Economic Nexus Threshold

Florida adopted economic nexus effective July 1, 2021, setting the threshold at $100,000 in total Florida sales during the previous calendar year. This is significantly lower than most states, which typically use $100K or $500K thresholds. Florida's low bar means businesses expanding into the state often trigger registration before realizing they've crossed the line.

The $100K threshold applies to all sales delivered to Florida customers, including taxable and nontaxable transactions. Once you exceed the threshold in any calendar year, you must register and begin collecting tax on taxable sales. Florida does not require a separate transaction count—revenue alone determines the obligation.

Physical Presence Creates Immediate Nexus

Florida's physical presence rules predate economic nexus and remain a primary trigger for most businesses with local operations. Any tangible connection to the state—inventory, employees, contractors, or even attendance at Florida trade shows—creates nexus immediately, regardless of sales volume.

Common physical presence triggers include:

• Inventory stored in Florida warehouses, including Amazon FBA, third-party logistics, or drop-shipping arrangements
• Employees or contractors working from Florida, whether full-time, part-time, or remote
• Office space or facilities, including rented offices, coworking memberships, or manufacturing sites
• Trade shows, conferences, or pop-up events where you display goods or take orders
• Installation, repair, or delivery services performed in Florida by your staff or contractors

If you use Amazon FBA and inventory is stored in Florida, you have physical presence. Amazon collects tax on marketplace sales, but direct sales through your own website or other channels require separate registration.

Statewide Rate with Local Surtaxes

Florida charges a 6% state sales tax, with counties adding up to 2% discretionary surtax for a maximum combined rate of 8%. Remote sellers without physical presence collect the state rate only, simplifying compliance. Sellers with physical presence may owe local surtax based on the location of their inventory or business operations.

The Florida Department of Revenue provides a Sales and Use Tax Rate Lookup tool to determine combined rates for specific addresses. For most remote sellers, the flat 6% state rate removes the complexity of tracking local jurisdictions.

Marketplace Facilitator Rules

Florida requires marketplace facilitators to collect and remit sales tax on behalf of sellers once the facilitator's total Florida sales exceed $100K. Platforms like Amazon, eBay, Etsy, and Shopify's managed fulfillment handle collection for transactions processed through their systems.

Sellers operating through multiple channels—marketplace plus direct sales—must track each separately. Marketplace facilitators cover platform transactions, but direct website sales or non-facilitator channels remain the seller's responsibility. If your combined activity exceeds $100K, registration is required even if most revenue flows through a facilitator.

SaaS and Digital Goods Taxability

Florida does not tax most software as a service (SaaS) or remotely accessed cloud software. The state taxes tangible personal property, which Florida defines as items that can be seen, weighed, measured, felt, or touched. Software accessed remotely via login—without a transfer of code—typically escapes sales tax.

However, downloaded software, digital media, and streaming content may be taxable depending on classification. Sellers of digital goods should review Florida Tax Information Publication (TIP) 18A01-12 for specific guidance. Misclassification can create unexpected audit exposure, especially for hybrid products that combine cloud access with downloadable components.

Registration and Filing

Register with the Florida Department of Revenue through the online portal as soon as you meet the economic nexus threshold or establish physical presence. Florida does not require a separate business entity registration before obtaining a sales tax certificate—you can register directly as an out-of-state remote seller.

Most sellers file monthly, quarterly, or annual returns, depending on sales volume. Returns are due by the 1st of the month following the reporting period, with a 10-day grace period if filed electronically. Florida offers electronic payment options and encourages direct debit to avoid late fees.

Florida does not offer a formal voluntary disclosure program with broad penalty relief, so proactive registration before making taxable sales is critical. Retroactive registration after months of unreported activity creates liability, penalties, and interest.

Evidence to Retain

Florida audits can reach back three years, or longer if fraud is suspected. Retain the following documentation to support your nexus determination and sales tax filings:

• Sales records by state showing total Florida revenue and taxable sales
• Marketplace facilitator statements documenting platform-collected tax
• Inventory location logs showing where products were stored and fulfilled
• Exemption certificates for wholesale, resale, or exempt transactions
• Customer invoices and receipts for taxable and nontaxable sales
• Payroll and contractor records identifying Florida-based workers

Keep records for at least three years from the transaction date. Missing documentation during an audit shifts the burden of proof to the seller and can result in estimated tax assessments based on incomplete data.