After Hawaii, Florida is the southernmost of all US states. It is made up of the Florida peninsula and the mainland Florida Panhandle, together covering 170,000 km². The Gulf of Mexico borders its south and west coasts, and to the north Florida borders Georgia and Alabama. With more than 23 million residents (as of 2024), the Sunshine State is the third most populous in the USA.
Florida is one of the most international US states, with a fast-growing consumer market, a business-friendly environment and a large pool of highly skilled workers. That is why the Sunshine State draws not only millions of tourists every year but businesses too. Florida is a hub for international business, trade and investment.
A dynamic market & business-friendly climate in the Sunshine State
Ranked against the world, Florida's economy would place among the top 20, ahead of nations such as the Netherlands or Turkey. It is one of the fastest-growing economies in the USA. Low tax rates, political and monetary stability, business-friendly policies and competitive business and living costs explain why companies find Florida so attractive. Its huge market offers enormous opportunities to businesses of every kind.
The following also shows how much potential Florida holds for a wide range of industries: by revenue, the state ranks among the national leaders in manufacturing, finance, information technology, aerospace, and logistics and transportation.
The Sunshine State has become home to many branches of international companies. Whether headquarters, production site or sales and marketing office: easy access to global markets makes the case for Florida.
State-of-the-art infrastructure opens the gateway to Latin America
Thanks to its strategic location and advanced infrastructure, Florida enables efficient, effective transport to the entire world. Commercial airports are plentiful, as are deep-water ports and a well-developed highway and rail network. Exports of goods and services exceed $100 billion a year.
Alongside its outstanding infrastructure, access to capital and a often multicultural, multilingual workforce are the main reasons Florida is the main gateway to Latin American and Caribbean markets, for local and international companies alike. The Sunshine State accounts for a third of all US trade with the region, and its concentration of Latin America-focused financial service providers is unmatched anywhere in the world.
A large talent pool & a culture of innovation
Besides a strong work ethic, the Sunshine State's workforce of more than ten million brings high (technical) qualifications and linguistic and cultural diversity. These workers are one of the driving forces behind Florida's economic strength.
They are trained at academic institutions that truly deserve to be called outstanding, even by global standards. Modern science and engineering curricula and partnerships between universities and businesses ensure first-class programs shaped around what future employers want and need. As a result, skilled workers are readily available, and labor costs in Florida are very competitive compared with other top locations.
Developing and using innovative technology is part of Florida's history. The state is home to the American space program and the birthplace of the first IBM Personal Computer. Today more than 36,000 high-tech companies employ around 600,000 of the state's residents and generate over twelve billion dollars in exports every year. Beyond high tech, Florida is just as cutting-edge: marine biology, space exploration and propulsion systems research have their place alongside health research.
Floridians are building breakthrough solutions for an exciting and promising tomorrow.
Income tax in Florida
Florida levies no income tax. However, federal income tax is still due.
Corporate tax in Florida
Florida levies a corporate tax of 5.5%. On top of that, federal corporate tax is due.
Sales tax in Florida
The USA has no VAT on the European model. Instead, states, counties and municipalities levy a local sales tax on the sale of goods (but not services).
Sales tax rate in Florida
Florida's state sales tax is 6%. Cities and counties add an average of 1.05%, so the combined rate averages 7.05%.
Florida nexus laws & sales tax
Learn more about economic nexus laws in the context of sales tax. Here you'll find our compact introduction to US tax law for European entrepreneurs.
Effective date
Included transactions:
Taxable sales of tangible personal property delivered physically into the state. Taxable services are not included in the threshold.
Treatment of exempt sales:
Exempt sales and exempt services are not included in the threshold
Trigger:
Sales volume only
Sales/transaction threshold:
$100,000
Evaluation period:
The threshold applies to the previous calendar year
Additional information:
- Registration requirements: Florida has not specified how quickly a remote seller must register once it crosses the economic nexus threshold. It could be as soon as the next transaction.
- Florida SB 50
Florida marketplace sellers & sales tax
Learn more about registration requirements for marketplace sellers
Effective date for marketplace facilitators:
July 1, 2021
Economic nexus threshold:
A marketplace facilitator that has a physical presence in Florida, or that makes or facilitates more than $100,000 in taxable sales of tangible personal property in Florida in the previous calendar year, must collect and remit sales tax on behalf of marketplace sellers. When calculating the threshold:
- Marketplace facilitators include direct and third-party sales in their thresholds
- Remote sellers should exclude sales made through a marketplace
Registration requirements:
- Remote multichannel sellers: Once you cross the economic nexus threshold, you must register with the Florida Department of Revenue (DOR) and collect Florida sales tax on sales not taxed by a marketplace facilitator.
- Remote marketplace sellers: You don't need to register with the DOR if you sell only through one or two marketplaces. Contact the DOR for more information.
- In-state multichannel sellers: You must register and collect Florida sales tax on sales not taxed by a marketplace facilitator.
- In-state marketplace sellers: You may need to register; contact the DOR for more information.
- Learn more here.
You'll find more state profiles in our overview of all US states. Which state is right for your company? Our guide Which US state is best? answers that. Everything about forming a company in the Sunshine State is on our Florida page. And our sister site zerotax.llc shows you how to run a US LLC without a US permanent establishment completely tax-free.
Our services for Florida:
We form your LLC, corporation or limited partnership in Florida. All options and fees are under Company formation in Florida, and we're happy to answer any open questions in a consultation.