Florida imposes a 6% state sales tax on most retail sales of tangible personal property. Counties add their own discretionary surtax on top of that, ranging from 0.5% to 1.5% depending on location. In Palm Beach County, the combined rate is 7%. Broward and Miami-Dade also have their own rates, so South Florida businesses selling across county lines need to track where each sale occurs.

If your business sells tangible goods at retail, you almost certainly need to collect sales tax. This includes retailers, restaurants, bars, and businesses selling physical products to consumers. The tax applies at the point of sale, meaning you collect it from your customer and hold it in trust for the state.

Certain services are also taxable in Florida. These include commercial cleaning, pest control, security services, and detective services. Most professional services like legal, accounting, and consulting work are exempt. If you’re unsure whether your specific service is taxable, the Florida Department of Revenue publishes detailed guidance by industry.

Wholesale sales to other businesses for resale are generally exempt, but you need a valid resale certificate from your customer to document the exemption. Without that certificate on file, you’re responsible for the tax if the state audits your records.

To collect sales tax legally, you must register with the Florida Department of Revenue and obtain a sales tax certificate. Registration is free and can be done online. Once registered, you’ll receive a filing frequency based on your expected tax liability. Most small businesses file monthly or quarterly.

The surtax adds complexity for businesses operating across multiple counties. The surtax applies based on where the product is delivered, not where your business is located. A Boca Raton fractional CFO can help you set up systems to track the correct rate for each transaction, especially if you’re shipping to customers throughout South Florida.

Filing deadlines are strict. Returns are due on the 1st of the month following the reporting period and become late after the 20th. Late filings trigger penalties and interest that compound quickly. Even if you owe nothing for a period, you still need to file a zero return.

Sales tax compliance gets complicated when you’re managing multiple jurisdictions, exemption certificates, and varying tax rates. Getting it wrong means paying out of pocket for tax you should have collected or dealing with Department of Revenue audits that disrupt your operations. Most businesses find it worthwhile to have someone who understands the rules handle the filings rather than risking errors.