Sales tax is a consumption-based tax imposed on the sale of goods and certain services. In most cases, the seller collects the tax at the point of sale, and the buyer bears the cost. The collected tax is then remitted to the appropriate state or local tax authority, typically on a monthly or quarterly basis.

Tax rates and what is considered taxable vary from state and locality, so understanding Florida’s specific rules is important for both business owners and residents. Below is a simplified overview of how sales tax works in Florida.

Florida’s Sales Tax Rate

The general state sales tax rate in Florida is 6%. Many counties add  a discretionary sales surtax ranging from 0.5% to 1.5%, bringing the total rate in some areas as high as 7.5%. For example, in Pasco County, the combined rate is 7% (6% state + 1% local surtax).

The discretionary sales surtax generally applies only to the first $5,000 of the sale amount of a single taxable item; excluding commercial rents which are fully subject to the surtax regardless of amount.

County	State Rate	Local Surtax	Total Sales Tax	Notes
Pasco	6.00%	1.00%	7.0%	Pasco County imposes a 1% local option sales tax, known as the “Penny for Pasco.” This surtax applies to the first $5,000 of any single taxable item.
Hillsborough	6.00%	0.50% — 1.50% (Effect. May 31, 2025)	6.50% — 7.50% (Effect. May 31, 2025)	As of January 1, 2025, some of Hillsborough local surtaxes were temporarily suspected. This suspension expires May 31, 2025 (floridarevenue.com)
Pinellas	6.00%	1.00%	7.00%	Pinellas County applies a 1% local option sales tax.
Hernando	6.00%	0.50%	6.50%	Hernando County imposes a 0.5% school capital outlay surtax.

Source: Current Discretionary Sales Surtax [June 1 – December 31, 2025]

---

Businesses must apply the correct local surtax based on where the sale is made or where the product is delivered. For example, if a business operated in both Hillsborough County and Pasco County, the rate applied will depend on which county the purchase was made in. A customer picking up an item in Hillsborough would be charged Hillsborough’s 0.50% surtax rate; while one purchasing in Pasco would pay Pasco’s 1% rate.

For online and remote sales, Florida follows destination-based sourcing. Sales tax and any local surtax is determined by the buyer’s location, not the sellers.

What Goods are Taxable in Florida?

Florida generally taxes the sale of tangible personal property, which is defined as personal property that can be seen, weighed, measured, or touched. This includes property that is in any way perceptible to the senses, including electric power or energy. Some examples include:

• Physical Goods (furniture, clothing, books, etc.)
• Prepared Foods (restaurants)
• Electronics & Office Equipment (computers, copiers, etc.)

Exemptions include most groceries, prescription medications and medical devices. Click here to read more about what is considered taxable.

What Services are Taxable in Florida?

Unlike the sale of goods, most services in Florida are not taxed. However, there are important exceptions where sales tax applies.

Taxable Services

• Nonresidential Cleaning Services – Cleaning for commercial or industrial properties
• Labor on Property – Repairs or installations involving electrical, plumbing, HVAC, etc.
• Pest Control (Nonresidential) – Pest services for commercial buildings
• Protection Services – Security guards, monitoring services and detective work
• Communications Services – Includes phone, cable and streaming
• Admissions and Amusement Services – Admission to events, shows or entertainment venues
• Service Warranties – Contracts that cover future repairs or maintenance services

Commonly Exempt Services

• Professional Services – Legal, accounting, medical and similar licensed professions
• Residential Cleaning & Pest Control – Only commercial services are taxable
• Personal Services – Haircuts, massages, personal training, pet grooming, etc.
• Educational Services – Tutoring, test prep and other learning-based services

“Drop of Oil” Rule

In Florida, when a taxable item and a non-taxable service are sold together as part of a single transaction, the entire charge becomes subject to sales tax. This is referred to as a mixed transaction. For example, if a mechanic inspects your vehicle and checks the oil level, the inspection alone is a non-taxable service. However, if the mechanic adds even a drop of oil, the sale now includes tangible personal property, making the entire invoice taxable. This principle is known as the “drop of oil” rule.

Commercial Rentals

Florida stands out at the only state in the US that imposes sales tax on commercial rent or leases; including office, retail and warehouse spaces. The sales tax on commercial rent is calculated on the total rent charged. In addition to a state sales tax rate of 2.0%, the local discretionary sales surtax is applied in full (without the $5,000 cap that typically applies to other taxable sales.)

Use Tax

Use Tax is a companion to sales tax, applied to taxable goods or services that were purchased without paying Florida sales tax. This can often happen with out-of-state or online purchases from sellers who are not registered to collect Florida sales tax. In these situations, the buyer is responsible for reporting and paying use tax directly to the Florida Department of Revenue.

Use tax is generally due if all of the following apply:

• The purchased item or service would be considered taxable
• Florida sales tax was not collected at the time of purchase
• The item was brought into Florida for use, consumption or storage

For example, if a Florida business purchases $2,000 worth of office equipment from an out-of-state vendor and no tax is shown on the invoice, that business is responsible for paying the sales tax to the Florida Department of Revenue.

Sales tax in Florida depends on what you’re buying, where you’re buying it, and whether it’s taxable. The state has a straightforward system with a flat rate, selective service taxation, and clear exemptions. However, businesses should stay updated as local surtaxes can also vary and may change annually. For specific situations or further clarification, it’s advisable to consult the Florida Department of Revenue or a tax professional.