You’re thinking about expanding your small business from Florida to Texas, or you’re weighing which state makes sense for your next location. One of the biggest questions on your mind is tax burden. Both states have reputations as business-friendly on income tax, but the details matter—and they’re surprisingly different when you look at sales tax, filing requirements, and what you owe on specific services or products. This step-by-step comparison cuts through the marketing noise and shows you the real structural differences you need to understand before you move revenue or open a second location.
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Does this apply to your business in Florida?
If you operate or sell in Florida—whether you’re purely Florida-based or multi-state—you must collect sales tax on taxable sales. The Florida Department of Revenue defines the rules: tangible personal property is taxable unless specifically exempt, and services are NOT taxable unless they’re listed in Statute 212. If you’re considering Texas, you’ll face a similar structure: sales tax on tangible goods, but a different state rate and no income tax at any rate. Both states require you to file returns, but on different schedules and with different exemptions.
How the rate works
Florida’s sales tax structure is simple on the surface: a 6% state rate, plus a county surtax that varies by county. The county component ranges from 0.5% to 2%, depending on where you’re located, bringing your combined local rate somewhere between 6.5% and 8%. Texas has no state income tax—that’s the headline—but it does have a state sales tax of 6.25%, plus local district surtaxes that can add another 1% to 2%. Both states, in other words, hit you with a combined rate that depends on your local jurisdiction.
The key difference isn’t the headline rate; it’s what you’re required to collect on. Since services are generally not taxable in Florida unless explicitly listed, you may have no sales tax obligation on service revenue. Texas is similar: most services are not taxable there either. But tangible goods? Both states tax those. The real savings in either state come from not paying corporate or individual income tax on your business profit—that’s the structural advantage both offer.
To find your exact combined rate, visit floridarevenue.com or the Texas Comptroller’s site for their respective calculators. County and district surtaxes change, and you need the current figure before you file.
How to file step by step
Filing in Florida starts with understanding that you owe sales tax on transactions in the month they occur. You report and pay monthly via the DR-15 (Sales Tax Return), due by the 20th of the following month. Here’s the process:
Step 1: Gather your sales data. Collect all invoices, receipts, and transaction records for the month. Identify which sales were taxable (tangible goods, and any services listed in Statute 212) and which were exempt. This categorization step is where most errors happen, so be precise.
Step 2: Calculate your taxable sales. Add up all taxable sales for the month. Apply the 6% state rate and your county surtax to that total. The combined rate varies by county—don’t guess. Look it up on floridarevenue.com or use an online calculator.
Step 3: Log into the Florida Department of Revenue portal. Create or access your account on the DR-15 portal. You’ll enter your registration number and access the return form online.
Step 4: Enter your sales figures. The DR-15 has specific lines for gross sales, exempt sales, and taxable sales. Enter the numbers from Step 1 and Step 2. The form calculates the tax owed based on the rate you input.
Step 5: Review and submit. Double-check your entries. A transposition error or a forgotten county surtax line item can throw off the whole return. Submit electronically and make note of the confirmation number.
Step 6: Pay by the deadline. Payment is due by the 20th of the following month. You can pay online, by check, or via electronic funds withdrawal (EFW). Late payments accrue interest and penalties.
Texas works similarly: you file monthly through the Texas Comptroller’s online portal (Comptroller.TexasTaxUs.gov), calculate taxable sales against the 6.25% state rate plus any local district rate for your location, and pay by the 20th of the following month. The form names and terminology differ, but the monthly cycle is the same.
Both states offer step-by-step guidance on their roles and responsibilities through educational resources. If you’re new to sales tax or moving between states, that foundation is worth the time.
Common mistakes
Mistake 1: Forgetting to include the county surtax. Florida’s 6% is just the state portion. If your county has a 0.75% surtax and you file at 6% only, you’ve underpaid. The consequence is a correction notice and interest. The fix: confirm your county surtax rate before you file every return, not once a year. Rates change, and you need the current number.
Mistake 2: Taxing services that aren’t listed in Statute 212. Consulting, bookkeeping, and plumbing labor (in most cases) are not taxable in Florida. If you charge sales tax on them, you’ve overcollected. Your customer may claim back a refund from the state, or you’ll discover the error during an audit. The fix: learn which services your business provides are taxable and which aren’t. The Florida sales tax guide breaks down the common categories.
Mistake 3: Mixing Texas and Florida rates. If you have customers or locations in both states, you can’t use one rate for all sales. Florida sales get the Florida combined rate (6% + county surtax). Texas sales get the Texas rate (6.25% + district surtax). The consequence is over- or under-collection depending on the mix, plus potential audit risk. The fix: track which state each sale occurred in, and apply the correct rate. Use accounting software that ties sales to location or state.
Mistake 4: Missing the monthly deadline. Both states have a monthly filing deadline—Florida by the 20th, Texas by the 20th. Missing it means a late filing penalty plus interest on unpaid tax. The fix: set a calendar reminder on the 15th of every month, not the 20th. That gives you five days to gather data, reconcile, and file.
Frequently Asked Questions
Which state has lower sales tax, Florida or Texas?
It depends on your location and what you sell. Florida’s state rate is 6%, while Texas is 6.25%, but both add local surtaxes. A Florida resident in a county with a 1% surtax pays 7% total. A Texas resident in a district with a 1% surtax pays 7.25%. The headline advantage—no income tax in either state—is more significant than the half-percent difference in sales tax. What matters more for your business is whether you owe sales tax on what you sell.
Do I pay income tax in Florida or Texas if I own a business?
No. Neither state has a corporate income tax or personal income tax on business profit. That’s the structural advantage of both states. You owe federal income tax to the IRS, but Florida and Texas take nothing. This is why many business owners relocate to one or the other.
Are services taxable in Texas the same way they are in Florida?
Mostly yes. Like Florida, Texas does not tax most services. But Texas has a narrower list of taxable services than Florida does, which can sometimes work in your favor if you provide a service that’s taxable in Florida but not in Texas. Review the Texas Comptroller’s guidance for your specific service type before you assume either state’s rules apply.
What if I have sales in both Florida and Texas—do I file two returns?
Yes. You’ll file a Florida return reporting Florida sales, and a Texas return reporting Texas sales. Each is calculated using that state’s rate and rules. The due dates are the same (20th of the following month in both states), but the returns are separate. Consider using accounting software that tracks sales by state automatically.
How often do I need to file sales tax in Florida and Texas?
Monthly, in both states. Returns are due by the 20th of the following month. Some states offer quarterly or annual filing, but Florida and Texas both require monthly filing for most businesses. If your sales are very low, you may qualify for lower-frequency filing—check with each department of revenue—but the default is monthly.
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.
Both Florida and Texas offer real tax advantages for small business owners—no income tax in either state. But the devil is in the sales tax detail: county surtaxes in Florida, district surtaxes in Texas, and different exemption rules for what you sell. The step that saves you money and headache is getting your categorization right from the start—knowing which sales are taxable and which aren’t, and calculating against the correct combined rate for your location. Build that habit into your monthly filing process, confirm your rates before every return, and you’ll stay ahead of corrections and penalties. If you’re managing sales tax across both states, Outsourcing Processing can help you organize and categorize your transaction data so your CPA has a clear, auditable record to work from.