Flat-Fee Tax Preparation for Florida Residents

Florida has no personal income tax, but the documentary stamp tax applies to real estate deeds (0.7% of purchase price, or $0.70 per $100) and to mortgages (0.35% per $100) — a significant cost on every FL real estate transaction

Florida's corporate income tax (5.5%) applies to C-corporations and certain other entities, but not S-corporations (whose income flows to shareholders and is taxed federally only)

FL snowbirds and part-year residents must carefully document their domicile — many states (especially NY and CA) will challenge a FL domicile claim if the taxpayer spends significant time in the original state

Foreign nationals investing in FL real estate face unique withholding requirements under FIRPTA (Foreign Investment in Real Property Tax Act) — 15% federal withholding on the gross sales price, which must be filed for recovery

Required Minimum Distributions (RMDs) from retirement accounts are fully taxable at the federal level — with no state income tax, FL retirees often have significant federal tax planning opportunities around Roth conversions and qualified charitable distributions

FL's intangible personal property tax was eliminated in 2007, but FL still imposes a documentary stamp tax on promissory notes ($0.35 per $100) — relevant for seller financing situations

Short-term rental operators in Florida owe state sales tax (6%) plus county tourism development tax on gross rental revenue — Airbnb and VRBO remit on behalf of hosts in some counties but not all

Homestead exemption in FL (up to $50,000 reduction in assessed value) provides significant property tax savings, but rental properties and second homes do not qualify

Florida Real Estate Tax

Florida is one of the most active real estate investment markets in the US, attracting domestic investors and foreign capital alike. The combination of no state income tax, strong population growth, and no state capital gains tax makes FL real estate investment highly attractive — but investors must navigate documentary stamp taxes, short-term rental sales taxes, and federal depreciation recapture on sale. Miami, Orlando, and Tampa real estate appreciation has created large embedded gains requiring strategic planning.

Florida Business Tax

Florida's business-friendly environment (no corporate income tax for S-corps and pass-throughs, no personal income tax) makes it attractive for business owners. However, multi-state businesses headquartered in FL still owe taxes in states where they have nexus. C-corporations doing business in FL owe the 5.5% Florida corporate income tax. The absence of state income tax means federal optimization — retirement contributions, deductions, and credits — is where the real planning value lies for FL business owners.

I moved from New York to Florida — do I still owe New York taxes?

If you fully changed your domicile to Florida, you are no longer a NY resident and owe NY tax only on NY-source income (income from NY employers, NY rental properties, etc.). However, NY will audit domicile changes by high-income earners aggressively. To protect your FL domicile, you should spend fewer than 183 days in NY, file FL homestead exemption, change your driver's license, voter registration, and primary bank accounts to FL, and document your ties to FL thoroughly.

Does Florida have a gift or estate tax?

No. Florida does not impose a state estate tax or gift tax. The federal estate tax (applying to estates over $13.61M per person in 2024) still applies, but FL offers no additional estate tax burden. This makes Florida an attractive state for high-net-worth individuals doing estate planning. Florida also has favorable asset protection laws, including the unlimited homestead exemption, which protects a primary residence from most creditors.

I rent my condo on Airbnb in Florida — what taxes do I owe?

Short-term rental income (rentals of less than 6 months) in Florida is subject to FL state sales tax (6%) plus county tourist development tax (typically 5–6%), for a combined rate of 11–12%. Airbnb collects and remits these taxes on behalf of hosts in some FL counties but not all — you should verify for your specific county. The rental income is also subject to federal income tax, and depreciation on the condo can offset a portion of that income.

How is real estate depreciation recapture taxed when I sell a FL rental property?

When you sell a FL rental property, you owe no state tax since FL has no income tax. Federally, depreciation recapture (Section 1250 unrecaptured gain) is taxed at a maximum 25% federal rate, and any remaining long-term gain is taxed at 0%, 15%, or 20% depending on your total income. The 3.8% Net Investment Income Tax also applies if your income exceeds thresholds. Proper depreciation tracking — including cost segregation for accelerated depreciation — determines exactly how much recapture you owe.