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Payroll Tax in Florida: Complete Guide 2026

Tax information is for educational purposes only and does not constitute tax advice. Consult a licensed tax professional for your specific situation.

Florida is one of only nine states with no individual income tax, which means employers do not withhold state income tax from employee paychecks. The sole state-level payroll tax in Florida is the Reemployment Tax (formerly called Unemployment Compensation Tax), paid exclusively by employers. This streamlined system makes Florida one of the simplest and most affordable states for payroll compliance. However, employers must still comply with federal payroll obligations including FICA and FUTA.

Florida Payroll Tax Rates (2026)

Employer-Paid State Taxes

Tax	Rate	Wage Base
Reemployment Tax (UI)	~0.10% — ~5.40%	First ~$7,000 per employee
New employer rate	~2.70%	First ~$7,000
New construction employer rate	~2.70% — ~5.40%	First ~$7,000

Employee-Paid State Taxes

Tax	Rate
State income tax withholding	None
State disability insurance	None
Paid family leave	None

Combined Federal and State Overview

Tax	Rate	Paid By	Wage Base
Social Security (OASDI)	~6.20%	Employee + ~6.20% employer	~$176,100
Medicare	~1.45%	Employee + ~1.45% employer	No cap
Additional Medicare	~0.90%	Employee only	Over ~$200,000
Florida Reemployment Tax	~0.10% — ~5.40%	Employer only	~$7,000

How Florida Payroll Taxes Work

No State Income Tax

Florida’s constitution prohibits a state income tax on individuals. This means there is no state income tax withholding, no state income tax returns for employees, and no related compliance for employers. Employees keep more of their gross pay, and employers avoid the administrative burden of state withholding calculations.

Reemployment Tax

Florida’s Reemployment Tax is the state’s version of unemployment insurance. Key details:

Who pays: Employers only. Employees do not contribute.
Wage base: The tax applies to the first ~$7,000 of each employee’s annual wages, which is the federal minimum.
New employer rate: Most new employers are assigned a rate of ~2.70%. New construction employers may receive a higher rate.
Experience rating: After sufficient claims history is established (typically ~10 quarters of reporting), rates are adjusted annually based on the employer’s benefit charge ratio. Rates range from ~0.10% (minimum) to ~5.40% (maximum).
Voluntary contributions: Florida does not allow voluntary contributions to reduce your experience-rated tax rate.

When Employers Are Subject to the Tax

Florida employers become liable for the Reemployment Tax when they:

Pay ~$1,500 or more in total wages during any calendar quarter, or
Employ at least one worker for some part of a day in each of ~20 different calendar weeks during the current or preceding calendar year

Agricultural and domestic employers have different thresholds.

Federal Unemployment Tax (FUTA)

In addition to the Florida Reemployment Tax, employers must pay the federal FUTA tax of ~6.00% on the first ~$7,000 of each employee’s wages. Because Florida’s unemployment program is in good standing, employers receive a ~5.40% credit, reducing the effective FUTA rate to ~0.60%.

Employer Registration and Compliance

Florida employers must register with the Department of Revenue (DOR) for Reemployment Tax. Key requirements:

Quarterly reporting: File the Employer’s Quarterly Report (Form RT-6) each quarter, detailing wages paid and tax due.
Payment schedule: Taxes are due by the last day of the month following each quarter.
Electronic filing: Employers with ~10 or more employees must file and pay electronically.
Record retention: Maintain payroll records for at least ~5 years.
Worker classification: Florida follows federal common-law rules for determining employee vs. independent contractor status.

Comparison to National Average

State	State Income Tax Withholding	UI Wage Base	Disability/PFL	Total State Payroll Taxes
Florida	None	~$7,000	None	Reemployment only
Texas	None	~$9,000	None	UI only
California	Yes	~$7,000	SDI + PFL + ETT	High
New York	Yes	~$12,800	DBL + PFL + MCTMT	High
Georgia	Yes	~$9,500	None	UI + withholding
National average	Varies	~$16,500	Varies	Varies

Florida’s payroll tax environment is among the lightest in the nation. The ~$7,000 wage base matches the federal minimum, and the absence of state income tax withholding, disability insurance, and paid family leave programs keeps compliance simple.

Tips for Managing Florida Payroll Tax

Monitor your experience rate. Contest unjustified unemployment claims with the DOR to prevent your rate from increasing.
Track the ~$7,000 wage base. Once an employee’s wages exceed ~$7,000, no further Reemployment Tax is due for that employee for the rest of the year.
File electronically. If you have ~10 or more employees, electronic filing is mandatory. Even smaller employers benefit from the convenience and speed.
Maintain records for ~5 years. Florida’s retention requirement is one year longer than the federal minimum, so keep records accordingly.
Classify workers properly. Misclassification can trigger back taxes, penalties, and loss of favorable experience ratings.
Review your rate notice annually. The DOR mails rate notices each December for the following year. Verify the rate and report any errors promptly.
Plan around federal obligations. Even though Florida’s state payroll taxes are minimal, federal FICA and FUTA still apply in full.

Key Takeaways

Florida has no state income tax, so there is no state income tax withholding from paychecks.
The only state payroll tax is the Reemployment Tax, paid by employers at ~0.10% to ~5.40% on the first ~$7,000 of wages.
New employers are assigned a rate of ~2.70%.
Florida does not have state disability insurance or paid family leave programs.
The ~$7,000 wage base is the federal minimum and the lowest possible.
Florida’s payroll tax system is one of the simplest and least costly in the nation.

Next Steps

Federal Income Tax Guide 2026 — Federal payroll obligations that still apply in Florida.
Self-Employment Tax Guide — Federal self-employment taxes apply to Florida residents.
State Income Tax Rates Comparison 2026 — Compare Florida’s no-income-tax advantage.
Tax Bracket Calculator — Calculate federal-only tax liability as a Florida resident.
Find a CPA Near You — Get professional help with Florida payroll setup.