Florida Sales Tax Guide

Florida General Sales Tax Information:

Sales Tax Registration Information for Florida

Businesses that have a physical presence in Florida need to register for a sales tax permit with the Florida Department of Revenue. Additionally, sellers that do not have a physical presence but meet the economic nexus threshold of $100,000 must collect and remit sales tax. Businesses that cross the Florida economic nexus threshold must register for a sales tax permit upon crossing the threshold.

• Florida’s Economic Nexus Law: What Does This Mean for You?
• Do You Need to Get a Sales Tax Permit in Florida?
• How to Register for a Sales Tax Permit in Florida?

Businesses can register for a sales tax permit online through the Florida Department of Revenue website or by submitting a paper Florida Business Tax Application. The registration process requires basic business information, such as the type of business, ownership information, and estimated monthly sales.

• How to File and Pay Sales Tax in Florida?
  

What Products are Subject to Sales Tax in Florida?

Per the FL DOR Sales and Use Tax page, each sale, admission, storage, or rental in Florida is taxable, unless the transaction is exempt. Sales tax is added to the price of taxable goods or services and collected from the purchaser at the time of sale.

Is Clothing Taxable in Florida?

Clothing is generally taxable in Florida, except baby and toddler clothing. Effective July 1, 2023, baby and toddler clothing, apparel and shoes intended for children ages 5 and under are exempt per the Sales and Use Tax Exemption for Baby and Toddler Products in the Tax Information Publication ​​No: 23A01-09.

Is CBD Taxable in Florida?

CBD is generally taxable in Florida as it is considered tangible personal property. The sale of CBD is typically legal in Florida as long as the THC concentration does not exceed 0.3% THC on a dry weight basis. See the Hemp and CBD Information publication for specific information regarding the legality of CBD in Florida.

• CBD Sales Tax State-by-State Guide: Which States Require Sales Tax on Cannabidiol (CBD)?

Are Dietary Supplements Taxable in Florida?

Dietary supplements are generally exempt in Florida. Dietary substitutes such as supplements are listed as nontaxable on the Nontaxable Medical Items and General Grocery List provided by the FL DOR.

Are Digital Products Taxable in Florida?

Digital products are generally exempt in Florida. Digital products are considered nonphysical items that are electronic in nature. Digital products are not considered tangible personal property and are therefore considered exempt. 

Are Diapers Taxable in Florida?

Diapers are exempt in Florida. Effective July 1, 2023, certain baby and toddler items, including diapers, are exempt from sales tax per the Sales and Use Tax Exemption for Baby and Toddler Products in the Tax Information Publication ​​No: 23A01-09.

Are Feminine Hygiene Products Taxable in Florida?
Feminine hygiene products are exempt in Florida effective January 1, 2018 per the FL DOR Tax Information Publication No: 17A01-15.

Is Food Taxable in Florida?

Food is generally exempt in Florida. Per Rule 12A-1.011 of the Florida Administrative Code, food products for human consumption, whether processed, cooked, raw, canned, or in any other form that is generally regarded as food, are exempt.

Are Leases and Rentals Taxable in Florida?

Leases and rentals are generally taxable in Florida unless a specific exemption applies per the FL DOR Sales and Use Tax on Tangible Personal Property Rentals publication.

• Which States Charge Sales Tax on Rentals and Leases?

Is SaaS Taxable in Florida?

SaaS is generally exempt in Florida. Based on FL DOR Technical Assistance Advisement 16A-014, the sale of subscriptions to software and the sales of cloud-computing services are not subject to Florida sales and use tax. Further, the sale of customized software that is delivered electronically is also exempt.

Are Services Taxable in Florida?
Most services are exempt in Florida. There are a few exceptions to this such as nonresidential cleaning services, nonresidential pest control services, and burglar/security protection per Rule 12A-1.0161 Sales and Use Tax on Services of the Florida Administrative Code.

Are Shipping & Handling Charges Taxable in Florida?

Shipping and handling charges are generally taxable in Florida. Per Rule 12A-1.045 of the Florida Administrative Code, Florida sales tax is imposed on the total sales price of taxable tangible personal property. "Sales price" is defined as the total amount paid for tangible personal property, including any services that are a part of the sale. Delivery services are typically sold in conjunction with the sale of tangible personal property. Charges for delivery services are generally subject to tax when imposed with the sale of a taxable item. However, delivery charges are not subject to tax when the charge is separately stated on an invoice and the charge can be avoided by the purchaser choosing to pick up the item.

Are Medical Products Taxable in Florida?

Medical products are generally exempt in Florida. Rule 12A-1.020 Drugs, Medicine and Medical Products and Supplies of the Florida Administrative Code provides detailed guidance on the specific taxable and exempt medical products. FL DOR also provides a list of nontaxable medical products in the Nontaxable Medical Items and General Grocery List.

Sales Tax Audit Risk in Florida

What Are the Chances of an Audit in Florida for Sales Tax?

The FL DOR does not provide the statistics on sales tax audits. However, they do outline how businesses are selected for audits.This includes, but is not limited to, IRS information, information sharing programs with other states and state agencies, computer-based random selection, and analysis of Florida tax return information.

What Are the Penalties of Not Paying Sales Tax in Florida?

Failing to file and remit sales tax can result in various consequences. The FL DOR Sales and Use Tax website outlines the penalties and interest for past-due returns. Taxypayers who file or pay their sales tax returns late will be assessed a 10% penalty of the tax amount owed, but not less than $50. Electronic filers that fail to file a return result in a $10 penalty, and a failure to pay results in a $10 penalty. These penalties are in addition to any other penalties that may apply. Further, there is a floating rate of interest to underpayments and late payments. Interest rates can be found on the FL DOR Tax and Interest Rates page. A person who has intent to evade payment of taxes can be subject to criminal charges and additional fees that vary widely based on the amount of tax due. Read more about this in the Florida Senate page.

• What Are the Penalties for Not Paying Sales Tax?

Additional Sales Tax News in Florida

• TaxByte: Florida’s New Sales Tax Holidays for Fiscal Year 2023-2024