If you are planning to rent out your property in Florida as a vacation rental, it’s important to know the tax rate that applies. The tax rate for vacation rentals in Florida can vary depending on the location and the type of rental. Here’s what you need to know.
Understanding the Tax Rate for Vacation Rentals in Florida
Florida imposes a state sales tax of 6% on all transactions, including vacation rentals. In addition, many counties and cities in Florida also impose local taxes on vacation rentals. These local taxes can range from 0.5% to 6%, depending on the location.
State Sales Tax
The state sales tax of 6% applies to all transactions, including vacation rentals, in Florida. This means that if you rent out your property as a vacation rental, you will need to collect and remit this tax to the state.
Local Taxes
Local taxes on vacation rentals vary by location in Florida. Many counties and cities impose their own taxes on top of the state sales tax. For example, Miami-Dade County imposes a 6% tourist development tax on top of the state sales tax, while Orange County imposes a 6% resort tax.
How to Collect and Remit Taxes for Vacation Rentals
If you rent out your property as a vacation rental in Florida, you are responsible for collecting and remitting both the state sales tax and any applicable local taxes.
To collect these taxes, you will need to register with the Florida Department of Revenue (DOR) and obtain a sales and use tax certificate. Once registered, you can collect the appropriate taxes from your guests at the time of booking or upon arrival.
You will need to file regular tax returns with the DOR and remit any collected taxes by the due date specified by the department.
Conclusion
In summary, the tax rate for vacation rentals in Florida can vary depending on the location and type of rental. It’s important to know the applicable tax rates and to register with the Florida DOR to collect and remit these taxes properly. By doing so, you can avoid penalties and ensure compliance with state and local tax laws.