Key Takeaways

  • Florida has a flat corporate income tax rate of 5.5%.
  • Corporations operating in or earning income from Florida must file a corporate income tax return, even if no tax is owed.
  • Florida offers a short-form tax return (F-1120A) for eligible small corporations.
  • Certain businesses (like sole proprietors and S corporations) are exempt from Florida corporate tax.
  • Florida’s lack of personal income tax makes corporate tax a crucial revenue source.
  • Businesses may also be subject to other state taxes, including sales and property taxes.
  • Florida offers online services for extensions, estimated payments, and corporate return filing.
  • Penalties and interest may apply for late filings or payments.
  • Businesses can claim credits for estimated tax payments and tentative payments—but not much more.

Florida Corporate Tax is specified at a set rate of 5.5 percent on all income and it is important to remember that any corporation must also complete and return an appropriate tax return, even if they owe zero tax.

What Is Florida Corporate Income Tax

The state of Florida does not impose a personal income tax on residents, but certain businesses are not exempt from tax. Corporate income tax is charged at a rate of 5.5 percent on all incorporated businesses that are in operation within Florida. This corporate income tax applies not only to a business that is physically based in Florida but to any businesses that are registered outside the state, but that may still earn money in the state.

Any corporation that is registered in Florida must complete a corporate tax return, even if they are not liable to pay any tax, but certain types of business, as well as individuals, do not necessarily have to complete a tax return, particularly if they are not incorporated. The following are excluded from completing returns:

  • Sole Proprietors
  • Individuals
  • S Corporations (may have to pay tax at a federal level, however)

Who Must File a Florida Corporate Income Tax Return?

All corporations doing business, earning income, or existing in Florida must file a Florida Corporate Income/Franchise Tax Return (Form F-1120), regardless of whether they owe tax. This includes corporations based outside Florida that have income derived from business activities within the state.

However, the following types of entities are generally not required to file:

  • Sole proprietorships
  • General partnerships
  • Limited liability companies (LLCs) that are taxed as partnerships
  • S corporations (though federal taxes may still apply)
  • Non-profit organizations that are tax-exempt under Section 501(c)(3) of the Internal Revenue Code

It’s important for businesses operating in multiple states to ensure they determine Florida nexus correctly—i.e., whether their in-state business activity is sufficient to require filing.

Florida Taxes — a Quick Look

As Florida does not tax individuals on their personal income, corporate tax is an important source of income for the state. As already stated, businesses run as corporations are compelled by law to complete a tax return to pay the corporate tax on business income, but individuals and corporations both need to be aware that other taxes are collected by the state, too.

These taxes include, but are not limited to:

  • Sales tax of 6 percent levied on purchases across the state
  • Property tax is calculated on the first of January each year and based on the current market value

Common Florida Business Tax Deadlines and Penalties

Florida corporate income tax returns are due on the first day of the fourth month following the close of the corporation's fiscal year. For calendar-year corporations, this means an April 1 deadline.

If a corporation cannot meet the filing deadline, it can file Form F-7004 for an automatic 6-month extension. However, an extension to file is not an extension to pay. Any tax owed must be paid by the original due date to avoid penalties and interest.

Penalties include:

  • Late Filing Penalty: 10% per month (up to 50%) of the tax due.
  • Underpayment Penalty: If estimated payments are insufficient, interest may accrue.
  • Interest: Charged on unpaid tax from the original due date until payment is made in full. Current interest rates are published quarterly by the Florida Department of Revenue.

What Is Florida Corporate Income Tax (CIT) Internet Site?

The Florida state government use the CIT website to enable the fast and efficient filing of corporate income tax returns. There are several different tax returns which can be processed online and it's possible to make online payments, too:

The F-1120, Florida Corporate Long Form Income Tax Return can be processed and paid online, however, specialized software must be used. This can be obtained through the Internal Revenue Service.

Available Online Filing and Payment Options

Florida offers businesses a secure online portal via the Department of Revenue’s e-Services system, where corporations can:

  • File F-1120A and F-7004
  • Pay corporate income taxes
  • View payment history and balances
  • Schedule payments in advance

For the F-1120 (Long Form), corporations must use approved third-party software providers that are compatible with the Florida Department of Revenue’s electronic filing system. A list of certified providers is available on the Florida Revenue site.

Corporations must also ensure timely electronic payments if their tax liability exceeds $20,000 for any fiscal year.

How a Corporation Can Qualify to File for Florida Corporate Short Form Income Tax Return (F-1120a)

For small corporations that conduct all of their business within Florida, it's possible to file the F-1120A, The Florida Corporate Short Form Income Tax Return, online. There are, however, certain requirements that must be met.

To qualify for this, businesses need to provide their corporate name, registration numbers, proven address, and contact number in Florida. They also need to provide corporate income tax records from previous years and federal income tax records, in addition to their registered company bank details.

Corporations will also need to prove the following:

  • They only do business in Florida, not in any other state
  • Net income is no more than $45,000
  • The corporation has not already filed or been included any other tax returns
  • They do not pay federal Alternative Minimum Tax
  • They have no tax credits, with the exception of Tentative Tax Payments or Estimated Tax Payments

Key Considerations for F-1120A Filing

Filing the short-form return (F-1120A) can reduce the administrative burden for small corporations operating exclusively in Florida. However, corporations should review the following before selecting the short form:

  • No federal alternative minimum tax (AMT) or complex tax credits should be involved.
  • If the corporation has recently changed its fiscal year or structure, it may not be eligible.
  • Using F-1120A means accepting that no detailed tax schedules or adjustments are filed, which can limit audit defense later.

The $45,000 net income cap is strict, and corporations close to the threshold should evaluate if they might exceed it with adjustments or credits.

How High is Corporate Income Tax Rate in Your State?

Florida's corporate tax rate of 5.5 percent is very comparable to rates in other states. The state of Arkansas charges corporation tax on income that exceeds $100,000. They take 5.4 percent on the first $100,000 and 6.5 percent on anything over $100,000.

The tax rate in Arkansas also involves a large surtax though, which can increase corporate tax to a much larger 8.25 percent. Surtax is applied only to corporations that earn $100 million or more.

Other states, including Washington, do not charge corporate tax on income, but have a different system, known as "gross receipts tax". Some states have gross receipts tax, which is charged on top of corporate income tax.

Taxes vary from state to state, of course, and businesses across the country will find themselves subject to different taxes. In Florida, with a flat rate of corporate income tax, it's easy to calculate and then file your corporate returns.

How Florida’s Corporate Tax Rate Compares Nationally

At 5.5%, Florida's corporate tax rate is moderate compared to other states. Here's how it stacks up:

  • Lower than California (8.84%), Illinois (9.5%), and New Jersey (11.5%)
  • Higher than North Carolina (2.5%) and states like Nevada, Texas, and Washington that impose no traditional corporate income tax (though gross receipts taxes may apply)
  • Florida does not impose corporate franchise tax, which is an additional cost in states like Louisiana and Mississippi.

Businesses benefit from Florida’s flat rate structure, simplifying tax calculations. Moreover, the absence of personal income tax makes Florida attractive to pass-through entities like LLCs and S corporations.

Florida Business Tax Credits and Incentives

While Florida offers fewer general corporate tax credits than some other states, a few incentives may apply:

  • Florida Qualified Target Industry (QTI) Tax Refund: For businesses in targeted high-value industries creating jobs in Florida.
  • Capital Investment Tax Credit (CITC): For companies in sectors like manufacturing or clean energy investing significant capital.
  • Research and Development Tax Credit: Available to certain corporate taxpayers engaged in qualified research.

Note that most small businesses will not qualify for these credits, and eligibility often involves a complex application process and job creation requirements.

Frequently Asked Questions

1. What is the current Florida corporate tax rate in 2024?

The Florida corporate tax rate is a flat 5.5% on federal taxable income adjusted for Florida-specific rules.

2. Do I have to file a corporate tax return in Florida if I made no profit?

Yes. All corporations doing business in Florida must file a corporate income tax return, even if they owe no tax.

3. What’s the difference between Form F-1120 and F-1120A?

F-1120 is the standard corporate income tax return. F-1120A is a simplified short-form return available only to eligible small businesses that operate solely in Florida.

4. How do I file a Florida corporate tax extension?

You can file Form F-7004 through the Florida Department of Revenue’s online portal to receive a six-month extension to file your return. This does not extend your payment deadline.

5. What happens if I pay Florida corporate tax late?

You may incur penalties and interest. Penalties can reach up to 50% of the tax owed, and interest accrues from the original due date.

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