(The Center Square) – According to data from a national tax policy group, Florida’s combined sales tax rate ranks 24th.
The Washington D.C.-based Tax Foundation ranked Florida as the 24th highest combined state/local sales tax rate at 7%. The state sales tax is 6% and the average county levy is 1.02%. Groceries and prescription medicines are exempt from sales tax.
The Sunshine State is one of 38 states that allows local sales taxes and 45 out of the state’s 67 counties add one, with the lowest being Citrus County with a combined rate of 6.5%. The maximum local surcharge is 1.5%.
According to data from the Florida Department of Revenue, sales tax revenues added up to $35.8 billion of the state’s $47.33 billion in total collections or 75.6%.
Florida has lower sales tax rates than its neighboring states. Alabama is fifth highest with a combined rate of 7.06%. Georgia (19th) has a rate of 7.38%.
Regionally, only Mississippi (7.06% combined rate, 22nd) and South Carolina (7.5% for 19th) are lower than Florida’s rate.
Nationally, Louisiana was highest with a combined rate of 9.56%, followed by Tennessee a tick behind at 9.55%, Washington was fourth (9.38%) and rounding out the top five was Alabama (9.29%).
Alaska has the lowest combined sales, as cities levy an average of 1.82%, but the state doesn’t charge sales tax. Five states – Alaska, Delaware, Montana, New Hampshire and Oregon – don’t collect sales taxes.
The Tax Foundation says sales taxes are responsible for 32% of state tax receipts and 13% of local tax collections, adding up to 24% of combined revenue.
Published August 21, 2024
