Florida's tax nexus rules determine when businesses must register for sales tax, income tax, and employment taxes in the state. Companies incorporated in Florida automatically have nexus and must register upon formation, while out-of-state businesses trigger registration requirements by crossing specific economic thresholds.

Understanding these thresholds matters because crossing them creates immediate compliance obligations and potential penalties for non-registration. Florida uses different triggers for different tax types: economic thresholds for sales tax, physical presence tests for income tax, and employee-based triggers for employment taxes. Each operates independently, so you could owe one type of tax without owing others.

Florida nexus thresholds summary table

This table provides a quick reference for the three primary nexus categories Florida enforces against businesses operating in or selling into the state.

Florida maintains fixed thresholds for sales tax, and the Tax Foundation confirms no changes to the economic nexus threshold or marketplace facilitator rules were enacted in the 2025 Florida legislative session. The state's marketplace facilitator rules exclude facilitated sales from individual seller threshold calculations, simplifying compliance for platform-based businesses.

Florida sales tax nexus requirements

Florida establishes sales tax nexus through two primary methods: economic activity thresholds and physical presence triggers. Once either threshold is crossed, businesses must register and begin collecting Florida sales tax.

Economic nexus thresholds

Florida's economic nexus rule, codified in § 212.0596, F.S., requires remote sellers with more than $100,000 in taxable remote sales delivered to Florida customers during the prior calendar year to register and collect sales tax. As of May 2026, Florida's economic nexus statute does not include a transaction-count threshold; dollar sales volume is the sole trigger. Marketplace-facilitated sales are excluded from a remote seller's own threshold calculation, as marketplace sellers must consider only those sales made outside of a marketplace to determine whether they meet the threshold. The rule took effect July 1, 2021, under Chapter 2021-2, Laws of Florida (Senate Bill 50).

If you meet the Florida economic nexus threshold, your obligation to collect Florida sales tax begins on January 1 following the year your business exceeds the threshold. A single large contract can establish nexus just as easily as many small sales, as confirmed by Freeman Law's analysis of SB 50 at enactment.

Individual sellers who make sales through a marketplace do not include their marketplace sales when calculating their own Florida economic nexus threshold if the marketplace facilitator is already registered and collecting Florida tax on those transactions. Under § 212.05965, F.S., a marketplace seller must consider only those sales made outside of a marketplace to determine whether it made a substantial number of remote sales.

Physical presence nexus

Certain business activities create a physical nexus in Florida, establishing immediate tax obligations regardless of sales volume:

• Owning or leasing physical property in the state

• Having inventory in the state (including third-party warehouses)

• Having employees present in the state, even if not there permanently

• Having affiliates with a presence in the state

• Using independent contractors in the state for sales or installation

• Conducting assembly, installation, service, or repair activities in Florida

Physical presence creates sales tax nexus instantly, making the $100,000 economic threshold irrelevant for businesses with any Florida footprint. Under § 212.18(3)(a), F.S., persons engaged in business as dealers in Florida must register with the Department of Revenue before engaging in business activity.

Registration and compliance obligations

FDOR guidance recommends applying for registration at least 3 to 5 business days before you need to start collecting tax. Registration occurs through the FDOR portal, where businesses must collect the state sales tax (6%) plus any applicable local discretionary surtax. According to FDOR's surtax brochure, county surtax rates range from 0.5% to 2.5%, and the discretionary surtax applies only to the first $5,000 of the sales price per item of tangible personal property.

Florida assigns filing frequency based on annual tax collected: monthly for businesses collecting more than $1,000 annually, quarterly for $501 to $1,000, semiannual for $101 to $500, and annual for $100 or less. New businesses generally default to quarterly filing, although FDOR may adjust frequency based on account history. According to FDOR's business guide, returns are due on the 1st of the month following each reporting period and are late after the 20th of that month. A late filing penalty of 10% of tax owed applies, with a minimum of $50 even when no tax is due.

Florida income tax nexus requirements

Florida imposes a 5.5% corporate income tax on corporations conducting business within the state. Unlike sales tax, Florida uses traditional nexus standards based on physical presence and business activities rather than economic thresholds. The 5.5% rate applies to taxable years beginning on or after January 1, 2022, as confirmed on the current Form F-1120 and FDOR's tax and interest rates page.

Income tax nexus triggers

Florida's corporate income tax is imposed on corporations for the privilege of conducting business, deriving income, or existing within Florida, under Chapter 220, F.S. The chapter's imposition framework (including § 220.02 and related provisions) reaches corporations engaged in any qualifying business activity in the state. There are no economic thresholds; physical presence or business activity in Florida can establish filing obligations.

Activities that create income tax nexus include:

• Owning, renting, or leasing any property in Florida

• Maintaining employees, agents, or representatives conducting business activities

• Storing inventory through third-party warehouses

• Delivering goods using company-owned vehicles

• Providing services within Florida

• Maintaining a registered agent or office in Florida

• Any systematic business activities creating a substantial economic presence

Pass-through entities like S-corporations and LLCs taxed as partnerships generally avoid Florida corporate income tax, benefiting from Florida's lack of personal income tax.

Public Law 86-272 protection

Federal Public Law 86-272 protects some businesses from Florida corporate income tax even if they have physical presence. This protection applies only to soliciting orders for tangible personal property that are approved and shipped from outside Florida. The protection disappears when employees provide services, handle inventory, or perform activities beyond pure sales solicitation.

Florida has not formally adopted the 2021 Multistate Tax Commission revised statement on internet-based activities, as confirmed by MTC adoption tracking. Florida's existing Rule 12C-1.0511, F.A.C. uses the pre-2021 solicitation standard. However, the FDOR has historically taken an aggressive position on what constitutes unprotected activity. In TAA 10C1-009, the FDOR ruled that an employee performing online administrative duties from a Florida home defeated P.L. 86-272 protection. Businesses with Florida-based remote employees or interactive website activities directed at Florida customers should treat P.L. 86-272 protection as legally uncertain rather than settled.

Filing and compliance requirements

Once nexus is established, corporations must file Form F-1120 annually by May 1 for calendar-year filers (the deadline tracks the federal corporate return due date under § 220.222, F.S.; confirm against current FDOR instructions each year). Florida imposes a flat 5.5% rate with a $50,000 exemption available to qualifying corporations under § 220.14, F.S. Members of a controlled group (as defined in IRC § 1563) share a single $50,000 exemption. Estimated quarterly payments are required for businesses expecting to owe more than $2,500 annually, with installments due on the schedule published in current F-1120 instructions.

Florida employment tax nexus

Employment tax nexus in Florida is straightforward: hiring any employee who performs work physically within the state creates tax obligations, regardless of revenue or other activity levels.

Any employee working from a Florida location, whether full-time staff, part-timers, seasonal workers, or remote hires, establishes employment tax nexus. Temporary assignments count as well; a sales representative spending time in Florida can trigger withholding requirements for wages earned during that work period.

Registration requirements

Employers must register with the FDOR for reemployment tax and comply with federal payroll obligations. Florida has no personal income tax, and therefore no state income tax withholding requirement.

Employers must register for Florida Reemployment Tax when paying $1,500 or more in wages during any calendar quarter, or when employing one or more workers for any portion of a day during any 20 different weeks in a calendar year. The 20 weeks need not be consecutive. Registration is due by the end of the month following the calendar quarter in which liability begins. The tax applies to the first $7,000 of wages per employee per calendar year. According to the Florida Department of Commerce, the minimum reemployment tax rate of 0.1% has remained at its lowest possible level for eleven consecutive years as of 2026. New employers pay an initial rate of 2.7% for their first 10 quarters of reporting, after which an experience-based rate is calculated.

New hire reporting is required within 20 days of hiring under § 409.2576, F.S. Florida also requires businesses to report independent contractors paid $600 or more in a calendar year within 20 days of the contract start date or the date of first payment, whichever is earlier. Workers' compensation requirements vary by industry and employee count.

2025 to 2026 Florida tax law changes

Several notable tax changes took effect following the 2025 legislative session. The most significant structural change is the full repeal of Florida's sales tax on commercial real property leases (the Business Rent Tax), effective October 1, 2025. According to Holland & Knight's analysis, Florida was the only U.S. state imposing this tax, and HB 7031 eliminated it entirely, including local government authority to impose its own levy on commercial leases.

HB 7031 also updates Florida's conformity date with the Internal Revenue Code to January 1, 2025, creates a permanent August back-to-school sales tax holiday, and introduces several targeted sales tax exemptions. Florida's R&D Tax Credit cap remains at $9 million annually under § 220.196, F.S.; legislation proposing an increase to $50 million was introduced in the 2025 session but did not become law. According to Florida TaxWatch, the session also considered the RISE Investment Tax Credit to increase venture capital investment in the state. The corporate income tax rate (5.5%) and $50,000 exemption remain unchanged.

Compliance obligations once nexus is established

Once any Florida nexus threshold is crossed, immediate registration and ongoing compliance become mandatory, with penalties and interest accruing from the date nexus was established. Crossing a tax nexus threshold can also signal that a business is "transacting business" in Florida for purposes of foreign registration with the Secretary of State, although Florida does not publish a specific tax-based threshold for that determination. If your tax nexus analysis confirms SOS registration is also required, Discern handles the foreign registration process across all 51 jurisdictions, so your team can focus on the compliance determination rather than the filing mechanics.

Tax registration timeline

• Sales tax: Register immediately upon crossing thresholds or before the first taxable sale if physical presence exists. Economic nexus obligations begin January 1 following the threshold year.

• Income tax: Registration required with the first return filing after nexus is established through physical presence or business activities.

• Employment tax: Registration must occur by the end of the month following the calendar quarter in which liability begins.

Penalty and interest considerations

Florida imposes penalties for late registration and non-compliance. For corporate income tax, § 220.801, F.S. provides for a late filing penalty of 10% of unpaid tax per month, up to a maximum of 50% of unpaid tax. When no tax is due, a $50 per month penalty applies, capped at $300. Interest accrues at a floating rate updated semiannually on January 1 and July 1, tied to the federal underpayment rate formula, and the Department of Revenue can assess back taxes for periods when nexus existed but registration was not in place.

The state offers a voluntary disclosure program that waives all penalties and limits the lookback period to 3 years (36 months) from the postmark date of the request. Interest is not waived. Eligibility requires that the taxpayer has not been previously contacted by the FDOR about the liability. The MTC's lookback period chart confirms this 3-year window. Without a VDA, the FDOR can examine periods well beyond 3 years. Proactive disclosure is a meaningful risk reduction tool for businesses that have established nexus without registering.

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Frequently asked questions about Florida tax nexus

Below are answers to common questions businesses ask when evaluating their Florida tax registration obligations.

Does selling through a marketplace like Amazon create Florida sales tax nexus for individual sellers?

If the marketplace facilitator is registered and collecting Florida sales tax on your transactions, those facilitated sales are excluded from your own $100,000 economic nexus threshold calculation under § 212.0596, F.S. You only count sales made outside of a marketplace when determining whether you have met the threshold. However, if you store inventory in a Florida fulfillment warehouse (such as Amazon FBA), the physical presence of that inventory creates sales tax nexus independently, regardless of your sales volume.

Does Florida tax SaaS and digital products?

Under current FDOR guidance, including TAA 16A-014, SaaS subscriptions and cloud computing services delivered through remote access (without transferring tangible property) are generally not treated as taxable under the facts addressed in agency guidance. Electronically delivered digital goods such as e-books, music, and movies have also generally been treated as non-taxable in published guidance.

However, prewritten software delivered via download or physical media is taxable. Because this guidance is fact-specific and FDOR's position can vary by transaction structure, businesses with material Florida revenue from digital products should consider requesting a Technical Assistance Advisement for binding guidance specific to their delivery model, and should consult tax counsel before excluding digital revenue from nexus calculations.

What is Florida's voluntary disclosure program, and when should a business use it?

Florida's voluntary disclosure program under § 213.21(7), F.S. allows businesses that have established nexus without registering to come forward and limit their exposure. The program waives all penalties and limits the lookback period to 36 months. Interest is still owed. The key eligibility requirement is that the FDOR must not have previously contacted the business about the liability. Businesses should act before receiving any nexus inquiry from the state.

Are there any recent changes to Florida's tax nexus rules?

The $100,000 economic nexus threshold and marketplace facilitator rules remain unchanged for 2025 to 2026. The most significant recent change is the full repeal of the Business Rent Tax on commercial real property leases, effective October 1, 2025. The corporate income tax rate (5.5%) and $50,000 exemption also remain unchanged. Under HB 7031, Florida updated its Internal Revenue Code conformity date to January 1, 2025.

When does economic nexus differ from physical presence for Florida sales tax?

Economic nexus is triggered solely by exceeding $100,000 in taxable remote sales to Florida customers in the prior calendar year, with no transaction count test. Physical presence triggers nexus immediately and regardless of sales volume; activities like leasing property, storing inventory, or having employees in Florida create a registration obligation before the first taxable sale. When both apply, physical presence governs the earlier registration deadline.

Does a remote employee working from Florida defeat P.L. 86-272 protection?

In TAA 10C1-009, the FDOR concluded that administrative work performed from a Florida home defeated P.L. 86-272 protection. Florida has not adopted the 2021 MTC revised statement on internet activities, but the FDOR has historically taken an aggressive position on what counts as unprotected activity. Businesses with Florida-based remote employees should treat P.L. 86-272 protection as legally uncertain and consult counsel before relying on the federal shield.