Moving to Florida is exciting- no snow, no state income tax, and a business-friendly environment. But while Florida is known as a “low-tax” state, new residents still have important tax responsibilities they must understand to avoid penalties and compliance issues.
At Zenith Tax & Accounting LLC, we help new Florida residents navigate state and local tax rules with confidence. Here’s what you need to know.
Tax Requirements for New Residents in Florida
1. Florida Has No State Income Tax (But That’s Not the Whole Story)
Florida does not tax:
- Wages or salaries
- Retirement income
- Social Security benefits
- Investment income
This is a major benefit for individuals and retirees. However, federal income tax still applies, and other Florida taxes may impact you depending on your situation.
2. Establishing Florida Residency for Tax Purposes
To officially be considered a Florida resident, you should:
- Update your driver’s license
- Register to vote in Florida
- File a Declaration of Domicile
- Change your mailing address
- Register vehicles in Florida
These steps are critical if you moved from a state with income tax, as they help prevent residency disputes.
3. Sales Tax in Florida: What New Residents Should Expect
Florida has a 6% state sales tax, with additional local surtaxes depending on the county.
Sales tax applies to:
- Retail purchases
- Certain services
- Online purchases delivered to Florida
Some necessities are exempt, but understanding what’s taxable helps you plan expenses accurately.
4. Property Taxes: Important for New Homeowners
If you buy property in Florida:
- You may qualify for the Homestead Exemption
- Property taxes vary by county
- Filing deadlines matter
The Homestead Exemption can reduce the taxable value of your primary residence, leading to significant savings.
5. Business Taxes for New Florida Residents
If you start or move a business to Florida, you may be subject to:
- Corporate Income Tax (for C-corporations)
- Sales and Use Tax
- Reemployment (Unemployment) Tax
Florida is business-friendly, but proper registration and compliance are essential from day one.
6. Federal Tax Considerations Still Apply
Even though Florida has no state income tax:
- Federal filing requirements remain
- Estimated taxes may still be required
- Multi-state tax issues can arise during your move year
Professional planning helps avoid surprises at tax time.
Why Work With Zenith Tax & Accounting LLC?
At Zenith Tax & Accounting LLC, we specialize in:
- New resident tax planning in Florida
- Florida residency transitions
- Individual and business tax compliance
- Multi-state tax strategies
We ensure your move to Florida is tax-smart, compliant, and stress-free.
Final Thoughts : Tax and Accounting Services in Florida
Florida offers major tax advantages, but new residents must understand sales tax, property tax, residency rules, and business obligations to fully benefit. Getting expert guidance early can save time, money, and headaches.
Contact Zenith Tax & Accounting LLC today to ensure your Florida tax setup is done right from the start.
Frequently Asked Questions (FAQs)
Do Florida residents pay state income tax?
No. Florida does not have a state income tax on wages, retirement income, Social Security, or investment income. However, federal income tax still applies.
How do I establish Florida residency for tax purposes?
You can establish residency by updating your driver’s license, registering to vote, filing a Declaration of Domicile, registering vehicles, and changing your mailing address.
What taxes should new Florida residents expect to pay?
New residents should plan for sales tax, property tax (if owning a home), business taxes (if applicable), and federal income tax.
What is Florida’s sales tax rate?
Florida’s state sales tax rate is 6%, with additional county surtaxes depending on your location.
Do new Florida residents need a tax professional?
While not required, working with a tax professional helps ensure proper residency setup, compliance, and avoids costly mistakes—especially during the year of your move.
