You’re considering a move, or you work with clients in both states, and you need to know which tax structure actually costs you less. Florida and Texas both have reputations as business-friendly states—no state income tax in either—but the devil is in the details. County surtaxes, what gets taxed, who files what, filing deadlines: these vary sharply. This checklist walks you through the real rules so you can see what applies to your business and stop guessing.
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Does this apply to your business in Florida?
If you earn revenue in Florida, you need to understand Florida’s sales tax rule: tangible personal property is taxable unless a specific exemption applies; services are NOT taxable unless they’re listed in Florida Statute 212. The Florida Department of Revenue maintains the current exemptions list. Most service businesses (consulting, landscaping labor, cleaning service labor) don’t owe sales tax on the service itself. But if you sell tools, equipment, products, or repairs that include parts, you almost certainly collect sales tax on those items. The moment you cross state lines or operate in multiple counties, county surtax rates change—sometimes significantly.
How the rate works
Florida has a state sales tax rate of 6%. On top of that sits a county surtax that varies by county—some counties add 0.5%, others 1% or more. Your combined rate depends entirely on where the transaction happens. Texas has a state rate of 6.25% plus local surtaxes (typically 0.25% to 2%), which also vary by county. Neither state has a state income tax—both rely on sales tax revenue for operations. To find your exact combined rate in Florida, visit floridarevenue.com or use their calculator. The same applies in Texas: the state Comptroller’s website has a lookup tool. The structure is the same in both states (state + local), but the numbers differ. County surtax in Florida is determined by the location of the transaction, not your registered location.
How to file step by step
If you collect sales tax in Florida, you file the DR-15 (Florida Sales, Use and Discretionary Sales Tax Return) through the Florida Department of Revenue website. Log in with your sales tax registration number and PIN. The online system walks you through the transaction month, shows which categories of sales the state requires you to report, and calculates any tax owed based on the rates you’ve entered for your location. You’ll report total sales for the reporting period, then itemize sales by tax rate (state only, state + surtax, exempt sales, etc.). Your combined county surtax is included in the calculation once you’ve set your location correctly. The filing deadline is the 20th of the month following the end of your reporting period (usually monthly, but quarterly or annual may apply depending on your sales volume). Late payments incur interest and non-filing penalties. If you’re unsure which sales are taxable in your category, this is walked through step by step here.
In Texas, the process is similar: file the Texas Sales Tax Return through the Comptroller’s online system (comptroller.texas.gov). You report taxable sales, non-taxable sales, and calculate tax owed at your applicable rate. The deadline is also the 20th of the month after the reporting period. Both states penalize late filing, but both also offer online portals so you can file from anywhere.
One key difference: Florida allows you to file and pay sales tax yourself if you’re organized, without hiring a tax firm. You need clear transaction records broken down by tax category—state only vs. surtax—so the categorization step matters. Your accountant or bookkeeper can help organize transactions before filing, or you can handle it yourself with organized records. Texas has the same self-file option. Both states offer online filing, so the barrier to entry is low if you keep good records.
Common mistakes
Mistake 1: Misclassifying your service as taxable. A cleaning company charges clients for labor. In Florida, cleaning labor is NOT taxable. But if you sell cleaning products or equipment as part of that service, the tangible items are taxable. Many service businesses add a markup on supplies and forget to separate the supply cost (taxable) from the labor cost (non-taxable). The fix: break down your invoices clearly—line item for labor, line item for supplies. Track which products are tangible goods so you tax them correctly.
Mistake 2: Applying the wrong county surtax rate. You move between Florida counties for jobs. Each county has a different surtax rate. If you invoice from Miami-Dade, you use that surtax rate; if you work in Broward, you use Broward’s rate. Many small operators use one “blended” rate across all customers and underpay in high-surtax counties. The fix: confirm the county where the sale happens and apply that county’s surtax. Florida’s tax basics course covers the role of the Florida Department of Revenue and how they handle multi-county disputes, so you understand the rule before problems start.
Mistake 3: Missing the filing deadline because you didn’t reconcile transactions on time. The 20th of the month comes fast. If you wait until day 19 to collect and categorize three months of transactions, you’ll rush, miss details, and possibly file wrong. The fix: reconcile and categorize transactions monthly as they happen. A simple spreadsheet or accounting software keeps sales by category visible. The earlier you categorize, the less scrambling you do at filing.
Mistake 4: Not tracking exemption documentation. If a customer claims a resale certificate or another exemption, you’re responsible for keeping that form on file. Many states audit exemption claims, and if you can’t produce the certificate, the sale becomes taxable retroactively. The fix: create a simple file (digital or paper) for every exemption document you receive. Store it by customer or by date. Auditors want to see it, and you’re protected if you have it.
Frequently Asked Questions
Does Texas or Florida have lower sales tax overall?
Texas’s state rate is 6.25%; Florida’s is 6%. But both have county surtaxes, and those vary widely. In some Florida counties the combined rate is 6.5% to 7.5%, while in some Texas counties it’s 8% or higher. There’s no blanket “lower” state—it depends on which counties you’re in. Check your specific county rates before comparing.
Do I have to file sales tax in both states if I operate in both?
Yes. If you have customers in Florida and have met the sales tax nexus threshold (which is typically low or non-existent for in-person transactions), you file a Florida return. The same applies in Texas. You file separately in each state where you have nexus. Your accountant can help track which states require you to file, but don’t assume operating in both means you do everything once.
Can I deduct sales tax I collect on my taxes?
No. Sales tax you collect is owed to the state—it’s not your business income or expense. You don’t deduct it from your business income. However, sales tax you pay on business purchases may be deductible or creditable depending on the item and your tax structure. Your CPA handles those deductions when they file your income tax return.
What happens if I file my sales tax return late?
Both Florida and Texas charge non-filing penalties, plus interest on unpaid tax. The exact amount depends on how late you are and your history. The fastest way to avoid this: file on time, even if you pay in installments later. Both states allow you to file the return on deadline and request a payment plan if you can’t pay the full amount immediately.
Can I use accounting software to organize sales tax data instead of doing it by hand?
Yes. Most accounting software has sales tax category fields and can calculate tax by rate. The key is setting up those categories correctly from the start—by state, by county, by tax rate. Once set up, the software automates much of the categorization. You still need to review transactions for accuracy before you file, but software saves hours of manual work.
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.
The real tax comparison between Florida and Texas comes down to where your customers are and which products or services you sell. Neither state has income tax—that’s the headline. But sales tax, filing deadlines, and exemption rules vary sharply. Track your transactions by location and tax category as they happen, verify your combined rate with the state’s official calculator, and file on deadline. The states make these tools easy to access online. Your advantage is doing it yourself or working with a bookkeeper who organizes your data so your CPA reviews accurate numbers.