Florida levies a 6.00% state sales tax on most retail purchases. Local jurisdictions add an average of 1.00%, bringing the typical combined rate to 7.00%. Rates vary significantly by county and municipality.
On large purchases like a $55,000 vehicle, FL sales tax comes to $3,850.00 at the combined rate. On a $150,000 boat or RV, the tax bill is $10,500.00. These are significant costs that HNW buyers often plan around domicile or purchase location.
Florida has no income tax. Residents who itemize can deduct state and local sales taxes (SALT) under federal law, up to the $10,000 SALT cap. This is especially valuable in FL since there is no income tax alternative to deduct.