Florida is known for low taxes, particularly because it has no state income tax. This policy is a driver of the state’s economic growth—it attracts businesses, retirees, and high-income individuals looking for a tax-friendly home.

Florida’s 6% sales tax rate places most of the tax burden on what people buy rather than what they earn. Below, we’ll discuss Florida’s grocery tax, the term for sales tax added to groceries, meals, and beverages. Here’s what businesses and customers in Florida should know.

What’s in this article?

• How sales tax works in Florida
  
• Exemptions to Florida sales tax
  
• Sales tax holidays in Florida
  
• How groceries are taxed in Florida
  
• How meals are taxed in Florida
  
• How beverages are taxed in Florida
  

How sales tax works in Florida

With no state income tax, Florida’s tax system relies heavily on the consumption-based sales tax to generate revenue for state and local governments. Florida imposes a base sales tax rate of 6% on most goods and services, but counties can add surtaxes, usually 1% more on average. The total sales tax you pay will vary depending on where you are in the state.

Typically, tax is collected at the point of sale: when you purchase something, the sales tax is added to the price of the item. If the goods are discounted, the sales tax is calculated on the discounted amount. Certain items are exempt from sales tax, such as prescription drugs and some medical supplies. When items are sold as part of a combination package, such as a gift basket that includes taxable and nontaxable items, the tax treatment can depend on the contents and their proportion of the total value. There are rules for other categories such as clothing, in which some exemptions and tax holidays apply.

Exemptions to Florida sales tax

Though Florida’s tax structure leans strongly on sales taxes, the state offers exemptions. These include:

• Groceries: Most food items intended for home consumption are exempt from sales tax. This includes fresh produce, meat, dairy, bread, and canned goods. Prepared hot foods and soft drinks are subject to sales tax.

• Prescription drugs: Medications prescribed by a licensed healthcare professional and filled by a pharmacy are exempt from sales tax. This includes medications for humans and animals.

• Certain medical supplies: Medical supplies such as bandages, crutches, wheelchairs, hearing aids, and diabetic testing supplies are exempt from sales tax.

• Electricity: Though electricity itself is taxed, certain energy-saving appliances such as Energy Star-certified refrigerators, washing machines, and water heaters are exempt during specified sales tax holidays.

• Agricultural products: Seeds, fertilizers, pesticides, and livestock feed are exempt from sales tax.

• Educational materials: Textbooks and other instructional materials that educational institutions purchase for students are typically exempt.

• Manufacturing equipment: Machinery, equipment, and tools used directly in manufacturing processes are often exempt.

• Baby and toddler products: Essential items for young children, including diapers, baby food, and clothes, are exempt.

• Feminine hygiene products: Tampons, pads, menstrual cups, and liners are exempt from sales tax.

Sales tax holidays in Florida

Florida has several sales tax holidays throughout the year that are designed to provide tax relief on specific items during designated periods. The Florida Department of Revenue provides a detailed calendar of sales tax holidays on its website with specific dates, eligible items, and any restrictions that might apply. Here are a few examples:

Back to School Sales Tax Holiday

This holiday usually occurs in late July or early August, just before the school year begins. During this period, certain school supplies, clothing, footwear, and personal computers are exempt from sales tax. The exemption typically applies to:

• Clothing, footwear, and accessories selling for $100 and under per item

• School supplies selling for $50 and under per item

• Personal computers and related accessories selling for $1,500 and under per item

Disaster Preparedness Sales Tax Holiday

Typically held in May or June (just before hurricane season starts), this holiday encourages residents to prepare for emergencies by making supplies tax-free. The exemption typically applies to:

• Batteries

• Portable generators

• Tarps and other weather-related supplies

• Reusable ice packs

• Flashlights and lanterns

Freedom Month Sales Tax Holiday

This holiday, which is usually scheduled around the Fourth of July, offers tax exemptions on recreation items to encourage outdoor and leisure activities. Exempt items typically include:

• Boating and water activity supplies

• Camping gear

• Grilling equipment

• Concert tickets, museum visits, state park visits, and other recreational activities

How groceries are taxed in Florida

In Florida, most groceries are exempt from sales tax, making it one of the more tax-friendly states for grocery shopping. This exemption covers a wide range of items you’d typically buy to stock your home fridge. Here’s a breakdown of how groceries are taxed in Florida:

Tax-exempt grocery items

These items are typically exempt from sales tax:

• Staple foods: These include basic food items such as bread, milk, cheese, eggs, fruits, vegetables, meat, poultry, fish, and grains.

• Unprepared foods: Items that are not prepared or intended for immediate consumption are typically exempt. This includes raw ingredients such as flour, sugar, spices, and baking supplies.

• Canned and packaged foods: Most canned goods, packaged foods, and frozen foods that require preparation are also tax-exempt. This includes canned vegetables, soups, frozen meats, and packaged snacks.

• Noncarbonated beverages: Beverages such as bottled water, fruit juices, and noncarbonated drinks are exempt from sales tax. This exemption does not extend to alcoholic beverages or soft drinks.

Taxable grocery items

Certain grocery items do not qualify as exempt and are subject to sales tax. These include:

• Prepared foods: Foods that are prepared and intended for immediate consumption are taxable. This includes items purchased from deli counters, bakery items that are ready to eat, and hot foods. For example, a sandwich made by a grocery store’s deli is taxable.

• Soft drinks and carbonated beverages: These items are subject to sales tax. This category includes sodas, sparkling water, and energy drinks.

• Candy and confections: Candy, chocolates, and other confectionery items are usually taxable because they are considered nonessential luxury items.

How meals are taxed in Florida

In Florida, meals are typically subject to sales tax, with a few exceptions depending on the type of meal and the establishment where it’s purchased. Here’s a look at how meals are taxed:

Taxable meals

• Restaurant meals: Meals consumed at restaurants, cafes, diners, and other similar establishments are subject to sales tax, regardless of whether you dine in, take out, or have the meal delivered. This includes the cost of the food itself, any beverages, and any additional charges such as gratuity.

• Prepared foods: Ready-to-eat meals from grocery stores, delis, food trucks, and other vendors are subject to sales tax. This includes hot meals, sandwiches, salads, and other prepared items intended for immediate consumption.

• Catered events: The meals that catering services prepare for events such as weddings, parties, or corporate functions are typically subject to sales tax.

Nontaxable meals

• Bakery items: Baked goods purchased from bakeries without space to eat are exempt from sales tax. However, if the bakery has a designated area for on-site consumption, the baked goods are taxable.

• Grocery store prepared foods: Though most prepared foods are taxable, there’s an exception for food prepared off the seller’s premises and sold in the original sealed container. This means that prepackaged salads, sandwiches, and other grab-and-go meals from the refrigerated section are likely exempt.

• Food sold at events with admission fees: Food sold at events where an admission fee is charged (e.g., concerts, fairs, festivals) might be subject to different tax rules depending on the event and vendor.

How beverages are taxed in Florida

In Florida, the way beverages are taxed varies based on the type of beverage and where it’s purchased. One factor is the distinction between prepared and unprepared beverages: beverages made and sold for immediate consumption (such as those from a coffee shop) are subject to tax, whereas unprepared beverages purchased from a grocery store for home consumption are often exempt. Here’s how beverages are taxed in the state:

Taxable beverages

• Soft drinks and carbonated beverages: Sodas, soft drinks, and sparkling water are subject to sales tax. This includes all carbonated beverages purchased individually or in bulk.

• Alcoholic beverages: All alcoholic beverages are subject to sales tax, whether they’re purchased at a retail store, bar, or restaurant.

• Prepared beverages: Prepared beverages such as coffee, tea, juices, smoothies, and specialty drinks from cafes and restaurants are taxable.

Exempt beverages

• Noncarbonated water: Noncarbonated bottled water is typically exempt from sales tax. This includes plain bottled water and some enhanced waters that are noncarbonated.

• Unprepared and certain packaged beverages: Milk, milk products, and plant-based milk alternatives are exempt from sales tax, as are 100% fruit and vegetable juices and unprepared coffee or tea (e.g., tea bags, coffee grounds) purchased from grocery stores.