Florida Corporation Taxes: What Your Business Needs to Pay
Find out what taxes a Florida corporation pays — including the 5.5% corporate income tax, sales tax, payroll taxes, and federal filing requirements for C Corps and S Corps.
Bizee Editorial Staff
Editorial Team
Florida tax snapshot
Filing fee: $35 (Articles of Incorporation)
Processing time: 3–5 business days (standard); expedited available
State agency: Florida Division of Corporations (sunbiz.org)
Annual report due: May 1 each year
State tax rate: 5.5% corporate income tax (C Corps only); no state income tax for S Corps or individuals
What taxes does a Florida corporation pay?
A Florida corporation pays several taxes depending on its structure. C Corps pay Florida's 5.5% corporate income tax on federal taxable income, plus federal corporate income tax, sales tax on taxable transactions, and payroll taxes if they have employees. S Corps skip the state corporate income tax — income passes through to shareholders, who pay federal individual income tax instead.
Florida corporate income tax: 5.5% (C Corps only)
Florida sales and use tax: 6% state rate, plus local surtaxes
Federal corporate income tax: C Corps file Form 1120; S Corps file Form 1120-S
Payroll taxes: federal withholding, FICA, FUTA, and Florida reemployment tax if you have employees
No Florida state income tax on individuals — a meaningful advantage for S Corp shareholders
Florida corporate income tax
Florida imposes a 5.5% corporate income tax on C Corps doing business in the state. The tax is calculated on federal taxable income with Florida-specific adjustments — so your federal return is the starting point, not a separate calculation. S Corps are exempt from this tax at the entity level.
C Corps file Florida Form F-1120 with the Florida Department of Revenue. The due date mirrors the federal deadline: the 15th day of the 4th month after the close of your tax year — April 15 for calendar-year filers. If you need more time, you can request an extension, but any tax owed is still due by the original deadline.
Florida also requires C Corps to pay estimated corporate income tax quarterly if their annual tax liability exceeds $2,500. Missing estimated payments can result in underpayment penalties, so it's worth building those into your cash flow calendar from the start.
Florida sales and use tax
Florida's state sales tax rate is 6%, and most counties add a local discretionary surtax on top of that. If your corporation sells taxable goods or certain services in Florida, you're responsible for collecting and remitting sales tax to the Florida Department of Revenue.
Use tax applies when your corporation buys taxable items out of state and brings them into Florida without paying sales tax at the point of purchase. The rate is the same as sales tax. Businesses that buy equipment, supplies, or inventory from out-of-state vendors often overlook use tax — it's one of the more common gaps in Florida corporate tax compliance.
Federal income tax: C Corp vs. S Corp
How your corporation is taxed at the federal level depends on whether it's a C Corp or an S Corp — and the difference is significant.
C Corp: Files Form 1120 with the IRS and pays federal corporate income tax on net income. Dividends paid to shareholders are taxed again at the individual level — this is the double taxation that S Corp status is designed to avoid. Form 1120 is due April 15 for calendar-year filers.
S Corp: Files Form 1120-S with the IRS. Income and losses pass through to shareholders, who report them on their personal returns. The corporation itself pays no federal income tax. Shareholders who work in the business must pay themselves a reasonable salary as W-2 employees.
C Corps can request a 6-month extension using Form 7004, but any tax owed is still due by the original deadline. A tax professional can help you figure out which structure makes more sense for your situation — the right answer depends on your income level, how you plan to distribute profits, and your long-term plans for the business.
Payroll and employer taxes
If your Florida corporation has employees — including S Corp shareholders who work in the business — you're responsible for payroll taxes at both the federal and state level. These aren't optional, and getting them wrong can mean back taxes, penalties, and interest.
Federal income tax withholding: withheld from employee wages and remitted to the IRS using Form 941 (quarterly).
FICA taxes: you withhold 6.2% Social Security and 1.45% Medicare from employee wages, and match those amounts as the employer.
FUTA: federal unemployment tax filed annually on Form 940. The standard rate is 6% on the first $7,000 of each employee's wages, though most employers qualify for a credit that reduces it to 0.6%.
Florida reemployment tax: Florida's version of state unemployment insurance. New employers are assigned a standard rate until they build enough payroll history for an experience-rated classification. Register with the Florida Department of Economic Opportunity before your first payroll.
Florida has no state income tax withholding requirement — that's one less form to file compared to most states. But federal payroll obligations still apply in full. A payroll service or accountant can help you stay on schedule with deposits and filings.
Other taxes and duties
Depending on your industry and business activities, your Florida corporation may have additional tax obligations beyond the ones above.
Excise taxes: if your corporation sells fuel, alcohol, tobacco, or certain other regulated products, federal excise taxes apply. The IRS has a full list of excise tax categories.
Documentary stamp tax: Florida imposes this tax on certain documents, including promissory notes and deeds. It comes up most often in real estate transactions.
Industry-specific licenses and fees: some industries — healthcare, construction, financial services — carry their own licensing fees and regulatory costs at the state level. Check with the Florida Department of Business and Professional Regulation if your business operates in a licensed field.
If you're unsure whether any of these apply to your business, a tax professional familiar with Florida can help you figure out what's relevant for your specific situation.
Frequently asked questions about Florida corporation taxes
5.5%. Florida imposes a 5.5% corporate income tax on C Corps doing business in the state, calculated on federal taxable income with Florida-specific adjustments. S Corps are not subject to this tax at the entity level — income passes through to shareholders instead.
Florida does not tax S Corps at the entity level. S Corp income passes through to shareholders, who report it on their federal individual returns. Because Florida also has no state income tax, S Corp shareholders in Florida pay no state income tax on their share of business income — which is a real advantage compared to most other states.
No. Florida does not levy a personal state income tax. That means S Corp shareholders, sole proprietors, and individual business owners pay no state income tax on their earnings in Florida. C Corps do pay Florida's 5.5% corporate income tax, but that's a business-level tax, not a personal one.
Yes. Florida's state sales tax rate is 6%. Most counties add a local discretionary surtax, so the total rate varies by location. If your corporation sells taxable goods or certain services in Florida, you need to register with the Florida Department of Revenue, collect sales tax from customers, and remit it on a regular schedule.
Yes, in most cases. C Corps with an annual Florida corporate income tax liability above $2,500 are required to make quarterly estimated payments to the Florida Department of Revenue. At the federal level, C Corps also pay estimated taxes quarterly using the IRS guidelines for Form 1120-W. S Corps generally don't pay estimated taxes at the entity level, but shareholders may owe estimated taxes on their individual returns.
It depends on the business structure. A Florida C Corp pays the 5.5% state corporate income tax, federal corporate income tax, and sales tax on taxable transactions. If it has employees, it also pays payroll taxes — federal withholding, FICA, FUTA, and Florida reemployment tax. An S Corp skips the state corporate income tax, but shareholders still owe federal income tax on their share of profits. Florida's lack of a personal state income tax makes it one of the more tax-friendly states for business owners.
Florida does not have a traditional franchise tax in the way states like Texas or Delaware do. What Florida does have is a corporate income tax — the 5.5% rate that applies to C Corps. Some older references describe this as a franchise or privilege tax, but the current Florida Department of Revenue refers to it as the corporate income tax. S Corps, LLCs, and sole proprietorships are not subject to it.
