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Florida Tax Obligations for eCommerce Businesses

Florida attracts businesses and residents alike with its famously low tax burden — including no personal income tax. With over 22 million residents, it's also one of the most significant consumer markets in the country for eCommerce sellers. But "no income tax" doesn't mean "no tax obligations," and Florida has rules that can catch out-of-state sellers off guard. At Tall Oak Advisors, we help eCommerce sellers cut through the confusion. Here's what you need to know about your Florida tax obligations.

Aug 21, 2026

4 min

Table of contents

Florida Income & Tax for eCommerce Businesses

💡 Two Separate Tax Systems: Florida has no personal income tax, but it does have a 5.5% Corporate Income Tax for C corporations — and a robust sales & use tax system with its own nexus rules. This article covers both. Sales tax details are covered in the section below, with more comprehensive guidance coming from Tall Oak Advisors' upcoming State Sales Tax service.

Part 1: Florida Corporate Income Tax

Florida imposes a 5.5% corporate income tax on C corporations that are doing business in the state. This is one of the most misunderstood aspects of Florida's tax code for out-of-state sellers.

Who Is Subject to It?

Florida's corporate income tax applies to C corporations (and certain other entities taxed as corporations) that have a business connection — or nexus — with Florida. Crucially:

S corporations, LLCs, and partnerships are generally NOT subject to Florida's corporate income tax, because Florida has no personal income tax to "pass through" to. This is one of Florida's genuine advantages for pass-through business owners.
C corporations with nexus in Florida ARE subject to the 5.5% tax on their Florida-apportioned income.

What Creates Corporate Income Tax Nexus in Florida?

Unlike some states, Florida's corporate income tax nexus is based on physical presence and business activity standards — not economic thresholds. There is no revenue threshold that automatically triggers corporate income tax nexus for C corporations. Instead, nexus is created by:

Having employees, agents, or independent contractors conducting sales or other business in Florida
Maintaining an office or other place of business in Florida
Owning, renting, or leasing real or personal property in Florida (including inventory in a warehouse or FBA fulfillment center)
Delivering goods to Florida customers using company-owned or leased vehicles
Assembling, installing, servicing, or repairing products in Florida

PL 86-272 Protection

Federal Public Law 86-272 protects businesses from state income taxation if their only in-state activity is the solicitation of orders for tangible goods approved and shipped from outside Florida. If your C corporation qualifies, Florida cannot impose its corporate income tax on your net income.

However: if you have inventory stored in a Florida FBA warehouse, or any Florida-based employees, you likely do not qualify for this protection.

Part 2: Florida Sales & Use Tax — The Bigger Issue for Most Sellers

For the majority of eCommerce sellers — especially those structured as S corps, LLCs, or sole proprietors — the corporate income tax is not relevant. But Florida's sales and use tax affects virtually every seller who ships goods to Florida customers.

Economic Nexus for Sales Tax

Florida implemented economic nexus for remote sellers effective July 1, 2021. The rules are straightforward:

Threshold: $100,000 in retail sales of tangible personal property delivered to Florida customers in the prior calendar year
No transaction count requirement — revenue only
Marketplace sales through certified facilitators like Amazon do not count toward your individual threshold calculation
Once you exceed $100,000 in a calendar year, you have collection obligations for the entire following calendar year, regardless of that year's sales volume

Florida Sales Tax Rates

The base Florida state rate is 6%. However, each of Florida's 67 counties adds a discretionary surtax ranging from 0.5% to 2.5%, bringing the maximum combined rate to 8.5% depending on the customer's county. Florida is a destination-based state — the customer's county determines the applicable rate.

Marketplace Sellers: A Special Note

If you sell exclusively through Amazon, Etsy, or another certified marketplace facilitator, that platform is responsible for collecting and remitting Florida sales tax on your behalf — and those sales don't count toward your $100,000 threshold. However, if you also sell through your own Shopify, WooCommerce, or direct website, those sales are tracked separately and can independently trigger nexus.

Remote Employees: A Hidden Risk

One of the most common ways out-of-state businesses accidentally create Florida nexus is through remote employees. Many workers relocated to Florida during and after the pandemic — and if your team member works from a Florida address, you may have both employment tax nexus and, for C corporations, corporate income tax nexus in the state.

What About Sales Tax?

At Tall Oak Advisors, we put together this guide as a resource for our eCommerce community. Tax rules vary significantly from state to state, and we want sellers to have the information they need to make informed decisions. More info at talloakadvisors.com

Disclaimer: The information in this article is for general informational purposes only and does not constitute legal or tax advice. Tax laws change frequently. Please consult a qualified tax advisor or CPA regarding your specific situation.

Sources: Florida Statutes Chapter 220 (Corporate Income Tax); Florida Department of Revenue — Information for Out-of-State Businesses; Florida Sales & Use Tax Economic Nexus Law (HB 7059, eff. July 1, 2021); Pub. L. No. 86-272.

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Michigan Tax Nexus for eCommerce Sellers

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North Carolina Tax Obligations for eCommerce Sellers

North Carolina is one of the most important eCommerce markets in the Southeast — and also one of the most dynamic from a tax policy perspective. The state is in the middle of a phased corporate income tax elimination plan that will reduce the rate to zero by 2030. At the same time, North Carolina recently simplified its sales tax nexus rules by eliminating the transaction threshold. If you sell into North Carolina, now is the time to understand where things stand. At Tall Oak Advisors, we help our clients track these moving pieces and stay ahead of compliance obligations.