Individual Tax
The US tax system is progressive, meaning different portions of your income are taxed at different rates depending on which bracket they fall into. Your highest tax rate (marginal tax rate) only applies to the income within that specific bracket, not your entire taxable income.
Corporate Tax
The United States taxes the profits of resident C corporations at a flat rate of 21%. This rate was established by the Tax Cuts and Jobs Act (TCJA) of 2017, significantly reducing the previous top rate of 35%. The purpose of this reduction was to enhance the global competitiveness of US corporations. The 21% rate applies to all C corporations, regardless of size or industry. The tax is calculated on a company's taxable income after deductions and credits. Unlike individuals, corporations pay a single federal rate. Foreign multinational companies with US operations are also subject to US corporate tax on profits from their US business activities. Certain US-source income not effectively connected to a non-US corporation's trade or business may be taxed at a 30% flat rate, which can be reduced by treaty or domestic law.
Pass-through entities:
Many US businesses are structured as "pass-through" entities like sole proprietorships, partnerships, and S corporations. These entities are not subject to corporate income tax. Instead, their profits and losses are passed through to their owners and reported on individual income tax returns.
Capital Gains Tax
Capital gains taxes apply to profits made from selling assets, like stocks, bonds, or real estate. The rate you pay depends on how long you held the asset before selling it: short-term (one year or less) or long-term (more than one year).
Sales & Use Tax
Each sale, admission, storage, or rental in Florida is taxable, unless the transaction is exempt. Sales tax is added to the price of taxable goods or services and collected from the purchaser at the time of sale. Use tax is due on the use or consumption of taxable goods or services when sales tax was not paid at the time of purchase.