No. Florida does not impose a personal state income tax. However, Florida residents may still be subject to federal income taxes administered by the IRS.

Why does this matter?
Living in Florida can provide a significant state income tax advantage compared with states that impose a personal income tax.

Yes. Florida’s lack of a state personal income tax does not eliminate federal income tax. Individuals generally must report taxable income to the IRS.

Federal taxes may apply to wages, self-employment income, investment income, business income and other taxable income.

Tampa is located in Hillsborough County. For applicable taxable transactions, the current combined state and local sales tax rate in Hillsborough County is 7.5%.

The rate consists of Florida’s state sales tax plus applicable Hillsborough County surtaxes.

Florida’s lack of a personal income tax does not mean there are no tax-planning opportunities.

Business structure, deductions, retirement contributions, estimated taxes, payroll taxes, self-employment taxes and federal tax rules can all affect your overall tax liability.

Yes. The taxes that apply depend on how the business is structured and how income is earned.

Depending on the business, taxes may include federal income tax, self-employment tax, employment taxes, estimated taxes and other applicable taxes.

Self-employment tax generally consists of Social Security and Medicare taxes for individuals who work for themselves.

Being self-employed does not mean you are exempt from Social Security and Medicare taxes.

You may need to make estimated federal tax payments if taxes are not sufficiently withheld from your income during the year.

This is particularly important for self-employed individuals, business owners, investors and others with income that does not have regular tax withholding.

Potentially. Qualifying business expenses may be deductible under federal tax rules when they meet the applicable requirements.

Proper bookkeeping and documentation are important to support business deductions.

Accurate bookkeeping helps business owners understand their financial position and provides organized records for tax preparation and planning.

Good records can also help identify deductible expenses, monitor cash flow and make better financial decisions.

Yes. Your business structure can significantly affect how income is reported and which taxes apply.

Sole proprietorships, partnerships, LLCs, S corporations and corporations can have different federal tax treatment.

No. Effective tax planning should generally take place throughout the year rather than only when a tax return is due.

Planning ahead can help identify opportunities, manage estimated payments and avoid unexpected tax liabilities.

Tax rules can be complex, particularly for business owners, investors and individuals with multiple sources of income.

A CPA can help you understand your tax obligations, organize financial information and develop tax-planning strategies appropriate to your situation.