What kind of corporation tax does Florida have?

Florida imposes a state corporate income tax on most businesses structured as C Corporations or entities taxed as corporations for federal purposes. Here’s how it works:

• The corporate income tax rate in Florida is currently 5.5%. It is applied to a corporation’s federal taxable income, with certain state-specific adjustments.
• S Corporations, LLCs, partnerships, and sole proprietorships are generally exempt from Florida’s corporate income tax, unless they elect to be taxed as a C Corporation.
• Florida offers a $50,000 exemption, meaning the first $50,000 of taxable income is not subject to tax.
• Corporations must file the Florida Form F-1120 each year to report income and calculate tax owed. Filing is due by the first day of the fourth month after the end of the corporation’s fiscal year (usually April 1 for calendar-year filers).
• Florida determines taxable income for multistate corporations using an apportionment formula that factors in sales, property and payroll.

Florida lacks a state-level personal income tax, making it rather attractive for corporate operations and businesses seeking lower overhead costs there. Entities taxed like traditional corporations are impacted heavily by state corporate income tax laws pretty typically each year.