Florida has a reputation as a tax-friendly state — and in many ways, it is. No personal income tax. No corporate income tax on S-corps and most LLCs. But sales tax is a different story. Florida's sales tax system has enough complexity to trip up even careful business owners. Here's what you need to know in 2026.
The Base Rate — and the County Surtax on Top
Florida's state sales tax rate is 6%. But most transactions in Florida are also subject to a discretionary sales surtax set by individual counties. In Greater Orlando, that means:
- Orange County: 0.5% surtax → total rate 6.5%
- Seminole County: 1% surtax → total rate 7%
- Osceola County: 1.5% surtax → total rate 7.5%
- Lake County: 1% surtax → total rate 7%
The county surtax applies to the first $5,000 of a taxable sale. For a transaction over $5,000, you collect surtax only on the first $5,000. The rate that applies is determined by where the buyer takes possession of the goods — not where your business is located.
What's Taxable in Florida
Florida taxes the sale of tangible personal property — physical goods you can touch and move. This includes retail merchandise, materials, supplies, and most products sold in-state or shipped to Florida buyers.
Some services are also taxable. Notably: commercial real property rentals (the lease of office, retail, or warehouse space) are subject to Florida sales tax at a reduced rate — currently 2% at the state level as of 2024 reductions, plus applicable county surtax. This surprises many landlords and tenants alike.
Other taxable services include: certain repair services on tangible property, pest control, some cleaning services, and parking.
What's NOT Taxable in Florida
- Most professional services: Legal fees, accounting, consulting, medical services, staffing — generally not subject to sales tax
- Most groceries and food for home consumption: Exempt, though prepared food and restaurant meals are taxable
- Prescription drugs and most medical equipment: Exempt
- Agricultural inputs: Seeds, fertilizer, farm equipment — largely exempt
Special Situations That Catch Business Owners Off Guard
eCommerce and economic nexus: If your Florida business sells online and ships goods to customers in other states, you may have sales tax obligations in those states. Florida also requires out-of-state sellers to collect Florida sales tax if they exceed $100,000 in annual Florida sales. If you're an eCommerce seller, this is an area that warrants a careful review.
Short-term rentals: If you rent a residential property for periods of six months or less — think Airbnb or VRBO in the Orlando area — you're subject to Florida sales tax and the county's tourist development tax (TDT). In Orange County, that's an additional 6% TDT on top of state and county sales tax. Short-term rental operators who aren't registered and collecting properly face significant exposure.
Commercial rent: Many Florida business owners are surprised to learn their landlord should be collecting sales tax on their commercial lease payments. If you're a landlord with commercial tenants and you're not collecting sales tax on rent, you're out of compliance.
How to Collect and Remit: The DR-15
Florida sales tax is reported and remitted on Form DR-15 through the Florida Department of Revenue's online portal (floridarevenue.com). The filing frequency depends on your annual sales tax liability:
- Monthly filers: Liability over $1,000/year — due on the 20th of the following month
- Quarterly filers: Liability between $501–$1,000/year
- Semi-annual filers: Liability between $101–$500/year
- Annual filers: Liability $100 or less per year
Late filing penalties in Florida start at 10% of the tax due, with a minimum penalty of $50. Even if you owe nothing for a period, you must file a return or you'll receive a penalty notice.
Common Mistakes to Avoid
- Not collecting sales tax on commercial rent payments
- Forgetting the county surtax — collecting 6% when you should be collecting 6.5% or 7%
- Missing the filing deadline even when you have $0 to remit
- Failing to register before you start selling — sales tax registration is required before your first taxable sale
- Assuming a service is exempt without verifying — the list of taxable services in Florida is longer than most people expect
Florida sales tax compliance is manageable when your bookkeeping is organized and your filing calendar is set up correctly. If you're not sure where you stand — or if you've inherited a business with compliance gaps — a professional review is worth doing sooner rather than later.
Beyond Insite works with small businesses across Greater Orlando to make sure sales tax collection, record-keeping, and filings stay on track. Contact us to schedule a free consultation.