What are the sales tax rules for Florida businesses?

Florida charges a 6% state sales tax on most sales of tangible personal property and certain services. On top of that, most counties add a discretionary sales surtax. In Hillsborough County, where Riverview and much of the Tampa Bay area fall, the combined rate is 7.5%. The county surtax only applies to the first $5,000 of a single transaction, so large purchases above that amount are taxed at the state-only rate on the excess.

You need to register with the Florida Department of Revenue before you start collecting sales tax. Registration is free and can be done online. Once registered, you’ll receive a Certificate of Registration and your filing frequency based on expected sales volume. Most small businesses file monthly or quarterly. Returns are due on the 1st of the month following the reporting period, and they’re late after the 20th.

Not everything is taxable, which surprises a lot of business owners. Groceries (unprepared food) are generally exempt. Most services are exempt too. Florida is actually more favorable than many states when it comes to service-based businesses. However, there are notable exceptions. Commercial cleaning, pest control, nonresidential repairs involving parts, and security services are among the services that do require sales tax collection. If your business falls into one of these categories, you need to be charging and remitting sales tax.

Restaurants and food service businesses collect sales tax on all prepared food and beverages, whether dine-in or takeout. Catering is taxable. Food trucks collect at the same rate as sit-down restaurants.

Contractors deal with a different set of rules entirely. In Florida, contractors are generally treated as the end consumers of the materials they install. That means you pay sales tax when you buy materials, not when you bill the customer for the finished work. But if you sell materials separately without installing them, that becomes a taxable retail sale. The line between a “real property improvement” and a “repair” also matters for how sales tax applies. Getting this wrong can lead to back taxes and penalties during an audit.

Retail and e-commerce businesses collect sales tax on tangible goods sold in Florida. If you sell online and have nexus in the state through physical presence or by exceeding $100,000 in remote sales, you’re required to collect and remit. Marketplace facilitators like Amazon handle collection for sales through their platform, but sales through your own website are your responsibility.

Florida offers a small reward for filing on time. If you submit your return and payment by the due date, you can keep 2.5% of the first $1,200 of tax due as a collection allowance. It’s modest, but it adds up over the year.

Late filings carry a 10% penalty with a minimum of $50. Interest accrues on unpaid balances. If the state determines you collected tax and didn’t remit it, the consequences become much more serious and can include criminal charges. This is one area where missing deadlines is genuinely risky.

Keep your sales tax funds in a separate account from your operating cash. That money belongs to the state. You’re holding it temporarily. Mixing it into your general account makes it too easy to spend, and when the return is due, you’re scrambling. A dedicated savings account for sales tax and payroll taxes prevents that problem. Consistent small business bookkeeping practices make it much easier to stay on top of what you owe and when.

If you’re unsure whether your products or services are taxable in Florida, get clarity before the state comes asking. The Department of Revenue conducts audits and typically looks back three years. Having someone handle your sales tax management takes the guesswork out of rates, filing deadlines, and taxability questions so you can focus on running your business instead of interpreting tax rules.