Small business tax in Florida depends on how your business is set up. Florida has no personal income tax, so sole proprietors, partnerships, most LLCs and S corporations pay no state income tax on their profits. C corporations, and LLCs taxed as C corporations, pay Florida corporate income tax of 5.5% on income above $50,000. Most businesses also deal with sales tax, reemployment tax on wages, tangible personal property tax and federal taxes. At Nexus United Inc., our Delray Beach tax team helps Florida owners file each of these on time.
Florida is one of the most tax friendly states for small business, but “no income tax” does not mean “no taxes.” Missing a sales tax return or an annual report can cost more than the tax itself. This guide covers what you owe, when it is due and how to keep more of what you earn.
Florida Small Business Taxes by Business Structure
| Business type | Florida income tax | Federal income tax | Other common Florida taxes |
|---|---|---|---|
| Sole proprietorship | None | Owner pays on Form 1040, Schedule C, plus self employment tax | Sales tax, reemployment tax, property tax |
| Partnership | None | Partners pay on their own returns (Form 1065 and K-1) | Sales tax, reemployment tax, property tax |
| Single member or multi member LLC | None, unless taxed as a C corporation | Taxed like a sole proprietor or partnership by default | Sales tax, reemployment tax, property tax, annual report |
| S corporation | Generally none | Shareholders pay on their own returns (Form 1120-S and K-1) | Same as above, plus annual report |
| C corporation | 5.5% above $50,000 | 21% federal corporate rate (Form 1120) | Same as above, plus annual report |
Florida Corporate Income Tax
Florida taxes C corporations, and LLCs that elect to be taxed as corporations, at 5.5%. The first $50,000 of Florida taxable income is exempt. Corporations file Form F-1120, or the short Form F-1120A if they qualify. You can find forms and rules on the Florida Department of Revenue corporate income tax page.
The basic formula is:
Florida corporate income tax = (Florida taxable income – $50,000) x 5.5%
For example, a C corporation with $150,000 of Florida taxable income owes ($150,000 – $50,000) x 5.5% = $5,500. A corporation with $50,000 or less owes no Florida corporate income tax, but it may still need to file.
For a calendar year corporation, the F-1120 is generally due May 1. An extension on Form F-7004 gives more time to file, not more time to pay. If you expect to owe more than $2,500 for the year, you must make estimated tax payments on Form F-1120ES.
Florida Sales and Use Tax
Florida charges a 6% state sales tax on most retail sales of goods and some services. Most counties add a local discretionary surtax. Palm Beach County adds 1%, so most sales there are taxed at 7%.
What Florida business owners should know:
- Register with the Department of Revenue before you make taxable sales.
- Collect tax from customers and file returns monthly, quarterly or yearly, based on how much tax you collect.
- Returns and payments are due on the 1st and late after the 20th of the month after each period.
- Use tax applies to taxable items you buy from out of state sellers that did not charge Florida tax.
- Good news: Florida repealed its sales tax on commercial rent for rental periods starting on or after October 1, 2025. Businesses that lease office, retail or warehouse space no longer pay state sales tax on that rent.
Florida Reemployment Tax
If you have employees, you pay Florida reemployment tax, which is the state’s unemployment tax. It applies to the first $7,000 of wages paid to each employee each year. New employers usually start at a 2.7% rate, which equals up to $189 per employee per year. Your rate can go up or down after your first few years based on claims history.
Reemployment tax is paid by the employer only. You cannot withhold it from employee pay. Reports and payments are due quarterly.
Tangible Personal Property Tax
Florida counties tax business equipment, furniture, computers and other tangible property you use in your business. You file a tangible personal property return with your county property appraiser by April 1 each year. Each return gets a $25,000 exemption, so many small businesses with less equipment owe nothing. You still need to file the first return to claim the exemption.
Other Florida Business Taxes and Fees
- Annual report: LLCs pay $138.75 and corporations pay $150 to file with the Florida Division of Corporations (Sunbiz) between January 1 and May 1. Filing after May 1 adds a $400 late fee.
- Local business tax receipt: most cities and counties require this license to operate. Fees vary by location and business type.
- Documentary stamp tax: applies to deeds at $0.70 per $100 and to notes and loans at $0.35 per $100 in most counties.
- Industry taxes: some businesses also pay fuel, communications services or tourist development taxes.
Federal Taxes Florida Small Businesses Still Pay
No state income tax does not mean no income tax. Every Florida business still owes federal taxes.
- Federal income tax: owners of sole proprietorships, partnerships, LLCs and S corporations pay at their personal rates, from 10% to 37%. C corporations pay a flat 21%.
- Self employment tax: owners who work in their own business pay Social Security and Medicare tax on their profit.
- Payroll taxes: employers withhold income tax and FICA from wages, match the FICA and pay federal unemployment tax (FUTA).
Self employment tax uses this formula:
Self employment tax = Net business profit x 92.35% x 15.3%
On $60,000 of profit, that is $60,000 x 92.35% x 15.3% = about $8,477. You can deduct half of it on your Form 1040. Since no tax is withheld from business profit, most owners make quarterly estimated payments. Our guide on how to pay estimated quarterly taxes walks you through it.
Key Small Business Tax Deadlines for Florida (2026 Tax Year)
| Due date | What is due |
|---|---|
| Every month by the 20th | Florida sales tax return and payment (if filing monthly) |
| January 15, 2027 | Fourth quarter 2026 federal estimated tax |
| February 1, 2027 | Forms W-2 and 1099-NEC to workers and the IRS |
| March 15, 2027 | Federal partnership (Form 1065) and S corporation (Form 1120-S) returns |
| April 1, 2027 | Tangible personal property return to your county property appraiser |
| April 15, 2027 | Federal Form 1040 and C corporation Form 1120; first quarter 2027 estimated tax |
| April 30, 2027 | Florida reemployment tax report for the first quarter of 2027 |
| May 1, 2027 | Sunbiz annual report for LLCs and corporations |
| May 3, 2027 | Florida Form F-1120 for calendar year corporations (May 1 falls on a Saturday) |
To see every filing step in order, read our guide on how to file small business taxes in Florida.
Documents You Need to File Florida Small Business Taxes
- Federal return forms: Schedule C, Form 1065, Form 1120-S or Form 1120, plus K-1s
- Florida forms: F-1120 or F-1120A for corporations, sales tax returns (DR-15), reemployment tax reports (RT-6)
- Income records: bank statements, sales reports, invoices and Forms 1099-NEC, 1099-K and 1099-MISC
- Expense receipts, mileage logs and home office records
- Payroll records: Forms 941, 940, W-2 and W-3
- Asset lists and depreciation schedules for your tangible property return
- Prior year returns and IRS or Florida notices
Keep tax records for at least three years after you file, and longer for property, payroll and loss carryforwards.
How to Lower Your Small Business Tax in Florida
- Claim every deduction. Rent, software, vehicle use, insurance, supplies and professional fees all reduce taxable profit. See our list of tax deductions for small businesses.
- Use the qualified business income deduction. Many owners of pass through businesses can deduct up to 20% of their business income. The 2025 tax law made this deduction permanent.
- Consider an S corporation election. Once profit is high enough, paying yourself a reasonable salary and taking the rest as distributions can cut self employment tax.
- Write off equipment faster. Section 179 and 100% bonus depreciation, made permanent for most property bought after January 19, 2025, let you deduct equipment in the year you buy it.
- Open a retirement plan. A SEP IRA, SIMPLE IRA or solo 401(k) lowers taxable income and builds savings.
- File your tangible property return. It protects your $25,000 exemption.
- Avoid costly errors. Late sales tax returns, mixed personal and business accounts and missed 1099s add penalties. Learn the most common ones in our guide to tax mistakes small businesses make.
If you are opening a new company in Palm Beach County, our guide to starting a business in Delray Beach covers licenses and setup steps.
How Nexus United Inc. Can Help
Nexus United Inc. helps small businesses in Delray Beach, Boynton Beach, West Palm Beach and across Palm Beach County handle federal and Florida taxes. We prepare business and corporate returns, file sales and reemployment tax, run payroll, keep your books and file your Sunbiz annual report. Call (855) 639 8740 or contact our team to plan your 2026 taxes.
Frequently Asked Questions About Florida Small Business Tax
Does Florida have a small business income tax?
Florida has no personal income tax, so most small businesses that pass income to their owners pay no state income tax. Only C corporations and LLCs taxed as C corporations pay Florida corporate income tax.
What is the Florida corporate income tax rate?
The rate is 5.5% of Florida taxable income above the first $50,000. A corporation with $50,000 or less of Florida taxable income owes no corporate income tax.
Do LLCs pay taxes in Florida?
Most LLCs pay no Florida income tax because profits pass to the owners. LLCs still pay sales tax, reemployment tax and property tax when they apply, plus the $138.75 annual report fee.
What is the sales tax rate for businesses in Florida?
The state rate is 6%. Most counties add a local surtax. In Palm Beach County, the combined rate on most sales is 7%.
Do Florida businesses still pay sales tax on commercial rent?
No. Florida repealed the state sales tax on commercial rent for rental periods beginning on or after October 1, 2025.
What federal taxes does a Florida small business pay?
Federal income tax, self employment tax for owners, and payroll taxes for employers. C corporations pay a flat 21% federal corporate tax.
