Florida‘s tax system ranks 4th overall on the 2025 State Tax Competitiveness Index. Florida boasts no individual income tax, a competitive 5.5 percent corporate income tax, and a sales tax rate which—despite the lack of an individual income tax—is lower than those levied in many other southern states. Unlike many of its regional competitors, Florida does not tax capital stock, and its corporate income tax largely adheres to national norms, yielding a highly competitive overall tax code. However, the state falls short on its treatment of capital investment, only allowing corporate taxpayers to claim 15 percent of the first-year expensing of machinery and equipment offered under the federal tax code. With full expensing currently phasing down at the federal level, states are increasingly exploring making 100 percent first-year expensing permanent, whereas Florida only offers a fraction of a declining federal allowance.
Florida offers a de minimis exemption for tangible personal property, but at $25,000, it is relatively low and offers a possible avenue for improvement. The state is also unusual in imposing a commercial lease tax. Nevertheless, in most regards, the state is among the more competitive in the country.
| Category | Rank | Rank Change | Score |
|---|---|---|---|
| Overall | 4 | 0 | 6.78 |
| Corporate Taxes | 16 | 1 | 5.48 |
| Individual Income Taxes | 1 | 0 | 10.00 |
| Sales Taxes | 14 | 1 | 5.22 |
| Property Taxes | 21 | 4 | 5.22 |
| Unemployment Insurance Taxes | 10 | 1 | 5.63 |
Get facts about taxes in your state and around the U.S.
With the significant potential for state revenues, and the prior political success of arguments that legalization can shift consumers to safer legal markets, it seems likely that states will continue to see legislation and ballot initiatives to legalize marijuana at the state level—even states that failed to do so this election.
5 min read
In addition to the federal estate tax, with a top rate of 40 percent, 12 states and DC impose additional estate taxes, while six states levy inheritance taxes.
7 min read
Over 500 million premium cigars were sold in the United States in 2023. With each sale comes a complex tax landscape.
4 min read