Florida State Taxes: What You’ll Owe in the 2026 Tax Season

Despite having no income tax, Florida has a relatively low sales tax rate when compared with neighboring Southern states and, overall, is considered one of the more competitive states when it comes to taxes, according to the Tax Foundation.

The big picture:

• Income tax: No income tax.
• Property tax: The effective property tax rate is 0.78 percent of a home’s assessed value, according to the latest data from the Tax Foundation.
• Sales tax: 6 percent.

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How is income taxed?

Florida has no income tax.

What about investment income?

Florida does not tax capital gains or investment income because it has no income tax.

Are Social Security benefits taxed?

Florida does not tax Social Security benefits.

How is property taxed?

The effective property tax rate was 0.78 percent of a home’s assessed value, though specific rates vary by county. The lowest rate in the state was 0.44 percent in Holmes County, while the highest was 0.99 percent in Alachua County. The lowest median property tax paid was $600 in Holmes County, while the highest was $4,129 in Monroe County, according to the Tax Foundation.

What about sales and other taxes?

• Sales tax: Florida has a 6 percent statewide sales tax. Local sales tax rates vary, averaging 0.98 percent, bringing the average combined sales tax rate to 6.98 percent in 2026, according to the Tax Foundation. Exemptions: Groceries, prescription medications, some batteries, bicycle helmets, and smoke and carbon monoxide detectors, among other items, are exempt from sales tax.  
• Gas and diesel: Gasoline and diesel fuels are taxed at 22 cents per gallon.  
• Vehicle tax: Vehicle purchases are subject to the state’s 6 percent sales tax. Initial registration costs $225, with renewals available for one- or two-year periods. Annual renewals for automobiles up to 2,499 pounds are $14.50, while those for vehicles weighing 2,500 to 3,499 pounds are $22.50 and those weighing 3,500 pounds or more are $32.50.  
• Alcohol: Beer is taxed at 6 cents per pint or 12 cents per quart. Wine and spirits less than 17.259 percent alcohol are taxed at $2.25 per gallon. Stronger wines are taxed at $3 per gallon. Spirits up to 55.78 percent alcohol are taxed at $6.50 per gallon. Spirits above that level are taxed at $9.53 per gallon. Natural sparkling wine is taxed at $3.50 per gallon, and cider is 89 cents per gallon.  
• Lottery: Florida does not tax income, including lottery winnings.

Will my heirs or estate have to pay inheritance or estate tax?

Florida has no estate or inheritance tax.

What are the tax breaks for older residents?

• Standard homestead exemption: Property owners living in their residence may be eligible for an exemption of up to $50,000. The first $25,000 applies to all property taxes, including school district taxes. The additional exemption of up to $25,000 applies to the assessed value of over $50,000 and only to non-school taxes. You can learn more about this exemption here.
• Widow/widower exemption: Florida offers a $5,000 property tax exemption for widows and widowers.
• Additional homestead exemptions: Most Florida municipalities have adopted additional exemptions. One is available to property owners who live in their residence and are age 65 and older with an income of no more than $37,694 in 2025. It provides an exemption of up to $50,000. The other one exempts the full value of a property and is available to homeowners 65 and older who have lived in their residence for at least 25 years, have a home value of $250,000 or below and have an income of $37,694 or less.