FLORIDA BUSINESS TAX · 3 MIN READ
Does Florida Have a State Corporate Income Tax? (Exemptions and Thresholds)
By Hevia & Hevia CPA Firm · Published
Reviewed by Alexander Hevia, CPA, J.D., LL.M. (Taxation) —
Yes. Florida generally imposes a 5.5% corporate income/franchise tax on Florida net income, with a $50,000 exemption. Whether your business must file or pay depends on its tax classification, activities, and applicable exemptions. The absence of Florida personal income tax does not mean all businesses are free of state income tax. Florida Department of Revenue: Corporate income tax
Which businesses generally need to file?
Corporations doing business, earning income, or existing in Florida generally have a filing requirement. An LLC taxed as a corporation can also fall within Florida’s corporate income tax rules.
The letters “LLC” do not tell you the complete tax answer. Your CPA needs to know the entity’s federal classification and any elections it has made. Florida Form F-1120 instructions
How does the $50,000 exemption work?
The exemption reduces the Florida tax base after the applicable federal-to-state adjustments, allocation, and apportionment. It is not a $50,000 gross-revenue threshold.
For a simplified illustration, assume a corporation has $100,000 of Florida adjusted income after all relevant adjustments and apportionment, and the full $50,000 exemption applies:
| Calculation | Amount |
|---|---|
| Florida adjusted income | $100,000 |
| Exemption | ($50,000) |
| Florida net income subject to tax | $50,000 |
| Tax at 5.5%, before credits | $2,750 |
This is an illustration, not a complete return calculation. Controlled groups generally share one exemption; it is not automatically available in full to every related corporation. Florida corporate tax overview, Form F-1120 instructions
Does having no tax due eliminate the return?
No. A corporation required to file generally must submit its Florida return even when no tax is due. The exemption can reduce the amount payable without eliminating the filing obligation. Florida Department of Revenue
What about S corporations, partnerships, and sole proprietors?
- S corporations: Generally do not have a Florida corporate return requirement unless they have applicable federal entity-level taxable income, such as certain built-in gains or passive income.
- Partnerships and LLCs taxed as partnerships: Generally do not pay Florida corporate income tax themselves, but a Florida partnership information return may be required when a partner is subject to Florida corporate income tax. A corporate partner can have its own filing obligation.
- Disregarded single-member LLCs: Generally do not file a separate Florida corporate income tax return; the owner’s classification matters. A corporate owner may need to include the activity in its return.
- Individual sole proprietors: Florida does not impose personal income tax, but federal tax and other business obligations remain.
Florida Form F-1120 instructions, Florida: Personal income tax, Florida Department of Revenue corporate tax FAQ
What if the business operates in multiple states?
Florida uses allocation and apportionment rules to determine the income taxable here. Federal taxable income is a starting point, not necessarily the final Florida tax base. Other states can also impose obligations based on the business’s activities. Florida corporate income tax overview
For a planning discussion, bring your recent federal and state returns, entity election records, ownership chart, and information about operations outside Florida. We recommend reviewing state obligations before expanding operations or changing tax classifications.
Hevia & Hevia CPA Firm helps business owners connect entity structure, tax preparation, and planning. Explore business tax services or contact our Miami-based team for remote assistance throughout Florida.
General information checked October 26, 2026. Special industries, affiliated groups, and particular transactions can require additional analysis.
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