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Top 3 Tax Benefits for the Residents of Florida

Written by Stephanie Fortune

Hi, My name is Stephanie! I am passionate about helping small and medium-sized businesses empower themselves and their employees while working to achieve their strategic goals! By reviewing your unique business needs, we implement Payroll, Insurance, and HR solutions that are right for you!

August 23, 2022

When speaking of Florida, the first thing that comes into mind is its sunny weather, beach fun, and the top quality of living. But did you know they offer top tax benefits too?  

The favorable tax policies benefiting both younger and older taxpayers are adding ways to make Florida the new financial hub. Not only this, but the least corporate tax rate and increased opportunity are also calling entrepreneurs to settle their business here. Read more to know about these tax policies in detail!

What Are the 3 Primary Tax Benefits That You Can Enjoy in Florida?

Apart from offering talent and new opportunities, there is one more reason people shift to Florida, i.e., its tax benefits. Here are the details:

  • Business Tax Benefits

The business-friendly tax policy followed by Florida creates a favorable environment to carry large and small-scale operations in the state. According to a recent estimate, it is seen that families and businesses are saving more than 168 million dollars through this tax benefit. 

Here below are some business taxes that you either don’t have to pay for or get a tax break on it:

  • Property tax on goods-in-transit and business inventories
  • Sales tax on raw material procurement
  • Corporate franchise tax on capital stock
  • Tax benefit on insurance premium
  • Corporate income tax liable on limited partnership

Florida also offers various tax exemptions to promote a healthy environment to companies that utilize clean energy. The resources exempted from tax are solar energy systems, natural gas used to produce electricity, and steam or electricity required for manufacturing.

  • Inheritance and Estate Tax Benefits

Many wealthy individuals are flocking to Florida after inheriting property and wealth to enjoy no inheritance tax benefit, also called ‘death tax.’ Though back in time, Florida used to collect state estate tax as a ‘pick-up tax’, later, after the changes in the Federal tax, it resulted in the phasing out of this tax. 

Now when many states are still determined to keep state death tax, the constitution of Florida prohibits imposing state death tax on its residents. In other words, residents of Florida and their heirs do not have to pay estate taxes to the government.

  • No Tax on Income or Retirement Benefits

Florida is the only one in the nine states that do not charge a tax on individual income. Thus, there is no wonder it attracts so many people to reside in the state. 

However, tax-free retirement benefits form one more reason for a man to reside in Florida even after retiring. Below are the incomes on which retirees do not have to pay tax in Florida:

  • Social security income
  • Income earned from a part-time job
  • Private and public pension income
  • Retirement account withdrawals

This help save thousands of dollars that you may have incurred by living in other states. Like, while the income tax is 0% in Florida, other states charge 3% to 9% tax on income. In fact, the constitution of Florida also prevents municipalities and counties from imposing income tax on local levels. 

This sums up the tax benefits individuals and employers can attract by moving to Florida. However, there are much more reasons for entrepreneurs to move their business to Florida, like the diversity of talent, lower cost of operation, and reduced real estate costs. So, contact us to ensure a smooth transition if you plan to shift your business. 

We can provide you with an experienced HR team that can take up any business challenge that is to come. Also, if you like, you can read more about management, business, and public relation in our blog section. It can give you more knowledge of the field. 

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