Florida Income Tax Calculator 2025

Understanding the latest EITC rates and thresholds is crucial for taxpayers who wish to maximize their potential credit and accurately plan their finances. The EITC can have a significant impact on a family’s annual budget, offering relief and financial stability to millions of Americans each year including those in Florida. The Earned Income Tax Credit (EITC) is a significant tax credit in the United States, designed primarily to benefit working individuals and families with low to moderate income.

All information prepared on this site is for informational purposes only, and should not be relied on for legal, tax or accounting advice. You should consult your own legal, tax or accounting advisors before engaging in any transaction. The content on this website is provided “as is;” no representations are made that the content is error-free. Get started with Taxfyle today, and see how filing taxes can be simplified.

In 2026, that taxpayer would pay 10% on the first $12,400 of earned income, and then 12% on any income above $12,401 and up to $50,400. “Going into 2026, they could use that information to estimate what their tax return potentially is going to be, and what they might owe in taxes,” Gorski said. The IRS tweaks those thresholds to avoid so-called “bracket creep,” which can occur if the bands fail to keep up with inflation. Without those annual adjustments, workers who get a cost-of-living pay increase could be pushed into a higher tax bracket even though their standard of living hasn’t changed. These numbers, however, can help you make a good start with respect to your tax planning. “Our annual projections provide tax professionals with the timely, data-driven intelligence they need to strategize effectively for the upcoming tax year well ahead of official IRS figures,” said Evan Croen, head of Bloomberg Tax & Accounting.

• Debt.org wants to help those in debt understand their finances and equip themselves with the tools to manage debt.
• This system of contributions not only ensures the ongoing viability of these programs but also directly ties the benefits an individual receives in retirement or during periods of disability to their work history and contributions over their working life.
• These are not the tax rates and other numbers for 2025 (you’ll find the official 2025 tax rates here).
• “Going into 2026, they could use that information to estimate what their tax return potentially is going to be, and what they might owe in taxes,” Gorski said.

In the 2008 and 2012 presidential elections, Barack Obama carried the state as a northern Democrat, attracting high voter turnout, especially among the young, independents, and minority voters, of whom Hispanics comprise an increasingly large proportion. 2008 marked the first time since 1944, when Franklin D. Roosevelt carried the state for the fourth time, that Florida was carried by a Northern Democrat for president. The drop in elevation from its headwaters South Florida to its mouth in Jacksonville is less than 30 feet (9.1 m). Various Native American tribes have inhabited Florida for at least 14,000 years. In 1513, Spanish explorer Juan Ponce de León became the first known European to make landfall, calling the region La Florida (land of flowers) (la floˈɾiða).

The federal estate tax exclusion for decedents dying in 2026 will increase to $15,000,000 per person or $30,000,000 per married couple. For 2026, Bloomberg predicts that the total contributions you can make to all of your traditional IRAs and Roth IRAs can’t be more than $7,500 ($8,600 if you’re age 50 or older) or your taxable compensation for the year, whichever is smaller. For 2026, Bloomberg predicts the amount of the child tax credit will be $2,200. The amount used to determine the amount of the child tax credit that may be refundable is projected to be $1,700. As of 2010, those of Hispanic or Latino ancestry accounted for 22.5% (4,223,806) of Florida’s population. Florida has a large and diverse Hispanic population, with Cubans and Puerto Ricans being the largest groups in the state.

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• That means that inflation is holding steady—and you’ll see the result on your tax return in 2026.
• For example, if you’re a California resident who worked in Florida in 2024, you must report your Florida earnings on your California (and federal) return.
• For example, if you are running a small business, there are many simple things that you are able to have tax deducted from.

How to Determine Your Tax Bracket

The federal income tax system in 2024 has seven tax brackets, ranging from 10% to 37%, depending on your taxable income and filing status. For example, single filers earning up to $11,600 fall into the 10% tax bracket, while those with taxable income above $609,350 are taxed at the top rate of 37%. Additionally, some counties also collect their own sales taxes of up to 2%, which means that actual rates paid in Florida may be as high as 8%. Here are the combined state and local sales tax rates for each of Florida’s counties. Florida’s official nickname is “The Sunshine State,” but it may as well be “The Low-Tax State.” That’s because Florida is the only state east of the Mississippi that doesn’t collect income taxes of any kind. The state does charge a sales tax rate of 6% though, and most counties charge sales taxes of their own.

What happens to the homestead exemption when the property owner dies?

However, it’s important to note that Floridians are still subject to federal estate taxes if their estate exceeds the federal exemption limit. The absence of these state taxes simplifies estate planning and can result in substantial savings for Florida residents. Florida’s lack of state income tax means the state doesn’t tax individual income, like retirement and pensions, Social Security benefits, investment earnings, and military pay. This offers an appealing financial break for retirees, investors, and military members, as it can mean they keep more of their earnings. Because Florida does not have a personal income tax, military pensions and active-duty pay are not taxed. The Florida sales tax is 6% for most products, and the proceeds make it the single largest source of tax revenue for the state government.

Have Questions About Your Taxes?

The state updated income tax brackets, filing requirement thresholds, the standard deduction and certain credits for the 2024 tax year to account for inflation, which was 3.3 percent in California from June 2023 to June 2024. On top of the state’s homestead exemption program, some county and municipal governments offer an additional $50,000 property tax break for residents 65 years or older who meet certain requirements, including a household income at or below $36,614. Come tax season, taxpayers in Florida can finish up their federal taxes, then kick back and enjoy the sunshine. It means there’s no need to research special state deductions and credits. For high income earners, it means there is a huge incentive to take their talents to South Beach. Your marginal tax rate determines what florida income tax you pay when you receive the next dollar of income—it represents the highest tax rate you pay for the year.

You’re still responsible for paying federal income taxes, as well as state sales and property taxes. For example, if you earned money from Florida sources in 2024, you’ll likely still need to file a federal tax return for the 2024 tax year (the taxes you file in 2025). One of the most notable aspects of Florida’s tax system is the absence of a personal income tax.

Florida Estate Tax

Perhaps office supplies, repairs on your office computers, building repairs, or even purchasing your workers’ suitable clothing for their job (e.g. a plumber should be wearing a boiler suit). While they are little things that not many people think about, your business thrives on these tiny details and therefore you are able to have tax deductions on them. TurboTax makes it easy to file your federal taxes and understand how Florida’s unique tax setup impacts you. Whether you’re filing on your own or looking for a little guidance, TurboTax has your back.

This unique aspect distinguishes Florida from many other states, making it an attractive destination for individuals and businesses. The absence of state income tax benefits personal income and influences the broader economic landscape, attracting new businesses and fostering a business-friendly environment. This policy impacts various financial planning and investment aspects, underscoring Florida’s reputation as a tax-friendly state. Florida’s tax system is a topic of significant interest for residents, businesses, and those considering relocation to the Sunshine State. This article delves into the intricacies of Florida’s tax regulations, offering a comprehensive guide that explains the current tax rates and laws and addresses common questions and misconceptions.

The distinct components of FICA, namely Social Security and Medicare, each have specific rates and caps that determine the amount of tax levied. This system of contributions not only ensures the ongoing viability of these programs but also directly ties the benefits an individual receives in retirement or during periods of disability to their work history and contributions over their working life. As such, FICA represents a critical element of the United States’ approach to social welfare, providing foundational financial security and healthcare benefits that many Americans rely on. In this guide, we’ll explore key components of The Sunshine State’s tax system, from income and sales taxes to property taxes and retirement benefits. Because property tax is only collected at the county level in Florida, it ranges significantly depending on where you live.

Florida also boasts a rich history, with historical influences from Spanish and Native American heritage, evident in many of its cities and landmarks. Select a periodic pay calculator below, continue reading to view the detailed instructions for this set of calculators or access alternate tax calculators in the Florida Tax Hub. You can connect with a licensed CPA or EA who can file your business tax returns. The TPP return is due to the local property appraiser by April 1 and reports all property owned on January 1.

Two common ways to reduce your tax bill are by using credits and deductions. The second trims your taxable income, possibly slipping you into a lower tax bracket. Seven states – Florida, Alaska, Wyoming, Texas, South Dakota, Tennessee and Nevada – have no state income tax. Washington only taxes capital gains for high-earning individuals, and New Hampshire taxes interest and dividend income, but not income from wages.

So if you own a company doing business in Florida, you may owe money to the state government. Andy Rosen is a former NerdWallet writer who covered taxes, cryptocurrency investing and alternative assets. He has more than 15 years of experience as a reporter and editor covering business, government, law enforcement and the intersection between money and ideas.

Furthermore, withholding tax does not apply to employment income in Florida.As for the other states where income tax conditions are the same, we should mention Alaska, Nevada, South Dakota, Texas, Washington, Tennessee, New Hampshire and Wyoming. The following tax tables are supported by iCalculator™ US as part of the suite of free tax tools available in the US Tax HUB we provide for Florida. The federal standard deduction for a Head of Household Filer in 2025 is $ 22,500.00. Florida is one of several US states with no income tax, making it popular for those seeking to stretch their income. If the deceased was a homestead property owner and has a surviving spouse, the property will continue to receive the homestead exemption in the surviving spouse’s name. The homestead exemption will remain in place for as long as the spouse or joint tenant owns the property and maintains it as his or her permanent residence.

Tax Loopholes & Credits to Reduce Your Bill

Examples include the child and dependent care credit, adoption credit, saver’s credit, mortgage interest tax credit, and alternative motor vehicle credit. The so-called “kiddie tax” (officially Unearned Income of Minor Children Tax) is applied to any unearned income of children under the age of 19 and college students up to the age of 24. As mentioned earlier, the United States follows a progressive income tax system. In that scheme, not all income is treated equally, which makes a certain amount of sense as long as we lack an appetite for a flat tax plan — as we shall attempt to demonstrate. The first post-Reconstruction era Republican elected to Congress from Florida was William C. Cramer in 1954 from Pinellas County on the Gulf Coast,210 where demographic changes were underway. In this period, African Americans were still disenfranchised by the state’s constitution and discriminatory practices; in the 19th century, they had made up most of the Republican Party.

When your income jumps to a higher tax bracket, you don’t pay the higher rate on your entire income. Florida, known as the “Sunshine State,” is located in the southeastern region of the United States. It is bordered by the Gulf of Mexico to the west, the Atlantic Ocean to the east, and Georgia and Alabama to the north. Florida is renowned for its extensive coastline, tropical climate, and unique cultural influences that blend American, Hispanic, and Caribbean elements. This distinct cultural mix is evident in the state’s music, cuisine, and overall lifestyle, making it a melting pot of diverse traditions and customs.

Overview of Florida Taxes

A qualified charitable distribution (QCD) allows you to roll funds directly from your IRA to a qualified charity. Those amounts can be used to satisfy your required minimum distributions (RMDs) for the year, and the amount donated is excluded from your taxable income—you won’t even have to itemize to do it. The total amount of QCDs that you can exclude from your gross income is predicted to be $111,000 in 2026. Sole proprietors and owners of pass-through businesses like limited liability corporations (LLCs), S corporations, and partnerships may be eligible for a deduction of up to 20% to lower the tax rate for qualified business income. Bloomberg Tax & Accounting released its 2026 Projected U.S. Tax Rates, which reflect slightly higher numbers as compared to 2025. Those bumps will push out deduction limitations and result in upward adjustments to tax brackets and increases to other key thresholds.

Get $30 off a tax consultation with a licensed CPA or EA, and we’ll be sure to provide you with a robust, bespoke answer to whatever tax problems you may have. AARP is a nonprofit, nonpartisan organization that empowers people to choose how they live as they age. Many, or all, of the products featured on this page are from our advertising partners who compensate us when you take certain actions on our website or click to take an action on their website.