

13.947 Avg. Millage Rate

Sarasota County specifically has one of the lower millage rates in the state at 13.947. This includes the 1 mill for public schools—which consistently drives the success of our public school district. Comparatively, 58 of the 67 counties in Florida have a higher millage, bringing the state average to 18.097.

7% Sales and Use Tax

Florida charges a 6% sales and use tax, with a 1% local tax set by local governments. Sarasota County has a 1% sales and use tax, which makes the total 7%.

Florida’s tax climate provides these stable and highly favorable advantages that make Florida a profitable location for every type of business

• NO corporate franchise tax on capital stock
• NO state-level property tax assessed
• NO property tax on business inventories
• NO property tax on goods-in-transit for up to 180 days
• NO sales and use tax on goods manufactured or produced in Florida for export outside the state
• NO sales tax on purchases of raw materials incorporated in a final product for resale, including non-reusable containers or packaging
• NO sales and use tax on co-generation of electricity