Short-Term Rental Taxes in Florida: What Investors Need to Know in 2025

Florida is the largest short-term rental market in the United States. With over 150,000 active STR listings, markets from the Florida Panhandle to the Florida Keys, and no state personal income tax, Florida is one of the most tax-favorable states for STR investors from a pure income tax standpoint. But that doesn't mean STR taxes are simple here — the combination of state sales tax and county-level tourist development taxes creates a layered compliance obligation.

The Big Advantage: No Florida State Income Tax

Florida's most significant tax advantage for STR investors is the absence of a state personal income tax. While California investors pay up to 13.3% state income tax on top of federal taxes, Florida investors pay only federal. For a high-income investor in the 37% federal bracket with $200,000 in rental income, the absence of state income tax saves $26,000+ compared to a California resident in the same situation.

This also means Florida fully benefits from 100% federal bonus depreciation (OBBBA) without any state-level adjustment. California, by contrast, does not conform to federal bonus depreciation for state taxes — Florida investors don't face that complexity.

Florida Sales Tax on STR Rentals

Florida imposes a 6% state sales tax on all transient rental accommodations (rentals under 6 months). This applies to both the rental rate and most required cleaning fees charged to guests. Florida STR operators must register with the Florida Department of Revenue and either collect and remit this tax themselves or ensure their booking platform (Airbnb, VRBO) is collecting it.

Airbnb has a marketplace facilitator agreement with Florida — meaning Airbnb collects and remits Florida state sales tax on bookings made through their platform. VRBO/Vrbo has similar arrangements in most Florida counties. Direct bookings (your own website) require you to collect and remit independently.

County Tourist Development Taxes

Florida STR Licensing Requirements

Florida requires all STR operators to obtain a Vacation Rental License from the Florida Department of Business and Professional Regulation (DBPR). The license must be renewed annually and requires inspection in some cases. Unlicensed operation can result in significant fines ($1,000+ per day in some jurisdictions).

Additionally, many Florida municipalities have added their own short-term rental regulations. Miami Beach has highly restrictive STR rules in some zones. Some counties have adopted registration programs on top of the state license. Check both state and local requirements before operating.

Cost Segregation in Florida: What's Different

Florida STR investors benefit from cost segregation in the same way as investors in any other state — the federal tax savings are the same. With no state income tax, there's no state-level complexity around bonus depreciation conformity. A $600,000 Florida beach house or Orlando vacation rental with a cost segregation study might generate $130,000+ in first-year federal depreciation deductions.

Florida's top STR markets — Destin/30A, Miami Beach, Orlando/Kissimmee, St. Pete Beach, Naples, and the Florida Keys — all feature high property values that amplify cost segregation benefits. A $900,000 beachfront property in Destin could generate $200,000+ in first-year deductions.

Top Florida STR Markets and Tax Profiles

• Destin/30A/Okaloosa & Walton Counties: 11% total transient tax; strong rental demand; high property values with excellent cost seg potential
• Orlando/Kissimmee/Orange County: 12% total transient tax; world's largest STR market by volume; strong average stays support the 7-day loophole
• Florida Keys/Monroe County: 11% total transient tax; very high property values ($1M+); significant outdoor amenity value for cost seg
• Naples/Collier County: 11% total transient tax; luxury market; high personal property ratios on furnished vacation homes
• St. Pete/Clearwater/Pinellas: 12% total transient tax; affordable relative to Naples; strong occupancy rates