Florida Tax Advantages

Florida ranks among the best states for business and entrepreneurs because of its pro-business tax policies. Your business dollars go further given the state's limited corporate taxes and your employees benefit from 0% state personal income tax.

Florida Tax Advantages

  • NO corporate income tax on limited partnerships
  • NO corporate income tax on subchapter S-corporations
  • NO state personal income tax guaranteed by constitutional provision
  • NO corporate franchise tax on capital stock
  • NO state-level property tax assessed
  • NO property tax on business inventories
  • NO property tax on goods-in-transit for up to 180 days
  • NO sales and use tax on goods manufactured or produced in Florida for export outside the state
  • NO sales tax on purchases of raw materials incorporated in a final product for resale, including non-reusable containers or packaging
  • NO sales/use tax on co-generation of electricity

Florida Sales and Use Tax Exemptions

  • Machinery and equipment used by a new or expanding Florida business to manufacture, produce or process tangible personal property for sale
  • Labor, parts and materials used in the repair of and incorporated into machinery and equipment
  • Electricity used in the manufacturing process
  • Certain boiler fuels (including natural gas) used in the manufacturing process
  • Semiconductor, defense and space technology-based industry transactions involving manufacturing equipment
  • Machinery and equipment used predominantly in research and development
  • Labor component of research and development expenditures
  • Commercial space activity — launch vehicles, payloads and fuel, machinery and equipment for production of items used exclusively at Spaceport Florida
  • Aircraft parts, modification, maintenance and repair, sale or lease of qualified aircraft
  • Production of motion pictures, made for television motion pictures, television series, commercial music videos or sound recordings.

Tax Comparison

Florida has one of the lowest tax structures, with low corporate taxes and no state personal income tax. Your dollar goes farther in Northwest Florida, in both your corporate and personal finances.

  Corporate Income Tax Individual Income Tax Sales Tax
Florida 5.50% 0.00% 6.00%
Alabama 6.50% 5.00% 4.00%
Georgia 5.75% 5.00% 4.00%
Mississippi 5.50% 5.00% 7.00%
Louisiana  7.50% 4.25% 4.45%



Florida’s Great Northwest is here to provide you the practical, on-the-ground resources and support you need for your business location/expansion project. From incentives to site selection to workforce development, we’ve got the expertise and connections to help your business be even more competitive with a Northwest Florida location.

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