Understanding Florida sales tax exemptions saves e-commerce businesses money and reduces compliance risks. While Florida’s 6% state sales tax rate applies to most purchases, dozens of categories qualify for exemptions from groceries and prescription drugs to manufacturing equipment and newly permanent disaster preparedness items.
For online sellers managing multi-state compliance, knowing what’s exempt in Florida isn’t optional. Incorrectly charging tax on exempt items damages customer relationships. Missing taxable items triggers audits.
Hands Off Sales Tax (HOST) helps businesses navigate Florida’s exemption landscape through comprehensive sales tax registration and ongoing compliance management. We handle the complexity so you can focus on growth.
How Florida Sales Tax Works
Florida imposes a 6% statewide sales tax on most retail sales, rentals, admissions, and certain services. Counties add discretionary surtaxes ranging from 0.5% to 1.5%, bringing combined rates to 7.5% in counties with the highest surtax.
Important surtax cap: County surtax applies only to the first $5,000 of any single item of tangible personal property. A $40,000 car in a county with 1% surtax pays 7% on the first $5,000 ($350) and 6% on the remaining $35,000 ($2,100). Total tax $2,450. This cap doesn’t apply to services, admissions, or rentals.
Gadsden County and Leon County impose the highest county surtax at 1.5%, while counties like Citrus charge no additional local tax.
Florida operates as a destination-based sales tax state. Businesses charge the rate where customers receive products. For e-commerce sellers, this means tracking county-level rates across all 67 Florida counties.
Economic nexus triggers at $100,000 in annual sales delivered into Florida. Once you cross this threshold, you must register, collect, and remit Florida sales tax.
Major Florida Sales Tax Exemptions
Groceries and Food Products
Florida exempts most food products intended for home consumption from sales tax. Fresh produce, meat, dairy, bread, cereals, canned and frozen foods, cooking oils, and non-carbonated beverages all qualify.
What’s taxable: Soft drinks and carbonated beverages face sales tax. Any beverage labeled with “ade,” “beverage,” “cocktail,” “drink,” or “flavored” is taxable. Candy and confections are taxable as non-essential items.
Prepared foods sold for immediate consumption are taxable: restaurant meals, deli sandwiches, hot foods from grocery stores. One exception: bakeries without eating facilities sell even prepared items tax-free.
Prescription Drugs and Medical Items
Florida exempts prescription medications dispensed by licensed practitioners, including medications for animals prescribed by veterinarians.
Permanently exempt medical items without prescription include electric and manual toothbrushes, toothpaste, dental floss, oral irrigators, mouthwash, hypodermic needles, and syringes.
Medical devices labeled for single-patient use by prescription are exempt: prosthetic appliances, orthopedic devices, wheelchairs. Over-the-counter medications, cosmetics, and personal hygiene products remain taxable unless specifically listed on Florida’s Nontaxable Medical Items list.
Manufacturing and Industrial Exemptions
Florida offers generous exemptions to manufacturers to encourage production:
Machinery & Equipment: New or expanding businesses can purchase industrial machinery and equipment tax-free when used at a fixed Florida location to manufacture, process, or produce items for sale. Repair parts and labor for this equipment also qualify.
Raw Materials: Ingredients or components that become part of the final manufactured product are exempt.
Manufacturing Utilities: Gas and electricity used directly in the manufacturing process qualify for exemption. Usage must be apportioned if utilities serve both manufacturing and non-manufacturing functions.
Expanding Business Threshold: Businesses must increase productive output by at least 5% (general manufacturing) or 10% (federal defense contractors) to qualify for equipment exemptions.
Software and Digital Products
Florida’s software exemptions appeal to e-commerce and SaaS businesses:
Custom Software: Exempt whether delivered tangibly or electronically. Florida defines “custom” broadly. Software qualifies if a salesperson surveys needs and makes recommendations.
SaaS and Electronic Delivery: Software transferred electronically isn’t considered tangible personal property under Florida law, making it not subject to sales tax. This includes cloud-based applications and subscription software.
Prewritten Software: Taxable only when delivered on tangible media like CDs or USB drives.
Permanent Disaster Preparedness Exemptions (Effective August 1, 2025)
Florida permanently exempted disaster preparedness items that were previously tax-free only during seasonal holidays. These exemptions became permanent August 1, 2025:
Batteries: AA, AAA, C, D, 6-volt, 9-volt (specific sizes only)
Safety equipment: All bicycle helmets, carbon monoxide alarms, fire extinguishers, smoke detectors
Outdoor preparedness: Portable generators (up to 10 kilowatts), portable gas cans (5 gallons or less), ground anchor kits, waterproof tarpaulins (1,000 square feet or less)
Personal protection: Insect repellent (EPA-registered), sunscreen (UV-blocking only), life jackets (USCG-approved), coolers
Nonprofit and Government Exemptions
Federal, state, and local government entities are exempt from Florida sales tax. Purchases must be billed directly to and paid by the governmental agency.
Nonprofit Organizations: 501(c)(3) charitable, religious, or educational organizations can obtain a Consumer’s Certificate of Exemption (Form DR-14) by filing Form DR-5 with the Florida Department of Revenue. Certificates must be renewed every five years.
Required Documentation: Nonprofits must provide their IRS determination letter, certificate of incorporation, and by-laws when applying.
New 2025 Permanent Exemptions
Effective July 1, 2025, Florida permanently exempted admissions to state parks from sales tax, covering entry fees to Florida’s 175+ state parks and recreation areas.
Starting August 1, 2025, Florida exempts all sales of gold, silver, platinum, and palladium bullion—bars, coins, and rounds of all purities and quantities, with no minimum thresholds.
How to Claim Florida Sales Tax Exemptions
Resale Certificates
Businesses registered with the Florida Department of Revenue receive a Florida Annual Resale Certificate for Sales Tax. This certificate allows tax-free purchases of items intended for resale.
Critical detail: Resale certificates expire December 31 annually. Active dealers must renew each year. Electronic filers print their own certificates; paper filers receive mailed renewals in mid-November.
Use Tax Obligation: If you buy items tax-free for resale but then use them in your business or personally, you owe Florida use tax on those items.
Exemption Certificate Requirements
Sellers must document tax-exempt sales by obtaining copies of customer exemption certificates or authorization numbers issued by the Department of Revenue.
Valid certificates include:
- Buyer’s name, address, and Florida tax certificate number
- Seller’s name and address
- Description of items and intended use
- Type of exemption claimed
- Authorized signature and date
Best Practices:
- Collect certificates at time of sale
- Verify certificates against Florida DOR standards
- Store digitally for audit retrieval
- Set Q4 renewal reminders for annual resale certificates
- Maintain certificates for at least three years
Common Florida Sales Tax Exemption Mistakes
Overcharging Tax on Exempt Items
Incorrectly taxing groceries, prescription drugs, disaster preparedness items, or SaaS products creates customer friction and potential refund obligations. Sales tax software must be properly configured to recognize Florida exemptions.
HOST’s Free Sales Tax Software Review identifies configuration errors causing overcharges or compliance gaps.
Missing or Expired Exemption Certificates
During audits, missing or expired certificates convert exempt transactions into taxable ones retroactively. The Florida Department of Revenue may hold sellers responsible for uncollected sales tax, plus penalties and interest.
Annual resale certificate renewals require systematic tracking. Many businesses miss the December 31 deadline, creating compliance gaps.
Confusing Exemptions Across States
What’s exempt in Florida may be taxable elsewhere. SaaS is exempt in Florida but taxable in many states. Groceries are exempt in Florida but taxable in some states. Prescription drugs are universally exempt, but over-the-counter medications vary by state.
Multi-state sellers need jurisdiction-specific exemption rules for every nexus state.
HOST: Your Partner for Florida Sales Tax Compliance
Navigating Florida exemptions while managing compliance in 45+ other states creates operational complexity most businesses can’t handle in-house.
Hands Off Sales Tax provides comprehensive sales tax management:
Nexus Analysis: We determine exactly where you’ve triggered Florida’s $100,000 economic nexus threshold and identify all exemption opportunities.
Sales Tax Registration: We handle Florida registration paperwork, county surtax tracking, and ongoing compliance requirements.
Accurate Filing: We prepare and file Florida returns (monthly, quarterly, or annually) including proper exemption documentation.
Software Configuration: Our Free Sales Tax Software Review identifies exemption misconfigurations causing overcharges or audit exposure.
Audit Defense: We represent you during Florida Department of Revenue audits, organizing exemption documentation and defending proper exemption claims.
Certificate Management: We help establish systems for collecting, verifying, and renewing exemption certificates to prevent audit liability.
Since 1999, HOST has focused exclusively on sales tax compliance. Our 25+ years of experience helps e-commerce businesses navigate Florida exemptions confidently while managing obligations across all nexus states.
Stay Compliant Without the Complexity
Florida sales tax exemptions offer legitimate savings when properly documented and claimed. From groceries and prescription drugs to manufacturing equipment and disaster preparedness items, understanding exemptions prevents overcharging customers while reducing your tax burden.
But exemptions create compliance risks without proper documentation. Misconfigured systems, missing certificates, or expired resale certificates trigger audits and assessments. For businesses managing multi-state compliance, Florida exemptions are one piece of a 45-state puzzle.
Professional sales tax management eliminates guesswork. HOST handles exemption documentation, certificate systems, software configuration, and filing accuracy so you can focus on business growth instead of tax codes.
Contact HOST today to discuss your Florida sales tax needs or schedule a free consultation. Let us handle the tax so you can focus on sales.
Want to learn more? Get our “10 Sales Tax Mistakes E-Commerce Sellers Make” e-book.
Frequently Asked Questions
What items are exempt from Florida sales tax?
Florida exempts groceries for home consumption, prescription drugs, most medical supplies, manufacturing machinery and equipment, custom software, SaaS products, agricultural materials, and (as of August 2025) disaster preparedness items like batteries, generators, and safety equipment. Nonprofit and government entities with proper certificates also qualify for exemptions.
How do I claim a sales tax exemption in Florida?
Businesses obtain a Florida Annual Resale Certificate (renewed annually) for wholesale purchases. Nonprofits apply for a Consumer’s Certificate of Exemption (Form DR-14) valid for five years. Sellers must collect and maintain copies of valid exemption certificates to document tax-free sales during audits.
Are groceries taxable in Florida?
Most groceries are tax-exempt in Florida, including fresh produce, meat, dairy, bread, and canned goods. However, prepared foods, soft drinks, candy, and items sold for immediate consumption face sales tax.
Is SaaS taxable in Florida?
No. Software delivered electronically isn’t considered tangible personal property under Florida law, making SaaS and cloud-based software exempt from sales tax. Custom software delivered any way is also exempt.
What manufacturing exemptions does Florida offer?
Florida exempts industrial machinery and equipment, raw materials, manufacturing utilities, and repair parts for qualifying manufacturers. Businesses must use equipment at a fixed Florida location to manufacture items for sale, with expanding businesses meeting productivity thresholds.
Do Florida sales tax exemptions apply to online sales?
Yes. Florida exemptions apply equally to online and in-store sales. E-commerce sellers with Florida economic nexus must apply correct exemptions at checkout, which requires properly configured sales tax software, accurate product categorization, and valid exemption certificates for wholesale transactions.
