Many Americans currently live from paycheck to paycheck working hard to afford the basic items that their families need in order to live in relative comfort. Working hard to afford the basics is often so hard that it is easy to forget about paying taxes. In order to avoid having financial troubles in the future it is important that you and your family learn and understand the state tax laws in Florida.
Legally, each year by April, individuals who have worked during a year are required to file income taxes. By filing these taxes the government will be able to confirm how much you have made by verifying employer records and make sure that you have paid the government any taxes that were due. This can be very stressful for some since getting a federal income tax refund does not always mean that you are getting a state income tax refund. Some individuals find that while they overpaid the federal government they underpaid the state.
The state of Florida is one of the few states where you will not have to worry about underpaying state income taxes. Taxation law dictates that there is no tax in Florida on income, so you do not have to worry about sharing your hard earned money with the Florida government each year. As an added bonus retirement income is not taxes and, recently, the state of Florida stopped requiring couples, businesses, and individuals to file a tax report on investments or other intangible property.
All real estate property in Florida is taxed based on 100 per cent of its total value. There is a homestead exemption available to all year round residents with additional exemptions being offered to home owners that are over 65 years old. The homeowners that are 65 or older can benefit from this tax even if they do not live in the state all year round. However, if you are a senior citizen and a permanent resident of Florida then you will be entitled to both a homestead exemption and a senior citizen tax reduction.
With all of the exemptions and lack of income tax it is easy to start wondering how the state gets any income at all. The state tax in Florida comes primarily from sales taxes which can be as much as 9.5 per cent in some counties. There is also a tax on gasoline of 32.6 cents per gallon and a lower one on diesel of 28.5 cents per gallon. The tax on cigarettes is extremely low at only 33.9 cents per pack and with the steady stream of visitors the Florida state government is able to keep its residents cared for without charging additional state taxes.