Florida Corporation Tax Rate

Florida has a 5.5% flat income tax rate for the corporates on their gross income. The Florida Corporate tax rate compared to other states is the lowest.  In the United States, the Florida corporate income tax is the 5th lowest and it ranks below directly after Michigan’s 6.000%.


What is the corporate income tax of Florida?

The corporate income tax of Florida is a tax levied on the business gross taxable income. This tax rate applies to most corporations and businesses doing business or is registered in Florida. The personal income tax in Florida is a bracketed tax system. The businesses are expected to file a tax return yearly, the same as the personal income tax. There are the deductions allowed such as the cost of sold goods, wages paid, and other business expenses. 


Who has to pay the Corporate tax?

The Florida corporate tax is to be paid by all businesses operating as a flow-through entity such as a partnership, sole proprietorship, or an S-Corporation) should report their income. This enables them to pay Federal and Florida corporate income taxes. The business structure that is commonly used is subjected to pay the corporate taxes referred to a C-Corporation.

All incorporated businesses in Florida, regardless of whether they pay or not any taxes, should at least file an informational tax return. It is compulsory that they file it with the Florida Department of Revenue as the priority and should file with the IRS, the federal business tax return (Form 1120).

Tax Rate

  • The Florida Corporate Tax rate in 2020 is 5.5%. The standard corporate tax in Florida on federal taxable income is 5.5%. Florida corporate income is taxed in two ways: on federal taxable income a state tax of 5.5% or as an (AMT) alternative minimum tax.
  • Florida’s corporate income tax rates were set to revert to 5.5 percent of 2018. However, the legislation was enacted to extend the 2019 rate to 2020 and 2021 at 4.458 percent. 

Who is to pay Florida corporate income tax?

Any corporation in Florida owing below $2500 in tax or has zero tax due, need to file Florida Corporate Income Tax Return. There is a need to file (Form F-1120A) as the short form when Florida’s net income is $45000 or less. Moreover, when there is 100% business done in Florida. Florida Corporations should pay federal corporate income tax and this is based on tax brackets. Thus, the corporate tax is spread evenly with various levels among companies. This is updated yearly.