Florida Business Taxes: Corporate Income Tax, Reemployment Tax and More

Updated November 2, 2026 · By the TaxPro Florida team

Most Florida small businesses deal with four state and local tax areas: sales and use tax (if they sell taxable goods or services), reemployment tax (if they have employees), tangible personal property tax on business equipment, and local business tax receipts. C corporations, and LLCs that elect to be taxed as corporations, also owe Florida corporate income tax at 5.5% on Florida taxable income above a $50,000 exemption.

Florida business taxes at a glance

Florida corporate income tax

Who pays it

Florida corporate income tax applies to C corporations doing business or earning income in Florida, including out-of-state corporations with sufficient Florida connections, and LLCs classified as corporations for federal tax purposes. Generally exempt are:

• Sole proprietorships and individuals
• Partnerships and LLCs taxed as partnerships or disregarded entities (unless owned by a corporation, in which case the owner may have a filing obligation)
• S corporations, except where they owe federal tax at the entity level, such as on built-in gains or excess passive income

Rate and exemption

The rate is 5.5% of Florida net income. The first $50,000 of Florida net income is exempt; members of a controlled group share a single exemption. Florida starts with federal taxable income, then applies Florida additions, subtractions and apportionment for multistate businesses.

Filing

Corporations file Form F-1120 with Florida DOR. Due dates are tied to the end of your tax year and generally fall after the federal due date; DOR publishes the exact rules, including for fiscal-year filers and extensions. Corporations with significant expected tax may need to make estimated payments. A corporation that is subject to the tax generally must file even if no tax is due.

Reemployment tax (Florida unemployment tax)

Reemployment tax is Florida's name for state unemployment insurance tax. It funds benefits for eligible workers who lose their jobs. Key points:

• Employers pay it, not employees. It must not be withheld from workers' wages.
• Taxable wage base: The tax applies to the first $7,000 of wages paid to each employee per calendar year.
• Rates: New employers generally start at an initial rate of 2.7%. After a qualifying period, your rate is based on your experience, meaning how many former employees have collected benefits charged to your account.
• Who must register: Generally, employers who pay $1,500 or more in wages in a calendar quarter or employ at least one worker for some part of a day in 20 different weeks in a calendar year. Agricultural and household employers have different thresholds.
• Quarterly reports: Employers file the Employer's Quarterly Report (RT-6) and pay the tax, generally due by the last day of the month after each quarter.
• Federal unemployment tax (FUTA): You also owe federal unemployment tax; paying Florida reemployment tax on time generally earns you a credit against FUTA.

Misclassifying employees as independent contractors can lead to back reemployment taxes, penalties and interest, as well as federal problems. If you're unsure, look at the IRS and Florida guidance on worker classification or ask a professional.

Tangible personal property tax

Businesses that own furniture, fixtures, computers, machinery or equipment in Florida must generally file a tangible personal property return (Form DR-405) with the county property appraiser by April 1 each year. Florida provides an exemption of up to $25,000 of assessed value of tangible personal property. If your property is worth less than that, you may not need to file after the first year in some counties, but you must file an initial return to get the exemption. Late or missing returns can result in penalties and the loss of the exemption.

Local business tax receipts

Most counties and many cities require businesses to buy a local business tax receipt (formerly called an occupational license) each year. This applies even to many home-based businesses. Contact your county tax collector and city clerk; you may need both.

Annual reports and registration (Sunbiz)

Corporations, LLCs and limited partnerships registered with the Florida Division of Corporations must file an annual report between January 1 and May 1 each year at Sunbiz.org. This isn't a tax, but missing it is costly: a $400 late fee applies to most for-profit corporations and LLCs that file after May 1, and entities that don't file can be administratively dissolved. Watch out for official-looking mail from private companies offering to file your annual report or provide certificates for high fees; you can file directly with the state.

Other taxes some businesses face

• Documentary stamp tax on promissory notes and other written obligations to pay money, deeds and mortgages
• Tourist development and convention taxes for businesses renting accommodations short-term
• Communications services tax for telecom and video service providers
• Fuel, alcohol and tobacco taxes for businesses in those industries

A simple startup tax checklist

1. Choose your entity type with tax consequences in mind (sole proprietorship, LLC, S corporation or C corporation).
2. Register the entity with Sunbiz, if applicable, and get a federal EIN from the IRS.
3. Register with Florida DOR for sales tax and reemployment tax, if applicable.
4. Get local business tax receipts from your county and city.
5. Calendar due dates: sales tax returns, RT-6 quarterly reports, DR-405 by April 1, annual report by May 1, federal and Florida income tax returns.
6. Set up bookkeeping from day one, and consider a CPA or enrolled agent; see how to choose one.