What is Exempt from Sales Tax in Florida?

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With nearly 19 million residents, Florida is considered to be the third biggest U.S. state by population, and one of the most glamorous ones. Every year, more and more business owners decide to integrate in Florida and launch their business there. Let’s try to understand all pros and cons of running a business in Florida, by figuring out which types of products are tax exempt in this state.

What is Exempt from Sales Tax in Florida

First off, let’s make things easy by stating that the state sales tax in Florida is 6%, while the state has no income tax. That being said, just like any other state, there are specific organizations and products in Florida that are tax exempt. In this Prestige Auditors article, we’ll be focusing on the products.

Healthcare Industry

A number of products which belong to the healthcare industry, are tax free in the state of Florida. These are:

  • Hypodermic needles and syringes
  • Medical gases
  • Prescription drugs
  • Chemical compounds
  • Test kits

Manufacturing Industry

If you want to operate in the manufacturing industry, then Florida is going to be the best place. There are lots of exemptions in the category of manufacturing products. Generally, this category of products includes:

  • Repair Parts
  • Several types of utilities, such as gas or electricity
  • Equipment for moving and loading material, which are used during production
  • Labor, provided that physical products aren’t moved during the process
  • Base materials Machinery that has just been purchased


Certain types of software purchases are tax exempt in Florida, including:

  • Software purchased at stores
  • Custom software designed for specific needs
  • Modifications of canned software

There are also several categories of products which are tax exempt in Florida, such as:

  • Food and Meals
  • Groceries

Even if groceries are considered to be tax exempt in Florida, there are several types of products such as candies and sodas which are not considered to be part of the grocery category, and are thus not tax exempt. Also keep in mind that groceries often include food that is not prepared. Any food that is prepared before in a restaurant will be subjected to tax rates specifically designed for restaurant food.

On top of that, the following categories are also exempt from taxes in the state of Florida:

  • Accessories bought to be utilized during services under specific contracts
  • Services related to transportation
  • Common remedies for illnesses used in everyday life
  • Fertilizers and seeds
  • Cosmetic products

While all of these products are tax exempt in Florida, there are always exceptions to the rule and businesses sometimes get confused. For example, clothing is NOT tax exempt in Florida, but is taxed lower than regular items, at 6%.

If you’ve decided that the time to start a business in Florida is now, we at Prestige Auditors can help you not just with the formation part of your business, but also tax exemption documents which will make sure you aren’t hit with extra taxes and heavy state fines. And we do this for every state! We also help businesses with a myriad of other services, for example doing a business entity search Michigan, or any type or service! Grab that phone and give us a call now!

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