How is tax collected in Tampa?
While gathering information about the tax collection system in Tampa, Florida, at first you must know that in 2020, Tax Jurisdiction of Tampa comes under Florida (6%) and Hillsborough (2.5%). That means the combined sales tax rate is 8.5% in Florida. In the below-mentioned sections, we have discussed a few more on various tax rates and some rules and regulations for filing them.
Glimpses of some basic rules
Tampa and entire Florida do not have any state income tax.However, citizens need to pay federal income taxes.
Business corporations earning their income in Florida file a corporate income tax return and some of them gain exemptions too. There are exemptions for sole proprietorships, individuals, estates of decedents and testamentary trusts. In Florida and Tampa, the corporate income tax rate is 5.5%.
While speaking about the rules of property tax, this is calculated on the basis of the market value of the Real Estate Property as of the first day of the month of January.
Rules regarding Property Tax
The state government of Florida has not imposed any Property Tax. However, local governments of Tampa and other locations in Florida impose property taxes. In Tampa, a citizen needs to pay $5.73 as a city property tax for every assessed and non-exempted property value of $1000. According to the tax rules of the state of Florida, there are exemptions like Homestead Exemptions, Widow Exemptions, Senior Citizen Exemptions, Blind Person Exemptions, Veterans Exemptions and Total and Permanent Disability Exemptions.
Rules regarding Reemployment Tax (previously known as Unemployment Tax)
Licensed business houses have to pay a specific type of tax. These tax amounts are distributed among the employees who have been fired and had no fault of their own.
Rules regarding other types of taxes
Florida and Tampa do not have any Estate Tax or Inheritance Tax. Moreover, no portion of any willed property or wealth goes to the state.
In Tampa, you don’t need to pay any tax for intangible goods. Thus, you can invest affordably.
For internet services and products of other states, the State Sales Tax needs to be paid. Residents report these sales and pay use taxes imposed on them.
If a document provides any interest on the value of a Real Estate Property, then a Documentary Stamp Tax will be levied. There are separate taxes for tobacco products, transport services, fuels and a few more.
As a reputed international tax consultancy service in Toronto, at The Accounting & Tax, we assist our foreign clients of Tampa in filing their taxes following all local and federal tax laws. We guide them in a friendly manner for providing a hassle-free experience.
