Answers
Florida has no personal income tax, which leads a lot of practice owners to assume there is nothing to file at the state or county level. There is, and the filings that get missed are usually the small ones with hard deadlines. These are the Florida-specific questions that come up most.
Reviewed September 2, 2026 by Timothy A. Wijtenburg, CPA · Florida license #AC49291
Florida imposes no individual income tax, so income that passes through from an S-corporation, partnership, or sole proprietorship to a Florida-resident owner is not taxed again at the state level. This is a genuine advantage over most states, but it applies to the owner's personal return only. It does not exempt the business from Florida corporate income tax where that applies, from employer taxes, or from county-level filings on business property.
Generally no. Section 220.22(4), Florida Statutes, directs the Florida Department of Revenue to designate by rule the entities not required to file a return under the Florida corporate income tax code, and it names subchapter S corporations among them unless the entity has taxable income as defined in section 220.13(2). An S-corporation ordinarily has none, because its income passes through to its shareholders instead of being taxed at the entity level. The exception is an S-corporation that does pay federal income tax at the entity level, reported on line 23c of federal Form 1120-S and most commonly the built-in gains tax after a C-corporation converted. The Florida Department of Revenue lists those S-corporations among the entities that must file a Florida corporate income tax return.
Reemployment tax is Florida's name for state unemployment insurance tax. It is paid entirely by the employer, never withheld from employee wages, and it applies only to a limited amount of each employee's wages per year rather than to full payroll. Employers register with the Florida Department of Revenue and report quarterly on Form RT-6. New employers are assigned an initial rate and are later experience-rated, so the rate moves with the employer's own claims history. Current wage base and rate figures should be confirmed with the Florida Department of Revenue for the year in question.
Form DR-405 is Florida's Tangible Personal Property tax return, filed with the county property appraiser — not the state — by April 1 each year. It reports business equipment, furniture, computers, and leasehold improvements used in the business. Each return filed is eligible for an exemption of up to $25,000 of assessed value, and a single return must be filed for each site in the county where the business transacts business, so a practice operating from more than one location files more than one return and is not limited to a single exemption. The exemption is not automatic: a return has to be filed to claim it, and an initial return is required even by businesses that expect to owe nothing. This is the Florida filing practice owners most often do not know exists, and penalties accrue for late or unfiled returns.
Usually yes, and often two. A Business Tax Receipt, formerly called an occupational license, is issued at the county level and frequently also by the city where the practice operates, so a practice inside municipal limits commonly needs both. It is a local registration separate from state entity registration with the Division of Corporations and separate from any professional license. Requirements, fees, and renewal dates are set locally and vary by county and city.
Professional services such as dental and medical care are generally not subject to Florida sales tax. Two adjacent exposures catch practices anyway. Tangible goods sold to patients — certain products dispensed or resold rather than administered as part of treatment — can be taxable, and a practice that sells them may need a sales tax certificate of registration. Commercial rent was long subject to a separate Florida sales tax paid by the tenant under section 212.031, Florida Statutes, but that tax was repealed effective October 1, 2025. No state sales tax and no discretionary sales surtax apply to commercial rent or license fees for rental or occupancy periods beginning on or after that date. The repeal does not reach transient rentals: living, sleeping, or housekeeping accommodations rented for six months or less, the category vacation rentals fall into, remain taxable under section 212.03, as do parking, boat docking, and aircraft tie-down spaces. Rent for occupancy periods through September 2025 stayed taxable under the prior law even when the payment is made later, so a practice settling old rent still pays the tax with that rent to the landlord, who collects and remits it (Florida Department of Revenue Tax Information Publication 25A01-04).
General educational information about United States federal tax rules, current as of the review date above. Tax law changes and every situation turns on its own facts. This is not tax, legal, or financial advice and does not create a client relationship. Inflation-adjusted figures should be confirmed for the year in question before relying on them.
Reasonable compensation: how the number is actually determined, why the "60/40 rule" is not a rule, and what happens when an owner skips salary entirely.
When the election is worth making, the Form 2553 deadline, late-election relief, and what an S-corp actually costs you in exchange.
Due dates, the safe harbors that stop the underpayment penalty, and the withholding trick that fixes a shortfall late in the year.
Section 179 versus bonus depreciation, why financing does not matter, what "placed in service" really means, and the recapture waiting on resale.
Solo 401(k) versus SEP versus cash balance, whether you can still set one up for last year, and what hiring your first employee changes.
General rules only go so far. Bring the specifics and get an answer that accounts for them.
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