Florida Sales Tax Exemptions


The state of Florida levies a 6% state sales tax rate on the retail sale, lease or rental of most goods. Counties impose their own additional surtaxes. The range of sales tax rates charged within the state of Florida is between 6% and 7.5%. Florida’s county surtax rates are capped on purchases over $5,000, which is different from other states. For example, if you purchased a motor vehicle with the purchase price of $20,000 in a county with a 1% surtax rate, 7% tax would be due on the first $5,000 of the purchase price and 6% tax would be due on the remaining $15,000 of the purchase price.


Use tax is due on all purchases brought into the state of Florida, unless specifically exempted. Use tax is due at the same rates as sales tax. Returns are to be filed on or before the 20th day of the month following the month in which the purchases were made. For example, purchases made in the month of July should be reported to the state of Florida on or before August 20th.


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What is Exempt From Sales Tax in Florida?

what is exempt from healthcare sales tax in florida? Healthcare sales and use tax exemptions in Florida

Florida Sales Tax Exemptions for Healthcare

Florida sales tax law divides hospitals in to two distinct categories. Facilities that are registered as 501(c)(3) nonprofit, educational or charitable entities are free to purchase materials, supplies and most services without paying Florida sales tax. In order to qualify for this Florida sales tax exemption, a DR-5 Application for a Consumer’s Certificate of Exemption must be filed with the Florida Department of Revenue. If the entity meets the requirements, the Florida Department of Revenue will issue a DR-14 Consumer’s Certificate of Exemption which can be distributed to vendors and suppliers in lieu of paying Florida sales tax. For Florida for profit hospitals, a number of items may be purchased tax free based upon the characteristics or use of the item in question. For example, major categories of tax exempt items for Florida for profit hospitals include: hypodermic needles & syringes, medical gases and prescription drugs, chemical compounds and test kits, prosthetic and orthopedic appliances used to replace, substitute or alleviate the malfunction of any body part, items temporarily or permanently incorporated into a patient, and prescription-required single-use medical products.


The most challenging Florida sales tax exemption for hospitals to administer is the prescription-required single-use medical products exemption because the exemption is driven off of information not always readily available to the purchaser at the time the order is submitted. For more information about this Florida sales tax exemption, please see the Research Bulletin written by our sales tax consultants about Florida’s Prescription-Required Single-Use Medical Products Exemption.

Florida Sales Tax Exemptions for Manufacturing

Florida offers generous exemptions to manufacturers. New machinery and equipment are not subject to Florida sales tax. Repair parts and labor to that machinery and equipment are also exempt. Utilities including electricity and natural gas consumed in production are exempt from Florida sales tax. Utility usage may be apportioned based upon taxable and non-taxable usage. Material handling equipment including forklift and cranes may qualify for an exemption if they’re used in the production process. Similar to utility usage, charges for the material handling equipment may be apportioned. Labor is exempt from Florida sales tax provided that no tangible personal property is transferred during the transaction. While the sales tax exemptions offered by Florida are many, gathering supporting documentation is often the challenge particularly when usage must be apportioned. Agile Consulting Group’s sales tax consultants have worked hundreds of sales tax audits for Florida manufacturers and are able to leverage that experience to maximize potential sales tax savings for our clients.

what is exempt from manufacturing sales tax in florida?
what is exempt from software sales tax in Florida? software sales tax exemptions

Florida Sales Tax Exemptions for Software

Florida provides a sales tax exemption for software that is either custom or electronically transferred. Florida’s definition of what qualifies as custom software is broader than many other states because it considers a software program to be exempt if a salesperson or technician surveys a buyer’s needs and makes recommendations. Electronically transferred or web-based software is not considered to be tangible personal property by the Florida Department of Revenue and is therefore not subject to Florida sales and use tax. The challenge with claiming either of these Florida sales tax exemptions for software relates to having documentation to support the purchase being tax exempt. Agile Consulting Group’s sales tax consultants know from experience the type of documentation that the Florida Department of Revenue finds compelling evidence supporting an exemption for software purchases.


Maximize Your Sales Tax Savings with Agile Consulting Group

For more information on Florida sales tax exemptions please visit the sites below.

Sales Tax Compliance FAQs

Sales tax compliance can be intimidating, but it doesn't have to be!

  • Do I have to charge sales tax?

    You do if your business is considered to be "doing business" within a state. The Supreme Court ruling in SD v. Wayfair on June 21, 2018 changed the standard by which this was determined. Now, if your business has a sufficient volume or revenues or transactions within a state, you have established nexus within that state. Nexus means you have to charge sales tax to your customers within that state.

  • How do we know if we have sales tax nexus in a state?

    Agile will complete a sales tax nexus study to determine in which states you have met or exceeded the nexus thresholds. All we need are your: a) physical locations, and; b) prior years sales records to analyze both revenues and transaction counts per state.

  • How do I know what sales tax rate to charge?

    Don't try to reinvent the wheel. There are a number of excellent sales tax rate software solutions in the marketplace and we are partners with ALL of them. Ask us for our input on which would be the best choice for your business and we'll gladly guide you and provide an introduction to one (or several options) available in the marketplace.

  • Are my products or services subject to sales tax?

    Well, the answer like most everything is sales tax is, "it depends," because each state drafts its own laws and they vary widely from state-to-state. A sales tax consulting firm, such as Agile, should perform a taxability study on the products and services your business sells in any states where you have nexus to determine whether you should be collecting sales tax on your sales of those products or services.

  • Which sales tax software is best for my business?

    There are a number of excellent choices in the sales tax software space. We are a sales tax consulting partner with ALL the available options in the marketplace. Leverage our years worth of firsthand experience with these options to help guide you to the best choice for your business.

  • How do I register for sales tax with a state?

    Agile can do this for you. Most states require the same information to process a registration. Things like: legal entity name, FEIN #, date of incorporation, etc. All states require the names, date-of-birth and social security numbers of officers. Some states will even require a copy of an officer's driver's license.

  • Should we register or file a voluntary disclosure agreement ("VDA")?

    Completing a registration will allow your business to begin collecting taxes going forward. If you have taxes from prior periods to disclose, a VDA will enable you to do so with the added benefit of the penalties being waived.

  • How do states determine your filing frequency?


    Your assigned filing frequency depends on the volume of transactions you have within a state. Many states will ask about your expected volume of sales during the registration (or VDA) process. Some other states will initially default your account to monthly filings. All states will re-evaluate your filing frequency on an annual basis.

  • Will Agile handle any notices and communications received from the state(s)?

    Yes! We will absolutely handle all notices and communications you receive from the state(s) regarding sales and use tax. We provide a comprehensive, turnkey solution to outsource your sales and use tax issues.

  • How do I determine my taxable sales?

    Determining taxable sales is the first, and most important step in determining your monthly sales tax filing obligations. Sales tax software, if properly configured, can solve or at least simplify this process. Combine that with an accurate matrix classifying your products or services taxability, and this becomes a cinch! 

Florida Sales Tax Compliance Details

Here is useful Florida sales tax compliance information our Agile team members felt could be helpful:

Tax Rates & Collection Allowance

  • State-level sales tax rate: 6%
  • Commercial rentals taxed at 5.5%
  • Amusement machines taxed at 4%
  • Electricity taxed at 6.95%


  • Timely filers receive a collection allowance of 2.5% of sales tax liability, capped at $30.

Estimated Tax Payments

  • Taxpayers paying $200,000 or more in sales tax liability over the previous year must pay estimated tax.
  • Three ways to calculate estimated tax: 60% of same month's liability, 60% of monthly average liability, or 60% of sales tax due for next month's return.

Discretionary Sales Surtax

  • Unique version of local county taxes in Florida.
  • Five rate variations ranging from 0.5% to 2.5% depending on the county.
  • Transactions over $5,000 subject to state and discretionary sales surtax up to $5,000, with remaining taxed at the state rate of 6%.

Filing Frequencies

  • Four filing frequencies: monthly, quarterly, semi-annually, and annually.
  • Deadline for filing tax returns is the 19th of each month.
  • Payments must be made before 5 pm EST on the due date.

How to Calculate Florida Sales Tax?

Utilize the following sales tax formula to obtain the necessary sales tax:


Sales tax = total amount of sale x sales tax rate



If you are looking for more information, check out our Sales Tax Consulting page or talk to one of our Experts:

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