Florida Taxes Explained
Taxes paid in Florida are a major reason people choose to become a Florida resident. Compared to other states, you can save a huge amount of money by avoiding high taxes. Read about the different kinds of taxes that are or are not imposed on Florida residents.
Florida Income Tax
Not only does Florida lack extremely cold winters, the sunshine state also lacks a state income tax. You will have plenty of money left over for sunscreen products from not paying a state income tax. Florida residents are still required to pay federal taxes through the yearly IRS federal tax return.
Corporate Income Tax
Florida income tax for individuals is not required, but corporate income tax is a reality. Corporations must file a taxes, whether the corporation has made a profit or not. The tax rate for a Florida corporation is the net income multiplied by 5.5%.
Sales Tax in Florida
Florida is one of the cheapest states to pay sales tax on goods. The base rate is only 6%. When we are talking about spending thousands of dollars, this low sales tax rate can save you a bundle. Some counties may have an additional tax for local projects benefiting the citizens of that county. Because of this, depending on where you shop, the tax can be 6% to 8%.
Florida Estate Tax
In Florida, there is not an estate tax or inheritance tax. When a person is willed, non of the money will go to the state. This is one reason that Florida is very popular with the retirement community.
Florida Intangibles Tax
In 2007, a law requiring that tax be paid on investments was repealed. Individuals with Florida residency are not subject to intangibles tax.
Florida State Property Tax
Florida property tax, depending on the county charging this fee, are some of the highest in the entire country. Much like sales tax, property tax varies depending in what county you are in. There are ways to reduce property tax.
Senior Citizen Property Tax Exemptions
Senior citizens can qualify for a property tax exemption in certain counties and cities only. This not a state wide exemption. The exemptions are valued at $50,000 for Florida residents that are 65+ years old and have a yearly income of below $20,000. This tax break is in addition to the Florida Homestead Exemption.
Homestead Property Tax Exemptions
Homestead exemptions come in two ways. The total availability can be $50,000. The first half of the exemption in the amount of $25,000 applies to all taxes. The second half applies to non-school taxes only.
Blindness Property Tax Exemptions
Florida residents that are legally blind can receive exemptions of $500.
Disability Property Tax Exemptions
Disability exemptions refer to people that are partially or totally disabled. Quadriplegics will pay no taxes, while people who are partially disabled and have a very low income can be exempt as well.
Veterans Property Tax Exemptions
There are various levels of exemption for veterans. These include disabled veterans, honorably discharged and recent deployed members of the military can all enjoy different levels of exemption.
For more information on these tax topics, visit http://floridarevenue.com/.
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