Does Florida have an inheritance or estate tax?

Florida has no state inheritance or estate tax. The federal estate tax does apply, with different rules for residents and nonresidents.

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Florida tax advantages for your business

Updated October 2026. Sources: Florida Department of Revenue and Florida Division of Corporations (Sunbiz).

Florida is one of the lowest-tax states in the country. Its main advantage is that it does not tax personal income, because the state constitution prohibits it. For an LLC whose income passes through to the owner, that means only federal tax is paid in practice.

To compare Florida with other states, you also need to know the taxes it does charge. Here is each one, with its rate and who it affects.

What Florida does not charge

Personal income tax, for residents and nonresidents alike.
State inheritance or estate tax. The federal estate tax, however, does apply.
Intangible personal property tax. Stocks, bonds and accounts have paid no state tax since 2007.
Franchise tax. Unlike some other states, Florida charges no annual tax simply for the company existing. You only pay the Annual Report fee, explained below.
Tax on commercial rent. Florida repealed it effective October 1, 2025 (HB 7031). Until then, it was the only state that charged it.

The taxes that do apply

Tax	Rate	Who it affects
Corporate income tax	5.5% of taxable income; a first portion of taxable income is exempt	C corporations and LLCs that elected to be taxed as corporations. It does not apply to a standard LLC or to an S corporation
Sales tax	6% state, plus a county surtax (1% in Miami-Dade, for 7% in total)	Anyone who sells goods or certain taxable services in Florida
Tangible personal property tax	Set by each county; a first portion of the property’s value is exempt	Businesses with equipment, furniture or machinery. A return is filed every year by April 1
Reemployment (unemployment) tax	2.7% on the first portion of each employee’s wages (the taxable wage base), for new employers	Businesses with employees in Florida
Documentary stamp tax	A set rate per unit of value on deeds, and a lower rate on promissory notes and mortgages	Real estate purchases and loans documented in Florida

What it takes to keep your company in good standing

Every company registered in Florida files an Annual Report on Sunbiz each year, between January 1 and May 1.

Type of company	Annual Report fee
LLC	Set state fee for LLCs
Corporation	Set state fee for corporations
Late filing fee	Applies if you file after May 1

If the report is not filed, the state administratively dissolves the company in September. We take care of it through our Annual Report service. Every company in Florida also needs a registered agent with a physical address in the state.

Which structure makes sense in Florida?

LLC. The most common choice among entrepreneurs and foreign owners. It pays no state corporate income tax: income passes through to the owner, and Florida does not tax personal income. See how to form an LLC.
C corporation. Pays the 5.5% state tax on taxable income above the exempt amount, plus federal tax. It makes sense if you are looking for investors or want to reinvest your profits. See how to form a corporation.
S corporation. Only US citizens or residents can elect it, so a nonresident foreign owner cannot have one.

For the full comparison, see the difference between a corporation and an LLC.

If you are a foreign national, keep in mind that paying no state tax in Florida does not exempt you from federal tax or from your information reporting obligations. We explain this in our guide to taxes for foreign nationals and nonresidents.

Frequently asked questions

Does Florida have an income tax?
Not on individuals. On C corporations, yes: 5.5% of taxable income above the exempt amount.

Does an LLC pay state taxes in Florida?
An LLC taxed as a pass-through entity (the default option) pays no state corporate income tax. It does have to pay the Annual Report fee every year and, if it sells products, collect sales tax and remit it to the state.

How much does it cost to keep an LLC in Florida each year?
You pay the set state Annual Report fee, plus whatever your registered agent costs. If you file after May 1, a late fee is added on top.

What is the sales tax in Miami?
7%: 6% state tax plus 1% for Miami-Dade County.

Does Florida have an inheritance tax?
Florida has no state inheritance tax. The federal tax does apply, with different rules for residents and nonresidents.

This content is for information only and does not replace advice from a certified public accountant (CPA). Rates are as of October 2026, and the state may change them.

Want to open your company in Florida or move it here? Book a consultation and we’ll explain which structures are open to you and what each would cost.

About the author

Zulma Eliana Bourelly

Zulma Eliana Bourelly is the founder of Riveros Corp (Riveros International Business Corp, Miami, Florida). Since 2009 she has helped entrepreneurs, companies, and religious and nonprofit organizations, both in the United States and from their home countries without traveling to the US, form and maintain their US companies and meet AML/KYC requirements. She has been a Florida Notary Public since 2010, with state registration as a Remote Online Notary (RON); a County Court Mediator certified by the Florida Supreme Court; a Certified Anti-Money Laundering Specialist (CAMS) by ACAMS; and a Certified Notary Signing Agent with the National Notary Association (NNA). She holds a law degree from the Universidad Nacional de Colombia and is not licensed to practice law in Florida or anywhere in the United States. She writes in Spanish and English about company formation, compliance and public records on US Jurisdiction, the group's blog. Service in Spanish, English and Italian. Legal notice: I AM NOT AN ATTORNEY LICENSED TO PRACTICE LAW IN THE STATE OF FLORIDA, AND I MAY NOT GIVE LEGAL ADVICE OR ACCEPT FEES FOR LEGAL ADVICE.