Florida Business Tax Basics: Federal, State, and Local Tax Obligations

Quick Answer: Florida businesses must handle federal income and payroll taxes, Florida corporate income tax for C‑corporations, state sales and use tax, reemployment tax for employers, and a mix of local property and business license taxes.

Understanding each layer of these Florida business taxes helps keep a company compliant and avoids penalties in 2026. For Tampa Bay area business owners specifically, local tax rates and requirements can differ from those in Miami-Dade or Orange County, so it’s important to confirm obligations in your specific jurisdiction.

Disclaimer: This article is for informational purposes only and does not constitute tax, legal, or accounting advice. Every business situation is unique. You should consult with a qualified tax professional or CPA regarding your specific circumstances before making any tax-related decisions.

Key Takeaways

• Florida businesses must comply with federal income tax requirements, including filing annual returns and paying taxes on business profits. Common forms include Form 1120, 1120-S, 1065, and Schedule C.
• Florida does not impose a personal income tax, but C‑corporations are subject to Florida corporate income tax on their taxable income, filed using Form F-1120.
• State-specific taxes in Florida include sales and use tax, which many businesses must collect, report, and remit on taxable goods and certain services using Form DR-15.
• Local taxes vary by county and city, and may include business licenses, local sales surtaxes, and property taxes, so owners should confirm rules where they operate. Property taxes may require Form DR-405 for tangible personal property.
• Understanding and managing all federal, state, and local tax obligations reduces the risk of penalties, interest, and enforcement actions and keeps the business in good standing.

Understanding Federal Tax Obligations for Florida Businesses

Florida companies face the same federal vs state taxes framework as businesses in other states. The Internal Revenue Service (IRS) oversees federal income tax, payroll tax, and self-employment tax, while Florida agencies handle state‑level obligations.

At the federal level, business owners should identify their entity type, determine what forms to file, and track payroll and owner compensation carefully. Many owners review IRS guidance alongside resources such as How federal taxes affect Florida businesses in 2026 to keep policies current.

Federal Income Tax Requirements

Federal income tax applies to business profits, but the way it is reported depends on the entity structure. C‑corporations file their own federal return, while pass‑through entities report income on the owners’ individual returns.

Key points for income tax compliance include:

• C‑corporations generally file Form 1120 and pay federal income tax directly on corporate profits.
• Sole proprietors typically report business income and expenses on Schedule C attached to Form 1040.
• Partnerships and multi‑member LLCs usually file an informational return (Form 1065) and issue Schedules K‑1 to the owners.
• S corporations file Form 1120‑S; income flows through to shareholders’ individual returns.

Federal tax brackets apply to the individual owners of pass‑through entities, not the business itself. For C‑corporations, a flat corporate rate applies at the federal level, separate from any Florida corporate income tax that may also be due.

Common question: Do all Florida LLCs pay federal income tax themselves?
Most LLCs are treated as pass‑through entities; the federal income tax typically falls on the owners, not the LLC, unless the LLC elects to be taxed as a corporation.

Payroll and Self-Employment Taxes

Any Florida business with employees must handle federal payroll taxes. This includes withholding income tax and the employee portion of Social Security and Medicare, plus paying the employer portion.

Key federal payroll and self-employment responsibilities:

• Employers must withhold Social Security and Medicare from employee wages and remit both the employee and employer portions to the IRS using Form 941 (quarterly) and Form 940 (annual).
• Federal income tax must also be withheld from employee paychecks based on Form W‑4 elections.
• Deposits are made on a monthly or semi-weekly schedule, depending on the business’s total payroll tax liability.
• Self-employed individuals (including many sole proprietors and single‑member LLC owners) pay self-employment tax, covering both sides of Social Security and Medicare, typically via estimated quarterly payments using Schedule SE (Form 1040) and Form 1040-ES.

Many Florida businesses engage payroll specialists or consider outsourcing payroll tax services to a CPA when payroll grows more complex. Proper withholding, timely deposits, and accurate reporting help avoid IRS penalties and notices.

Florida State Tax Obligations for Businesses

At the state level, Florida business taxes look different from many other states. Florida does not impose a personal state income tax, which is often attractive to owners and investors.

However, businesses still face several important business tax types, including sales and use tax, reemployment tax, and Florida corporate income tax for certain entities. Owners should understand each of these to keep state filings accurate and up to date.

Sales Tax and Use Tax in Florida

Sales and use tax are central to state tax obligations in Florida. The state imposes a base sales tax rate of 6% on many retail sales, with some services and specific transactions also being taxable.

Key aspects of sales and use tax in Florida:

• The statewide sales tax rate is 6%, and many counties add a local surtax that increases the total rate on transactions in that county.
• Businesses selling taxable goods, and some taxable services, must register, collect, and remit sales tax to the Florida Department of Revenue using Form DR-15.
• Use tax applies when taxable items are purchased without Florida sales tax (for example, from out-of-state vendors) but are used, stored, or consumed in Florida.
• Returns are filed monthly, quarterly, or annually depending on volume, as assigned by the state.

New businesses often review a Florida business tax registration guide and more detailed sales tax resources such as Florida sales tax guidance for service businesses to understand which of their products or services are taxable.

Reemployment Tax

Florida’s reemployment tax, formerly known as unemployment tax, funds state unemployment benefits. This tax applies only to employers with qualifying employees, not to independent contractors or self-employed owners.

Key points about Florida reemployment tax:

• Employers that meet wage or employee count thresholds must register for reemployment tax with the Florida Department of Revenue and file Form RT-6 quarterly.
• The tax is based on employee wages up to a set wage base each year.
• Reemployment tax rates vary by employer and are influenced by payroll size and the employer’s history of unemployment claims.
• Reports and payments are generally due quarterly.

Common question: Do all business owners need to pay reemployment tax?
Only businesses with employees must pay reemployment tax; purely owner-operated businesses with no W‑2 employees usually do not. Many owners also ask whether they should work with a professional, reviewing guidance like whether they need a CPA to file taxes in Florida as their operations expand.

Corporate Income Tax in Florida

While there is no personal income tax, Florida imposes a Florida corporate income tax on certain entities. C‑corporations doing business in Florida are generally subject to this tax on their Florida taxable income.

Key features of corporate income tax in Florida:

• Most C‑corporations pay a flat rate of 5.5% on taxable income apportioned to Florida.
• Corporations must file a Florida corporate income/franchise tax return, typically Form F‑1120.
• Some entities, such as S corporations and LLCs classified as partnerships, are usually not subject to Florida corporate income tax at the entity level, though exceptions can apply.
• Estimated payments may be required if the corporation expects to owe more than a minimum amount in tax.

Micro Q&A: Do all LLCs avoid Florida corporate income tax?
No. An LLC that elects to be taxed as a corporation for federal purposes is often also subject to Florida corporate income tax, even though it is an LLC under state law.

Local Tax Obligations for Florida Businesses

Beyond federal and state rules, local tax obligations in Florida can significantly affect the cost of doing business. Counties and municipalities may impose additional requirements that vary from one location to another.

For example, Miami-Dade County and Hillsborough County each have their own local business tax receipt requirements and property tax rates, so business owners should review the specific rules for their area.

Common local obligations include business license taxes, local sales surtaxes, and property taxes on real estate and sometimes on tangible personal property used in the business. Owners should review requirements for every county and city where they have physical operations.

Property Taxes

Property taxes are assessed at the county level and apply to real property, such as land and buildings, owned by a business. In some jurisdictions, tangible personal property used in the business—like furniture, fixtures, and equipment—may also be taxable and require filing Form DR-405 (Tangible Personal Property Tax Return).

Important property tax concepts for Florida businesses:

• Property appraisers in each county assess the value of commercial real estate annually.
• Local tax rates, often called millage rates, are set by county and municipal governments and applied to the assessed value.
• Businesses typically receive property tax bills once a year, with payment deadlines determined locally.
• Some exemptions or reductions may be available for certain types of property or uses, but these must be applied for through the local authority.

If a business leases property, the owner may pass a share of property tax through in the lease, so understanding how local property tax works is still important, even for tenants.

Business License Taxes and Fees

Many Florida counties and cities require a business license tax or occupational license. This is separate from state registration and is a local requirement tied to operating within that jurisdiction.

Typical features of local business license and fee systems include:

• Annual or periodic fees, sometimes based on business type, size, or gross receipts.
• Licenses tied to specific locations, meaning separate fees if a business operates in multiple cities or counties.
• Inspections or zoning approvals in some industries before a license will be issued.
• Penalties or closure orders if a business operates without required local licenses.

How to check local requirements: Business owners should visit their county tax collector’s or city licensing office website, or contact those offices directly, to confirm which local taxes and occupational licenses apply.

Many owners also coordinate with a local accounting firm in Tampa or other Florida city if they operate across multiple jurisdictions. In Jacksonville, for instance, local business tax receipt requirements and deadlines may differ from those in South Florida municipalities, so it’s essential to verify the rules for each location where your business operates.

How to Stay Compliant with Florida Business Taxes

With multiple layers of tax, federal, state, and local, successful Florida businesses treat compliance as an ongoing process. Good recordkeeping, awareness of filing deadlines, and proactive support from advisors all contribute to smooth operations.

In 2026, a growing number of small and mid‑sized companies use year‑round planning, often supported by cloud-based tools and CPA assistance, to reduce surprises at filing time and keep their small business taxes in Florida under control.

Filing Deadlines and Penalties

Each type of tax carries its own deadlines. Missing them can lead to penalties, interest, and sometimes more serious enforcement actions, so a clear calendar is essential.

• Federal income tax (corporations): Due April 15, 2026 (for calendar-year C-corporations); extensions available if filed by this date. File using Form 1120.
• Federal income tax (pass-through entities): Partnerships and S corporations: Due March 16, 2026 (for calendar-year entities); extensions available if filed by this date. File using Form 1065 or Form 1120-S.
• Estimated federal tax payments: Due April 15, June 15, September 15, and January 15 each year. Use Form 1040-ES for individuals.
• Federal payroll tax filings: Form 941 due April 30, July 31, October 31, and January 31; Form 940 due January 31, 2026.
• Florida sales and use tax returns: Generally due on the 1st of the month following the reporting period and late after the 20th. File using Form DR-15.
• Florida reemployment tax reports: Due by the last day of the month following each calendar quarter (April 30, July 31, October 31, January 31). File using Form RT-6.
• Florida corporate income tax return (Form F-1120): Due May 1, 2026 (for calendar-year corporations); extensions available if requested by this date.
• Local property tax payments: Typically due by March 31, 2026, but deadlines may vary by county. Tangible personal property returns (Form DR-405) may have separate deadlines.
• Business license renewals: Deadlines vary by locality; often due annually on the anniversary of issuance or by September 30.

Key filing considerations for Florida businesses:

• Federal income tax returns for corporations are generally due on a set date after the end of the tax year, with extensions available if filed on time. Use Form 1120 for C-corps.
• Pass‑through entities also face entity‑level due dates for informational returns, which in turn affect deadlines for owners’ personal filings. Use Form 1065 for partnerships and Form 1120-S for S-corps.
• Payroll and employment taxes have regular deposit schedules and quarterly filing requirements for forms such as Form 941 and Form 940.
• Sales and use tax returns are often due monthly, though some smaller filers may have quarterly or annual schedules as assigned by the Florida Department of Revenue. File using Form DR-15.
• Reemployment tax reports and payments are typically due quarterly. File using Form RT-6.
• Local property taxes and business license renewals carry their own annual deadlines, set by local authorities. Tangible personal property may require Form DR-405.

Missing deadlines can result in late filing penalties, late payment penalties, and interest on unpaid tax. For complex situations such as multiple missed periods some owners consult resources like explanations of IRS penalties and then work with a professional to address any backlog.

Resources for Florida Business Tax Assistance

Floridians have access to several official and professional resources to help with business tax compliance. Using these tools can simplify obligations and reduce the risk of unintentional errors.

Helpful resources include:

• Florida Department of Revenue (DOR) – The DOR website provides registration portals, sales and use tax guidance, reemployment tax information, forms (such as DR-15, RT-6, F-1120, DR-405), and e‑file options.
• Internal Revenue Service (IRS) – The IRS site has instructions for federal forms (1120, 1120-S, 1065, 941, 940, Schedule C, Schedule SE), online payment portals, and small business tax guides.
• Local government offices – County tax collectors, property appraisers, and city licensing departments publish local tax rules, forms, and contact information.
• Certified Public Accountants – Many businesses work with Florida CPAs for planning, filings, and representation in the event of an audit. Firms that focus on business tax services and planning often provide ongoing support throughout the year.
• Educational articles and checklists – Guides like end‑of‑year tax tips for 2026 help owners review their records and prepare for upcoming deadlines.

Quick tip: Creating a written tax calendar and assigning responsibility within the business whether in‑house or to an outside firm can significantly reduce the chance of missed filings.

Who This Is For / Who This Isn’t For

Who This Is For

• New business owners in Florida seeking tax guidance
• Entrepreneurs unfamiliar with federal, state, and local tax obligations
• Small business owners looking to stay compliant with Florida tax laws
• Individuals considering starting a business in Florida
• Business owners needing a basic understanding of tax filing requirements

Who This Isn’t For

• Experienced tax professionals or accountants
• Businesses operating outside of Florida
• Those looking for in-depth federal tax law analysis
• Individuals seeking legal advice for tax disputes

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Frequently Asked Questions

Do Florida businesses need to pay state income tax?

No. Florida does not impose a personal state income tax on individuals, so owners of pass‑through entities do not pay state income tax on their business profits. However, C‑corporations and certain entities taxed as corporations are subject to Florida corporate income tax on taxable income earned in the state, reported on Form F-1120.

What is the sales tax rate in Florida?

The statewide sales tax rate in Florida is 6% on many taxable goods and some services. Local counties may impose additional discretionary sales surtaxes, which increase the total rate on transactions in those counties, so the final combined rate can be higher than the base 6% depending on location. Sales tax is reported using Form DR-15.

Are all businesses required to pay reemployment tax in Florida?

No. Only businesses with employees are required to pay Florida reemployment tax. The exact rate each employer pays is based on factors such as payroll size and the employer’s history of unemployment claims, which means the rate can differ significantly between businesses. Employers file Form RT-6 for this tax.

How do I know my local tax obligations in Florida?

Business owners should contact their county and city governments often through tax collector, property appraiser, or business licensing offices to confirm local requirements. Obligations may include property tax on real estate or business assets (filed with Form DR-405 for tangible personal property), local business license taxes, and local surtaxes that apply in addition to state sales tax.

What happens if I miss a tax filing deadline?

If a Florida business misses a tax filing or payment deadline, it may face penalties and interest from the relevant authority, whether that is the IRS, the Florida Department of Revenue, or a local government.

In more complex cases, late or missing filings can escalate into collection actions or audits, so many owners consult a CPA promptly to address issues and bring accounts back into compliance.