Florida: Sunshine State

After Hawaii, Florida is the southernmost of all US states. It consists of the Florida Peninsula and the mainland Florida Panhandle. Together these areas cover an area of ​​170.00 km². The south and west coasts are each surrounded by the Gulf of Mexico. To the north, Florida borders Georgia and Alabama. With over 20 million inhabitants, the “Sunshine State” is the third most populous in the USA.

One of the most international states in the US, Florida boasts a fast-growing consumer market, a favorable business environment and a diverse, highly skilled workforce. According to ehuacom, the “Sunshine State” is therefore not only a popular destination for millions of tourists every year, but also for companies. Florida is the hub for international business, trade and investment.

Florida Location Map

DYNAMIC MARKET & BUSINESS FRIENDLY CLIMATE IN THE SUNSHINE STATE

Florida’s economy would occupy one of the top 20 places in a global comparison, putting it ahead of nations such as the Netherlands or Turkey, for example. Its economy is one of the fastest growing in the United States. Low tax rates, political and monetary stability, favorable business policies and competitive business and living costs explain Florida’s attractiveness for companies. Its huge market offers tremendous opportunities for all types of businesses.

The following performance also makes it clear that the Florida location offers great potential for a wide variety of industries. The state occupies the top positions nationally in terms of revenue in the areas of manufacturing, finance, information technology, aerospace, but also in logistics and transport.

The Sunshine State has become home to many offices of international companies. Whether corporate headquarters, manufacturing facility or sales and marketing offices, the advantage of easy access to global markets speaks for Florida.

  • COUNTRYAAH: offers list of all counties in the state of Florida. Also includes cities and towns within each county.

STATE-OF-THE-ART INFRASTRUCTURE OPENS THE DOOR TO LATIN AMERICA

With its strategic geographic location and advanced infrastructure, Florida enables efficient and effective transportation throughout the world. Commercial airports can be found in abundance, as well as deep-sea ports or a well-developed network of motorways and railways. The total value of exported goods and services exceeds $100 billion annually.

In addition to excellent infrastructure, access to finance and an often multicultural and multilingual workforce are key factors in Florida being the main gateway to the Latin American and Caribbean markets. This applies to both local and international companies. The Sunshine State accounts for a third of all US trade in this region. The concentration of financial service providers specializing in Latin America in Florida is unparalleled anywhere in the world.

LARGE TALENT POOL & CULTURE OF INNOVATION

In addition to their strong work ethic, the more than ten million workers in the “Sunshine State” also bring high (technical) qualifications and linguistic and cultural diversity to the table. They are one of the driving forces behind Florida’s economic strength.

They are trained in academic institutions that deserve the title of outstanding in a global comparison. Modern scientific and technical learning plans as well as cooperation between universities and companies ensure first-class training programs that are completely tailored to the wishes and needs of future employers. As a result, there are enough qualified workers on the market and the labor costs in Florida are very competitive compared to other very good locations.

The development and use of innovative technologies are firmly anchored in Florida’s history. The state is both home to America’s space program and the birthplace of the first IBM personal computer. Today there are more than 36,000 high-tech companies that provide jobs for approximately 600,000 residents of the state and generate export sales of more than twelve billion dollars annually. Even away from the high-tech industry, Florida shows itself from the most modern side. Research in marine biology, space exploration or the development of propulsion systems have their place, as does research in the field of health.

Floridians develop groundbreaking solutions that ensure an exciting and promising tomorrow.

FLORIDA INCOME TAX

Florida does not levy an income tax. However, there are federal income taxes to be paid.

CORPORATE INCOME TAX IN FLORIDA

Florida charges a 4.5% corporate income tax. In addition, federal corporation tax is payable.

FLORIDA SALES TAX

There is no sales tax or Value Added Tax (VAT) in the USA based on the European model. Instead, in the United States, states, counties, and municipalities levy a local sales tax on the sale of products (but not services).

Sales tax rate in Florida

The sales tax in Florida is 6% at the state level. Municipalities or districts charge an average of 1.05% sales tax. Combined, an average of 7.05% is due.

Florida Nexus Laws & Sales Tax

Learn more about the Economic Nexus Laws in the context of Sales Tax here.

Effective Date

July 1, 2021

Transactions included:

Taxable sales of tangible personal property physically delivered to the US state. Taxable services are not included in the threshold.

Treatment of tax-exempt transactions:

Exempt Sales and Exempt Services are not included in the threshold

Reason:

Sales volume only

Sales/Transactions Threshold:

– $100,000

Evaluation period:

The threshold applies to the previous calendar year

Extra information:

  • Registration Requirements: Florida did not specify how quickly a remote business must register once it crosses the Economic Nexus Threshold. This could already happen with the next transaction.
  • Florida SB 50

Florida Marketplace Sellers & Sales Tax

Learn more about Marketplace seller registration requirements

Effective date by the marketplace broker:

July 1, 2021

Economic Nexus Threshold:

A marketplace agent that has a physical presence in Florida or makes or facilitates more than $100,000 in taxable sales of tangible personal property in Florida in the prior calendar year must collect and report sales tax on behalf of marketplace sellers. When calculating the threshold:

  • Marketplace intermediaries include direct and third-party sales in their thresholds
  • Remote sellers should exclude sales made through a marketplace

Registration requirements:

  • Remote Multichannel Sellers: You must register with the Florida Department of Revenue (DOR) and collect Florida sales tax on sales that are not taxed by a Marketplace Agent once you have crossed the Economic Nexus Threshold.
  • Remote Marketplace Sellers: You do not need to register with the DOR if you only sell through one or two bulk marketplaces. Contact the DOR for more information.
  • In-State Multichannel Sellers: You must register and collect your Florida sales tax on sales that are not taxed through a marketplace intermediary.
  • In-State Marketplace Vendors: You may need to register; Contact the DOR for more information.