New Florida tax-free holiday is here. What you should know
If you’re in Florida and missed out on buying some things you wanted during the holidays, here’s some good news. A bonus New Year Florida sales tax holiday has started and will continue until mid-January. This tax-free period is similar to the back-to-school tax-exempt shopping offered by Florida and other states, usually in the summer.
It’s worth noting that offering a second tax-free holiday for back-to-school shopping is a first for the Sunshine State. And since the tax-free weeks coincide with the start of the New Year, many people might overlook it. So, here are a few things to know before you shop.
Florida tax-free holiday began New Year’s Day
The first thing to know is that the new Florida sales tax holiday begins on New Year’s Day, Monday, Jan. 1, and runs through Sunday, Jan. 14.
Previously, Florida had only one sales tax holiday for back-to-school shopping. However, the state introduced the additional back-to-school tax holiday after Gov. Ron DeSantis signed a massive $1.3 billion tax relief bill. As reported by Kiplinger, Florida also had two sales tax holidays for disaster preparedness in May and August of last year, due to the new legislation.
It’s unclear whether Gov. DeSantis will approve two back-to-school Florida sales tax holidays for next year, i.e., (the 2024-25 fiscal year).
What’s included in Florida’s sales tax holiday?
- Clothing items, wallets, shoes, bags, and more, priced at $100 or less
- Essential school supplies like pens, notebooks, markers, and calculators, priced at $50 or less
- Learning aids, puzzles, and toys meant for educational purposes, priced at $30 or less
- Personal computers and their accessories (purchased for noncommercial home or personal use), including keyboards, monitors, etc., and priced at $1,500 or less
Items like cell phones and video game consoles are not eligible for the tax-exemption.
For more information on what kinds of items are and aren’t eligible for the Florida sales tax holiday, see the Florida Department of Revenue Tip Sheet.
Is sales tax in Florida 7%?
Florida’s state sales tax rate is 6%, but a maximum of 2% can be added for local tax. So, total sales tax can be as high as 8% in some places in the state.
According to the Tax Foundation, Florida has an average combined state and local tax rate of 7.02%. See Kiplinger’s tax guide for more information about other taxes in Florida.
States with no income tax
Florida’s New Year sales tax holiday is an opportunity to save on many items. But it’s worth noting that due to the new state tax law, several children’s products are permanently tax-exempt in the state. For example, the following items are tax-free in Florida.
- Baby and toddler diapers, clothing, and footwear
- Baby equipment (e.g., strollers and changing tables)
- Baby safety gates and play yards
When the permanent sales tax cuts were proposed, DeSantis told reporters, “It’s hard enough raising kids as it is. Now, you get baby food, diapers, wipes, baby clothes, the whole shebang, including things like cribs and strollers, which are very, very expensive. So that is going to be permanently tax-free in the state of Florida.”
The new law also exempts other items from sales tax, including over-the-counter pet medications. Although, while many states still tax groceries, most groceries and prescription medications were already exempt from sales tax in Florida.
And, of course, Florida is a state with no income tax. So, Floridians don’t pay state income tax on various forms of income, including 401(k) distributions, investment income, wages, lottery winnings, etc.
Related
- Why So Many People Retire in Florida
- What’s in the Florida $1.3B Tax Relief Bill?
- States That Won’t Tax Your Lottery Winnings
All contents copyright 2024 The Kiplinger Washington Editors, Inc. Distributed by Tribune Content Agency, LLC
All contents copyright 2024 The Kiplinger Washington Editors, Inc. Distributed by Tribune Content Agency, LLC