Florida’s corporate income tax rate is 5.5% on net income. This applies to C-corporations doing business in Florida or earning income from Florida sources. The first $50,000 of net income is exempt, meaning a C-corp with $100,000 in taxable income only pays tax on $50,000.

Here’s what trips up many business owners: most Florida businesses don’t pay corporate income tax at all. If your business is structured as an S-corporation, LLC, partnership, or sole proprietorship, you’re operating as a pass-through entity. The business income flows through to your personal tax return and gets taxed at federal individual rates. Florida has no personal income tax, so there’s no state-level tax on that pass-through income.

C-corporations are the exception. They pay tax at the entity level in Florida, and shareholders pay again when profits are distributed as dividends. This double taxation is why most small and mid-sized businesses avoid C-corp status unless there’s a specific reason for it, such as venture capital requirements or certain fringe benefit strategies.

For C-corps that do owe Florida corporate tax, the return is due on the first day of the fifth month after your fiscal year ends. Calendar year filers have a May 1 deadline. Extensions are available but don’t extend the payment deadline, only the filing deadline. Late payments trigger interest and penalties that add up quickly.

The 5.5% rate has been stable for several years after fluctuating in the past. Florida temporarily lowered it to 4.458% for certain tax years but brought it back to 5.5%. When planning for business tax returns, you should use the current rate unless legislation changes it again.

Compared to other states, Florida’s corporate rate is moderate. Some states charge over 9%, while a handful have no corporate income tax at all. Combined with no personal income tax, Florida remains attractive for business formation and relocation. A Boca Raton fractional CFO can help you evaluate whether your current entity structure makes sense given Florida’s tax landscape and your specific business situation.

If you’re unsure whether your business owes Florida corporate tax, check your entity type on your formation documents. LLCs that elected to be taxed as C-corps are subject to the tax. LLCs taxed as partnerships or S-corps are not.