Month-end close: sales tax in Florida

Florida adds a county surtax to the 6% state rate, and the surtax applies only to the first $5,000 of each item.

This is part of the sales tax checklist. Florida sales and use tax is filed with the Florida Department of Revenue (DOR) on the DR-15.

Rate. 6% state sales tax plus the discretionary sales surtax of the county where the goods or services are delivered. County rates change on January 1.

Filing. The Department of Revenue sets it each year from the tax the business paid: over $1,000 is monthly, $501 to $1,000 quarterly, $101 to $500 semiannual, $100 or less annual. Most new businesses start quarterly.

Due. On the 1st of the month after the period, and late after the 20th. January's return is due February 1.

The trap. A sale delivered into another county takes that county's surtax rate, not the client's own. On one $8,000 item, surtax is charged on $5,000 and the 6% state tax on the full $8,000.

The month-end steps

1. Confirm what's taxable. Check the client's sales against the DOR's Sales and Use Tax guide (GT-300015), which covers what's taxable and the exemptions [2], and the DOR's Tax Information Publications for recent changes. For example, no state sales tax or surtax applies to commercial rentals, such as office or retail space, warehouses and self-storage units, for rental periods beginning on or after October 1, 2025 [4]. Done when each kind of sale the client makes has been checked against it.
2. Sales for resale. A sale for resale is exempt only when it's documented in one of two ways: a copy, paper or electronic, of the customer's current Florida Annual Resale Certificate (Form DR-13), or a transaction authorization number obtained for each sale using the customer's certificate number [3] [2]. Done when every exempt sale for resale in the month has one of these on file.
3. The rate. The total rate is the 6% state rate plus the county's discretionary sales surtax [2]. Surtax is charged at the rate of the county where the goods or services are delivered, so a sale delivered into another county uses that county's rate [3]. The surtax applies only to the first $5,000 of the sales amount on any one item of tangible personal property. So on a single $8,000 item, surtax is charged on $5,000, and the state's 6% on the full $8,000. The $5,000 limit doesn't apply to transient rentals or to services [3] [1]. Look up each county's rate on the DOR's Discretionary Sales Surtax Information, Form DR-15DSS; new rates take effect on January 1 [2]. Done when each taxable sale carries the surtax rate of its delivery county.
4. The filing basis. The DOR sets it from the sales and use tax the business pays in a year, and reviews every account each year to set the next year's. Most new businesses start quarterly [2]. Use the basis on the client's DOR account; this table shows how the DOR sets it:

5. The return, the DR-15. On Line A, Column 1 is gross sales, not counting tax collected; Column 2 is exempt sales, such as sales for resale; Column 3 is the taxable amount, gross less exempt; and Column 4 is the tax due, including surtax. Line B reports use tax on taxable purchases the business used itself without paying tax, such as untaxed online or out-of-state purchases. Lines 15(a) to 15(d) report the surtax detail, including sales over $5,000 and sales taxed at another county's rate, and the total surtax due goes on Line 15(d) [3]. Done when Column 1 ties to the month's sales in the books, Column 2 to the documented exempt sales, and Column 4 to the sales tax payable account.
6. The due date. Returns and payments are due on the 1st and late after the 20th of the month after each period. January's return is due February 1 and late after February 20 [2]. If the 20th falls on a Saturday, Sunday or a state or federal holiday, the return must arrive by the first business day after it [3]. If the client files and pays electronically on time, it keeps a collection allowance of 2.5% of the first $1,200 of tax due, up to $30. Paper filers don't get it [2] [3]. No DOR source says how to book the allowance the client keeps, so ask the client's accountant. A late return or payment may cost 10% of the tax owed, with a $50 minimum that applies even when no tax is due, and interest at a floating rate the DOR updates twice a year [2] [3]. Done when the DR-15 is filed electronically by the 20th, even if no tax is due, and the payable account is at zero once it's paid.