If you own a business in Broward County, Florida, you’re dealing with sales tax on top of the state income tax structure—and many small-business owners get caught off guard by how the rates stack up or which sales actually require a tax calculation. You might not be sure whether your specific service or product is taxable under Florida law, or you’re unsure whether you’ve been filing your Florida Department of Revenue return correctly. The good news: the filing process itself is straightforward once you understand the two-layer rate structure and know which transactions count as taxable sales.
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Does this apply to your business in Florida?
Florida taxes tangible personal property (goods you sell) at a standard state rate, unless a specific exemption applies. Services are generally not taxable in Florida unless they’re explicitly listed in the tax statute. The Florida Department of Revenue publishes guidance on what qualifies, and Broward County also applies its own county surtax on top of the state rate. If you sell physical products, you almost certainly file sales tax; if you sell labor or professional services only, you may not.
How the rate works
Florida’s sales tax is built in two layers: the state contributes a base rate, and Broward County adds a surtax on top. You don’t calculate them separately—instead, you charge and remit a combined rate that the Florida Department of Revenue makes easy to look up. The exact combined percentage varies by county and can change when local voters or the state legislature adjust it. Rather than guessing, visit the official Florida Department of Revenue website or use their rate calculator to confirm your Broward County combined rate before filing. This ensures you’re current and correct, especially if rates have shifted since you last filed.
The reason the state separates state and county rates in law is simple: county revenues fund local services. When you file, you report gross sales, then subtract eligible exemptions, then apply the combined rate. The combined total goes into your DR-15 return—more on that in the next section.
How to file step by step
The Florida Department of Revenue form DR-15 is your monthly sales tax return. Here’s the process:
Step 1: Gather your sales data. Pull your gross sales from your business records for the month. This includes all taxable transactions—tangible goods you sold, plus any services that fall under Florida’s taxable services list. Separate out any exempt sales (like certain resale transactions if you have wholesale customers).
Step 2: Calculate taxable sales. Subtract your exempt sales from gross sales. This is your taxable sales figure. If you’re unsure whether a service or product qualifies, check the Florida Department of Revenue website or consult your CPA—don’t guess and hope.
Step 3: Apply the combined rate. Multiply your taxable sales by the combined Broward County rate you looked up. This is the amount you owe in sales tax. You’ll file this on the DR-15.
Step 4: File by the 20th. Sales tax returns are due by the 20th of the month following the month you’re reporting. So April sales are reported by May 20th. File electronically through the Florida Department of Revenue portal. Many small-business owners use a platform that automates transaction categorization and tax calculation so you’re not manually sorting receipts every month—this step-by-step process is walked through in greater detail here.
Step 5: Remit payment. Send the tax amount owed along with your return. Late payments may incur penalties, so treat the 20th as non-negotiable.
Common mistakes
Mistake 1: Including exempt sales in your taxable total. If you have wholesale customers or sell to resellers, those sales might be exempt if you have a valid resale certificate on file. Mistakenly taxing exempt sales means you overstate your liability and either overpay or file an incorrect return. Always verify whether a customer qualifies for an exemption, and keep resale certificates organized. If you’ve over-remitted, you can request a refund from the Department of Revenue.
Mistake 2: Forgetting the county surtax. Some business owners calculate only the state rate and miss the Broward County surtax entirely. The combined rate is higher than 6% alone. If you file with only the state rate, you’ll under-remit, and the Department of Revenue will eventually catch up with you. Use the official rate lookup every time you file to confirm you’re including both layers.
Mistake 3: Misclassifying a service as non-taxable. Florida law is specific about which services are taxable. A common stumble: if you provide repairs to tangible property, that labor might be taxable as a “service to tangible personal property.” If you install, repair, or alter goods, or if you wrap or prepare goods for shipment, you may owe tax on the labor portion. It’s not enough to assume “we sell a service so we don’t file sales tax.” Read the statute or ask your CPA if your specific service triggers a tax obligation.
Mistake 4: Mixing personal expenses into sales records. If your gross sales number includes non-business income or you haven’t carefully separated business sales from other activity, your taxable sales will be wrong. Keep your business bank account separate from personal accounts, and reconcile monthly so you know exactly what qualifies as taxable sales. This also makes filing faster and less error-prone.
Frequently Asked Questions
Q: What is Broward County’s sales tax rate?
The combined rate in Broward County is the Florida state rate plus the county surtax. Rather than state a specific percentage here (rates can change), always check the Florida Department of Revenue website or rate calculator before filing each month. This takes 30 seconds and ensures accuracy.
Q: Do I have to file a DR-15 if I have no sales in a month?
Florida requires you to file a return even if you had zero sales in that month—file a zero return. This keeps you in compliance and shows you’re actively registered and monitoring your business. Skipping a month, even a quiet one, can trigger follow-up notices.
Q: Are labor and services taxable in Florida?
Most labor and services are not subject to Florida sales tax. However, certain services—like repairs to tangible property, installation services, pest control, and others—are taxable under Florida statute. If you’re unsure, check the Florida Department of Revenue guidance or have your CPA review your service offerings.
Q: What happens if I file late?
Late filings may result in penalties assessed by the Florida Department of Revenue. The 20th of the following month is the deadline. If you know you’ll be late, file as soon as you can and contact the Department if you need to discuss payment arrangements. Many penalties can be reduced or waived if you have a good filing history and correct the issue promptly.
Q: Can I file my DR-15 online?
Yes. The Florida Department of Revenue provides an online portal where you can file and pay electronically. Many businesses also use third-party platforms that integrate with their accounting records and file automatically, which reduces manual data entry and filing errors. For a walkthrough of how the Department’s filing system works, this lesson covers it step by step.
Disclaimer: This article is for general educational purposes and isn’t a substitute for advice from a licensed CPA or tax attorney. Rules vary by jurisdiction and change over time—always confirm current requirements with the Florida Department of Revenue or your advisor.
Build a sales tax habit that sticks
Filing sales tax every month on schedule is a habit that protects your business from penalties and keeps you in good standing with the Florida Department of Revenue. The key is having your transaction data organized so you can categorize sales by type, apply the correct rate, and file in minutes instead of hours. When you understand the structure—state rate plus county surtax, taxable goods, exempt services—the actual filing becomes routine. Many small-business owners find that automating transaction categorization makes the monthly rhythm painless, which means you stay compliant without stress or last-minute scrambling.
This article is for general educational purposes and isn’t a substitute for advice from a licensed CPA or tax attorney. Rules vary by jurisdiction and change over time — always confirm current requirements with the Florida Department of Revenue or your advisor.
If you are comparing this against your Florida sales tax obligations, the complete Florida sales tax guide is the best next stop.