Florida has one of the least tax burdened economies across the United States. The following avenues are the most prominent tax revenue generators across economies; let's see how these impact Florida's tax collection.
Zero Individual Income Tax System In Florida, there is no tax collection on Individual Income. This comes as a great relief to all employed and income earning individuals of Florida.
Corporate Income Tax The Corporate Income Tax system in Florida is presently set at the rate of 5.5%. This is on the lower side in comparison to other states in the U.S.
Sales Tax The Sales Tax rate in Florida is presently set at 6%. This rate to a large extent depends on the local municipal corporation and it's proposals.
Property Tax The State constitution levies and reserves all revenue collected from tax on property in Florida. The property tax is based on the market value of the property. This becomes applicable only if on assessment, there has been an increase in the market value for a given property and not otherwise.
You would be surprised that there are quite some items that Florida does not tax. These include cooked food preparations, apparels (most clothing), text books, medicinal drugs and certain other items.
Also, income earned through social security avenues as well as certain qualified retirement income or annuity is not liable for tax.
Despite a low tax burden structure, it may be possible that one is overburdened with unwanted or miscalculated taxes and you may need a Florida Tax Attorney to help resolve your tax issues.
Income Tax can be filed online as per the options offered by the Department of Revenue. You can do these via either of the following methods -
a.) TeleFile - you need to fill in the TeleFile worksheet that is available in the Fast File booklet. Once you have done the necessary, you need to call 1-888-472 3453. This is a 24/7 and free service.
b.) pa.direct.file - you can directly visit the site and report your income and file your return directly to the Department of Revenue. This too is a 24/7 and free service.
c.) Florida IRS e-file - this is an advanced system for tax filing. It is available with tax practitioners and consultants who use this software primarily because of the ease it extends in filing both federal and state income tax returns at one go. This is preferred by businesses.
While of course, one can file tax through paper, tax filing is best filed electronically as it eliminates or definitely limits human errors.
Also, a couple of year ago, Florida has introduced the Integrated Tax System (ITS) beginning with corporation / business taxes. This system, intends to integrate the filing for corporates under various sections and make it very tax payer friendly. Instant Tax Solutions is a specialized Tax Relief Service Provider Firm with a state wide presence; however is more renowned as an excellent Orlando tax attorney firm. Moreover, it aligns to these norms and revised enhancements introduced by the state.