Selling a business in Florida: what the state takes (2026)
Florida has no broad individual income tax. Here is what an owner selling company stock pays, with 2026 rules from official sources and worked examples at $10 million, $25 million and $50 million.
- None
- Top Florida income tax rate (2026)
- $0
- State tax on a $25M long-term gain
- 23.8%
- Combined federal and state rate on $25M
- 43 of 51
- Rank by total tax on $25M (1 = highest)
How Florida taxes a business sale
- Income tax
- No broad-based individual income tax.
- Long-term capital gains
- Florida has no personal income tax, so a resident individual owes no state tax on the gain.
- Entity-level taxes
- C corporations pay 5.5% corporate income tax (after a $50,000 exemption), so a C corp asset sale is taxed at the entity level. S corporations file and pay only if they owe federal entity-level tax (Form 1120S line 23c, e.g. built-in gains tax).
- Local taxes
- No local income taxes.
Three worked examples
| Long-term gain | $10,000,000 | $25,000,000 | $50,000,000 |
|---|---|---|---|
| Federal capital gains tax (20%) | $2,000,000 | $5,000,000 | $10,000,000 |
| Net investment income tax (3.8%) | $380,000 | $950,000 | $1,900,000 |
| Florida tax | $0 | $0 | $0 |
| Total tax | $2,380,000 | $5,950,000 | $11,900,000 |
| Effective combined rate | 23.80% | 23.80% | 23.80% |
| Net proceeds after tax | $7,620,000 | $19,050,000 | $38,100,000 |
| Extra tax versus Texas | $0 | $0 | $0 |
Seller’s tax calculator
Estimate federal and state tax on a stock sale and what is left before fees and debt.
- Long-term capital gain
- $25,000,000
- Federal capital gains tax (20%)
- $5,000,000
- Net investment income tax (3.8%)
- $950,000
- Florida tax
- $0
- Total tax
- $5,950,000
- Effective rate on the gain
- 23.80%
- Net proceeds after tax
- $19,050,000
Illustration, not tax advice. Assumes a resident individual, the whole gain long-term, top marginal rates, no state credits, installment terms, QSBS exclusion or other planning, and no local taxes. Net proceeds are before transaction fees, debt repayment, escrows and earn-outs. Rates are for tax year 2026 where published; see the methodology.
Compare with other states
Common comparisons
- California37.1% combined, $15.72M net
- New York34.1% combined, $16.48M net
- Texas23.8% combined, $19.05M net
- Nevada23.8% combined, $19.05M net
- Washington33.5% combined, $16.63M net
- Tennessee23.8% combined, $19.05M net
Methodology and sources
Florida figures are for tax year 2026. No individual income tax in any year; the state constitution bars an income tax on natural persons beyond amounts creditable against federal tax. The examples assume a resident individual selling privately held stock for a long-term gain equal to the sale price (zero basis), with every dollar taxed at the top marginal rates, the federal 20% capital gains rate and the 3.8% net investment income tax, and no planning, credits or local taxes. Full assumptions are in the report methodology.
All 50 states and DC with source URLs.
- 1Florida Constitution, Art. VII, s. 5 (Estate, inheritance and income taxes)
- 2Florida DOR, Corporate Income Tax
- 3Tax Foundation, State Individual Income Tax Rates and Brackets, 2026. Secondary source
Data last updated October 26, 2026.
Cite this research
You may quote and republish figures from this page with attribution and a link to the source.
Citation
Laurent Capital Research, “The Seller’s Tax Map: What Selling a Business Costs in Every State (2026): Florida,” 2026, https://laurent.capital/research/seller-tax-map/floridaLink (HTML)
<a href="https://laurent.capital/research/seller-tax-map/florida">The Seller’s Tax Map: What Selling a Business Costs in Every State (2026): Florida</a> (Laurent Capital)Planning a sale and weighing the tax cost?
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