Florida’s “no income tax” reputation gives a lot of business owners a false sense of security. The personal income tax benefit is real, but there are still several taxes you need to track and pay at the state, county, and federal level.

Sales and use tax is probably the biggest one. Florida charges 6% at the state level, and most counties add a discretionary surtax on top. In Duval County the total rate is 7.5%. If you sell taxable goods or certain services, you must collect sales tax from your customers and remit it to the Florida Department of Revenue. Filing frequency depends on your volume. It could be monthly, quarterly, or annually. Missing a filing triggers penalties immediately, and Florida does not play around with sales tax compliance.

Florida corporate income tax catches some people off guard. If your business is a C-corporation, you owe 5.5% on net income over $50,000. S-corporations, LLCs, and sole proprietorships are generally exempt because their income passes through to the owners’ personal federal returns. But if you’re structured as a C-corp, Florida absolutely taxes your business income.

Reemployment tax is Florida’s version of state unemployment insurance. If you have employees, you pay this on the first $7,000 of each employee’s annual wages. New employers typically start at 2.7%. Your rate adjusts over time based on your claims history, so it can go up or down.

Commercial rent tax is something unique to Florida. If you lease commercial space, there’s a state tax on your rent. The current rate is 2% plus any applicable county surtax. Your landlord usually collects this from you and remits it, but it still comes out of your pocket every month.

Tangible personal property tax applies to business equipment, furniture, computers, vehicles, and other physical assets. You file a return (DR-405) with the county property appraiser each year by April 1st. There’s a $25,000 exemption, so smaller businesses with limited equipment may not owe anything. But if your assets exceed that threshold, you’ll get a tax bill.

The local business tax receipt (formerly called an occupational license) is required by Jacksonville and Duval County. It’s a relatively small annual fee, but you need it to operate legally.

Then there are all the federal taxes that Florida’s no-income-tax status doesn’t touch at all. Federal income tax on your business profits, self-employment tax of 15.3% for sole proprietors and LLC members, payroll taxes if you have employees, and FUTA. These apply regardless of what state you’re in.

The real advantage of operating in Florida is that sole proprietors, LLC owners, partners, and S-corp shareholders don’t pay state tax on their business income. Compared to states like California or New York, that’s meaningful money. But between sales tax, reemployment tax, commercial rent tax, tangible property tax, and all your federal obligations, there’s still a lot to stay on top of. Having an outsourced bookkeeping team in Jacksonville that understands these requirements keeps you from missing filings or underestimating what you actually owe throughout the year.