Rental Property Taxes in Florida (2026 Guide)

1. No State Income Tax on Rental Income

Florida's constitution prohibits a state personal income tax. This means all rental income from Florida properties is subject only to federal income tax — no state Schedule E equivalent, no state passive loss tracking, no state-level conformity headaches.

For landlords relocating from high-tax states, this is transformational. A landlord with $100,000 in net rental income saves $5,000-$13,000 annually compared to California or New York, just by virtue of Florida's tax structure.

2. Documentary Stamp Tax

Florida imposes a documentary stamp tax ("doc stamps") on property transfers and mortgage documents. This is a significant upfront cost when acquiring rental properties:

• Deed transfers — $0.70 per $100 of consideration (statewide). In Miami-Dade County, the rate is $0.60 per $100 plus a $0.45 surtax
• Mortgages/notes — $0.35 per $100 of the loan amount
• Example — purchasing a $500,000 rental with a $400,000 mortgage: $3,500 in deed stamps + $1,400 in mortgage stamps = $4,900 total

Tax treatment: Documentary stamp tax on the deed is added to your cost basis (increasing future depreciation). Documentary stamp tax on the mortgage is an acquisition cost, also added to basis. Neither is deductible as a current expense.

3. Intangible Tax on Mortgages

In addition to doc stamps, Florida charges a nonrecurring intangible tax of $0.20 per $100 (0.2%) on new mortgage obligations. For a $400,000 mortgage, this is $800 due at closing.

This applies to:

• New purchase money mortgages
• Refinances (on the new loan amount, with credit for existing recorded mortgage if with same lender)
• Home equity lines of credit (on the maximum credit line amount)

Like doc stamps, intangible tax is added to your cost basis and recovered through depreciation — it is not a current-year deduction.

4. Homestead Protection and Save Our Homes

Florida's homestead exemption provides up to $50,000 in assessed value reduction for primary residences, plus the "Save Our Homes" cap limiting annual assessment increases to 3% or CPI (whichever is lower).

For rental properties, these benefits do NOT apply:

• Non-homestead properties face a 10% annual assessment cap (not 3%)
• No $50,000 exemption on rental properties
• Converting your homestead to a rental removes all protections immediately
• However, Florida's property tax rates (0.8-1.2% effective) are still well below Texas and many northeastern states

5. Florida LLC Annual Report ($138.75)

Florida LLCs must file an annual report with the Division of Corporations by May 1 each year. The cost is straightforward:

• Annual report fee — $138.75 (LLC) or $150 (corporation)
• Late fee — $400 penalty if filed after May 1
• Administrative dissolution — if you miss the deadline entirely, the state will dissolve your LLC (can be reinstated for $600)
• No franchise tax — unlike California ($800) or Texas (margin tax), Florida charges only the flat annual report fee

The $138.75 annual report fee is deductible as a business expense on Schedule E Line 17 (Other). This is one of the lowest LLC maintenance costs in the country, making Florida an attractive state for entity formation.

6. Sales Tax on Commercial Rent

Florida is one of the only states that imposes sales tax on commercial real property rentals. If you rent commercial space (office, retail, warehouse, industrial), you must collect and remit sales tax on the rent.

2026 rates:

• State rate — 2.0% (reduced from 4.5% through a series of annual reductions; was 5.5% in 2023)
• County surtax — varies by county (0.5% – 1.5%), making total 2.5% – 3.5%
• Residential exemption — residential rentals (apartments, houses, condos) are EXEMPT from sales tax
• Short-term rentals — stays under 6 months are subject to transient rental tax (6% state + county tourist tax of 2-6%)

7. Insurance and Hurricane Costs

Florida landlords face the highest property insurance costs in the nation — averaging $4,000-$8,000/year for a single-family rental, with coastal properties exceeding $10,000-$15,000. All insurance premiums are fully deductible on Schedule E Line 9.

• Wind/hurricane coverage — often a separate policy from Citizens (state insurer of last resort) or private carriers
• Flood insurance — required in FEMA flood zones; $1,500-$5,000/year depending on elevation and zone
• Hurricane deductibles — typically 2-5% of dwelling coverage (on a $400K property, that's $8,000-$20,000 out of pocket per event)
• Roof age — many insurers won't cover roofs over 15 years old; roof replacement ($15,000-$30,000) is capitalized and depreciated

Hurricane damage repairs are generally deductible as current expenses (if restoring to prior condition) minus any insurance reimbursement. Improvements made during repair (upgrading to impact windows, for example) must be capitalized.

8. How SheltrIQ Helps FL Landlords

SheltrIQ handles the Florida-specific nuances of rental property taxation:

• Doc stamp and intangible tax basis tracking — automatically adds closing costs to your property basis for accurate depreciation calculations
• Insurance premium categorization — separates wind, flood, and liability premiums for clean Schedule E reporting
• Annual report deadline alerts — reminds you of the May 1 Florida LLC filing deadline before the $400 late penalty hits
• Short-term rental tax tracking — if you do Airbnb/VRBO, tracks transient rental tax obligations and platform remittances
• Hurricane repair vs. improvement classification — AI classifies storm damage repairs (current deduction) vs. improvements (capitalize and depreciate)