Florida has the Second Lowest State and Local Tax Burden in the Nation for FY 2016

Mar 20, 2018

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In Fiscal Year (FY) 2016, Florida collected $70.2 billion in state and local taxes—or $3,399 for every man, woman, and child in the state. While this is an impressive sum of money, it tells us little about whether or not the average Florida taxpayer can afford this level of taxation?


To better answer this question, this analysis will calculate Florida’s tax burden relative to the private sector. Ultimately, it is the private sector that creates new wealth and income. A high tax burden means a state is hobbling its private sector relative to other states and reducing their long-run economic growth potential.

Click here to view tax burden data by state, type of tax, and for years 1950 to 2016

Fortunately for taxpayers, as shown in Chart 1, Florida’s state and local tax burden (tax collections divided by private sector personal income) was the second lowest in the nation for FY 2016 at 10.6 percent—or -26 percent below the national average of 14.3 percent.


Chart 1 Florida State and Local Tax Burden FY 2016.jpg


#Florida state and local #taxburden in FY 2016 was the 2nd lowest in the nation at 10.6%— -26% below US average of 14.3% @keypolicydata #FLpol #FLleg #FLsen #FLgov #PolicyData (click to tweet)


As shown in Chart 2, Florida’s tax burden has decreased over time by -13 percent to 10.6 percent in FY 2016 from 12.1 percent in FY 1950. Only two other states have accomplished this amazing feat: Alaska which is down -49 percent (since FY 1959 which is the year they became a state) and South Dakota which is down -5 percent.


Chart 2 Florida Tax Burden by Type of Tax FY 1950 to 2016.JPG 


#Florida state and local #taxburden has decreased -13% between FY 1950 (12.1%) to 2016 (10.6%) - one of only 3 states to do so @keypolicydata #FLpol #FLleg #FLsen #FLgov #PolicyData (click to tweet)

Click here to view tax burden data by state, type of tax, and for years 1950 to 2016


As shown in Chart 3, Florida’s 10.6 percent tax burden is greater than these combined industries: construction (5.2 percent), manufacturing (4.1 percent), utilites (0.5 percent), forestry, fishing, and related activities (0.3 percent), and mining, quarrying and oil and gas extraction (0.1 percent).


Chart 3 Florida State and Local Tax Burden vs. Major Industry FY 2016.JPG


#Florida state and local #taxburden > combined industries: construction, manufacturing, utilities, forestry/fishing, and mining/oil and gas @keypolicydata #FLpol #FLleg #FLsen #FLgov #PolicyData (click to tweet)


Florida’s low state and local tax burden can be first attributed to not having an individual income tax since it tends to be progressive (higher tax rates on higher levels of income) which increases the tax burden over time.

Additionally, Florida has been reducing the property tax and all other taxes with declines of -26 percent (3.7 percent, 20th lowest) and -60 percent (2.5 percent, 20th highest), respectively. These declines are offset by the sales tax which has grown 337 percent to 3.7 percent and is the 18th highest in the country.

Of course, the tax burdens for local government can vary just as much as they do among the 50 states. As such, we have also calculated the local government tax burden for every county in Florida—this includes every taxing jurisdiction within the geographic county borders whether it is a city, a special district, or county government itself (see Chart 4).

The twenty Florida counties with the highest local government tax burden include:

  • Putnam County, FL (19.1 percent)
  • Hamilton County, FL (13.4 percent)
  • Franklin County, FL (10.3 percent)
  • Gulf County, FL (10.1 percent)
  • Union County, FL (8.9 percent)
  • Hernando County, FL (8.7 percent)
  • Hardee County, FL (7.7 percent)
  • DeSoto County, FL (7.5 percent)
  • Washington County, FL (7.1 percent)
  • Taylor County, FL (7.0 percent)
  • Alachua County, FL (6.8 percent)
  • Dixie County, FL (6.7 percent)
  • Miami-Dade County, FL (6.6 percent)
  • Charlotte County, FL (6.6 percent)
  • Glades County, FL (6.6 percent)
  • Leon County, FL (6.5 percent)
  • Okeechobee County, FL (6.5 percent)
  • Hendry County, FL (6.4 percent)
  • Jackson County, FL (6.3 percent)
  • Osceola County, FL (6.3 percent)

The twenty Florida counties with the lowest local government tax burden include:

  • Lake County, FL (4.5 percent)
  • Marion County, FL (4.4 percent)
  • Holmes County, FL (4.4 percent)
  • Manatee County, FL (4.3 percent)
  • Hillsborough County, FL (4.3 percent)
  • Brevard County, FL (4.2 percent)
  • Palm Beach County, FL (4.2 percent)
  • Gilchrist County, FL (4.2 percent)
  • Nassau County, FL (4.1 percent)
  • Sarasota County, FL (4.0 percent)
  • Seminole County, FL (3.8 percent)
  • Jefferson County, FL (3.8 percent)
  • Wakulla County, FL (3.6 percent)
  • Pasco County, FL (3.4 percent)
  • Indian River County, FL (3.3 percent)
  • Martin County, FL (3.3 percent)
  • Clay County, FL (3.2 percent)
  • Collier County, FL (2.9 percent)
  • St. Johns County, FL (2.8 percent)
  • Santa Rosa County, FL (2.7 percent)

Chart 4 Florida Local Tax Burden by County FY 2016.JPG

Click here to view tax burden data by state, type of tax, and for years 1950 to 2016

Finally, don’t forget to watch our exclusive time-lapse video of state and local tax burdens over the last 66 years! See if your state has been above or below the national average?




Category: Tax Burdens

J. Scott Moody

Scott has nearly 20 years of experience as a public policy economist. He is the author, co-author and editor of over 180 studies and books. His professional experience also includes positions at the American Conservative Union Foundation, Granite Institute, Federalism In Action, Maine Heritage Policy Center, Tax Foundation, and Heritage Foundation.

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