Florida Sales Tax

Sales tax is a state-imposed tax on the sale of tangible goods and some services. It is collected by the seller and remitted to the state and local tax authorities. Florida requires businesses that have nexus in the state to register, collect, and report sales taxes. Florida Sales Tax Rate is 6%. Failure to do so can result in fines and penalties. In the past, a business with sales tax nexus in Florida was required to register and collect sales tax only if it had physical presence in the state, such as offices, retail stores, or warehouses. However, in June 2018, the Supreme Court overruled this rule and allowed states to tax remote sellers based on their economic and virtual connections with the state, known as economic nexus.

Sales and use taxes are taxable in Florida for most goods and services, except groceries, some medicines or common household remedies, seeds or fertilizer, and prosthetic or orthopedic instruments. Consumers must pay a use tax when they purchase taxable items from out-of-state retailers that did not charge sales tax or for taxable items purchased in Florida but not paid for.

The penalty for late filing and payment is 10% of the tax due, or $50, whichever is higher. You can avoid these penalties by electronically filing and paying sales tax on time. You can also claim a collection allowance, which is 2.5% of the first $1,200 of tax due (not to exceed $30 per reporting location).

Florida Sales and Use Tax Registration

You can register for Florida sales and use tax online or submit a paper business registration form (Form DR-1N). Once you’re registered, you must pay sales tax by the 20th of each month for the sales you made during that month. You must also report and pay any applicable taxes or fees, such as the prepaid wireless fee or lead-acid battery fee.

Florida Sales Tax Exemption

There are several types of sales tax exemptions in Florida, depending on the item and the situation. Here are some examples:

• Most prepared food is not exempt from sales tax, even if purchased from a grocery store. However, you won’t pay sales tax on most unprepared food items, such as fruits, vegetables, meat, eggs, and milk.
• Prescription drugs and over-the-counter medications are exempt from sales tax.
• Baby food and diapers are exempt from sales tax.