How to Calculate Intangible Tax in Florida

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Intangible tax is a tax levied on certain types of intangible assets owned by individuals and businesses in the state of Florida. These intangible assets include stocks, bonds, mutual funds, money market funds, and other non-physical assets. The purpose of this tax is to generate revenue for the state and to offset the lack of a state income tax in Florida.

Calculating intangible tax in Florida is a relatively straightforward process. The tax is based on the assessed value of the intangible assets owned by an individual or business as of January 1st of each year. The assessed value is determined by multiplying the fair market value of the assets by a certain percentage, which is set by the Florida Department of Revenue.

To calculate the intangible tax, follow these steps:

1. Determine the fair market value of your intangible assets as of January 1st.
2. Multiply the fair market value by the applicable percentage set by the Florida Department of Revenue. This percentage may change from year to year, so it’s important to check the latest rates.
3. The result of this calculation is the assessed value of your intangible assets.
4. Multiply the assessed value by the intangible tax rate, which is currently set at 0.002.
5. The final result is the amount of intangible tax you owe.

Now, let’s address some frequently asked questions about intangible tax in Florida:

1. Who is required to pay intangible tax in Florida?
Individuals and businesses that own intangible assets with a fair market value above the exemption threshold are required to pay this tax.

2. What is the exemption threshold for intangible tax in Florida?
As of 2021, the exemption threshold is $20,000 for individuals and $40,000 for married couples filing jointly.

3. Are there any additional exemptions available?
Yes, certain types of intangible assets, such as government bonds, are exempt from intangible tax in Florida.

4. How often is intangible tax paid?
Intangible tax is paid annually, and the due date is June 30th of each year.

5. Can I deduct the intangible tax paid on my federal income tax return?
No, intangible tax is not deductible on your federal income tax return.

6. What happens if I fail to pay the intangible tax?
Failure to pay the intangible tax may result in penalties and interest being assessed on the unpaid amount.

7. Can I file for an extension to pay the intangible tax?
No, there are no extensions available for intangible tax. It must be paid by the June 30th deadline.

8. Where do I pay the intangible tax in Florida?
Intangible tax payments are made to the Florida Department of Revenue either online or by mail.

In conclusion, calculating intangible tax in Florida involves determining the assessed value of your intangible assets and multiplying it by the intangible tax rate. It is important to be aware of the exemption thresholds, due dates, and any available exemptions to ensure compliance with the tax regulations. If you have further questions or need assistance, it is recommended to consult with a tax professional or contact the Florida Department of Revenue.
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