You’re standing at the counter in a Wynwood gallery or maybe grabbing a quick cafecito in Little Havana. You see the price tag. You hand over your card. Then, the receipt pops up and the number is just... different. It’s higher. Welcome to the reality of sales tax in miami fl. Most people assume it’s a flat rate across the state, but if you've spent any time driving across the county line into Broward or down to the Keys, you know the math doesn't always stay the same.
Miami is expensive. We know this. But the tax structure here is a specific kind of beast that catches small business owners and tourists off guard constantly.
It isn't just one number. It's a stack.
Basically, Florida has a base rate, and then Miami-Dade County decides to tack on its own "discretionary surtax." It’s like a layer cake of fees that ends up funding everything from the confusing transit system to local infrastructure. If you’re trying to run a business or just manage a household budget, you need to stop guessing and actually look at how these decimals move.
Breaking Down the 7% Sales Tax in Miami FL
Let’s get the big number out of the way. When you buy something in Miami-Dade County, you are generally paying a 7% sales tax.
How do we get there? Florida has a statewide sales tax rate of 6%. That’s the baseline. Then, Miami-Dade County adds its own 1% discretionary sales surtax. Combined, that hits 7%. It sounds simple, but the way that extra 1% is applied can get weirdly granular depending on what you’re buying and how much it costs.
For example, the Miami-Dade surtax generally only applies to the first $5,000 of a purchase for many items. If you’re buying a $50,000 car, you aren't paying that extra 1% on the full fifty grand. The state still gets its 6% on the whole thing, but the local county surtax has a "cap" on the amount it can grab from a single high-value item.
Businesses have to be incredibly careful here. If you’re a seller and you don’t collect that extra 1%, or if you collect it on the wrong items, the Florida Department of Revenue (DOR) is going to have a very long, very annoying conversation with you later.
The Logistics of the Surtax
Why does Miami-Dade have this extra 1%? It’s actually split up. A big chunk of it—specifically the Charter County and Regional Transportation System Surtax—is supposed to go toward making the city more navigable. Whether or not you think the MetroMover or the buses are doing a good job is a different debate, but that's where the money is earmarked.
There's also a small sliver for things like the Homeless and Domestic Violence Tax, which is actually applied to food and beverage sales in certain establishments.
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Wait.
Yes, food is different.
In most of Miami, if you go to a restaurant that sells alcohol for consumption on-site, you might see an extra 1% tax on your bill specifically for homeless shelters and domestic violence centers. This is separate from the standard sales tax in miami fl. However, if you're in Miami Beach or Bal Harbour, those cities have their own special rules. They are "exempt" from that specific countywide homeless tax because they already have their own municipal resort taxes.
It’s a patchwork. It’s confusing. And it’s why your bill at a steakhouse in South Beach looks different than your bill at a steakhouse in Doral.
What’s Actually Taxable (and What Isn’t)
Most tangible personal property is fair game. Clothes, electronics, furniture, toys—7%. But Florida is actually somewhat "friendly" compared to states like New York or California when it comes to the essentials.
Groceries are mostly exempt. If you’re buying milk, bread, and eggs at a Publix in Kendall, you aren't paying sales tax. But the second you grab a rotisserie chicken that’s still hot, or a soda, the tax kicks in. Why? Because the state classifies that as "prepared food" or "luxury items" (in the case of soda).
Common exemptions include:
- Most prescription drugs and many over-the-counter medicines.
- Basic groceries (not snacks or hot food).
- Certain medical products like crutches or wheelchairs.
- Seeds and fertilizer for farmers.
But don’t get too comfortable. If you’re renting a commercial space for your new startup in Brickell, you’re going to get hit with a tax on your rent. Florida is one of the few states that charges sales tax on commercial real property leases. For 2024 and 2025, the state has been lowering this rate significantly, but you still have to add the Miami-Dade 1% surtax on top of whatever the current state rate is.
The Miami Beach "Resort Tax" Trap
If you are a tourist—or a local staycationer—Miami Beach is a different world for your wallet. On top of the standard sales tax in miami fl, the City of Miami Beach imposes its own "Resort Tax."
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If you stay in a hotel on the beach, you aren't paying 7%. You're likely paying 14%.
- 6% State Sales Tax
- 1% County Surtax
- 4% City Convention Development Tax
- 3% Resort Tax
Then, when you go downstairs to the hotel restaurant, the tax on your meal is 9% (the 7% standard plus a 2% municipal resort tax on food and beverages).
This is why people get "bill shock." They see a $300 room rate and a $50 dinner and somehow end up spending way more than they budgeted. Honestly, if you’re planning a trip, you have to look at the "all-in" price, not just the sticker price on Expedia.
E-commerce and the "Nexus" Problem
Since 2021, Florida has been much more aggressive about collecting tax on online purchases. It used to be that if you bought something from an out-of-state website, you could often dodge the sales tax in miami fl. Not anymore.
Under the "Wayfair" ruling logic, Florida now requires "remote sellers" to collect and remit sales tax if they have a certain amount of sales into the state. If you live in a Coconut Grove apartment and order a pair of shoes from a boutique in Oregon, that boutique is likely going to charge you the full 7% because they are delivering it to a Miami-Dade address.
The tax is based on where the item is delivered, not where the seller is located. This is called "destination-based" sourcing. If you’re a business owner in Miami shipping goods to Orlando, you charge the Orlando rate (6.5%). If you ship to a customer in Miami, you charge 7%.
Common Misconceptions and Mistakes
I’ve seen a lot of small business owners make the mistake of thinking they only owe the state 6%. They forget the local surtax. When the audit happens—and the Florida DOR does audit—the state will demand that missing 1% plus interest and penalties.
Another big one? Thinking services aren't taxable. In Florida, most "pure" services (like a lawyer or a consultant) don't carry sales tax. But if the service is part of the sale of a physical product, the whole thing becomes taxable. If you’re an artist and you sell a painting, but you charge for "consultation time" and "framing" and "delivery," the state generally wants tax on the whole invoice.
Also, don't forget the Discretionary Surtax.
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Some people think the 1% applies to everything. It doesn't. If you sell a single item for more than $5,000, you only collect the 1% on the first $5,000. For example, on a $10,000 piece of equipment, you’d collect 6% on the full $10,000 ($600) and 1% on the first $5,000 ($50). Total tax: $650. If you just multiplied 7% by $10,000, you’d be overcharging the customer by $50.
That might not seem like a lot, but it’s technically illegal to over-collect tax, and it makes your prices look less competitive.
How to Handle an Audit or a Discrepancy
If you realize you haven't been paying the right amount of sales tax in miami fl, don't just wait for a letter in the mail. Florida has a Voluntary Disclosure Program. If you come forward before they find you, they will often waive the penalties, though you’ll still owe the back taxes and interest.
For consumers, if you think you’ve been overcharged, you can actually ask the merchant for a refund or, in extreme cases, file a claim with the Department of Revenue.
Actionable Steps for Navigating Miami Sales Tax
Whether you’re a resident or a business owner, you need a plan for these numbers.
For Business Owners:
- Update your POS system. Ensure your software is set to the specific Miami-Dade 7% rate and that it handles the $5,000 surtax cap automatically.
- Verify your "DR-13" certificate. This is your sales tax resale certificate. Use it to buy inventory tax-free so you only collect tax from the end consumer.
- Separate your "Resort Tax" from your "Sales Tax." If you operate in Miami Beach or Bal Harbour, these are different buckets and are paid to different entities.
For Shoppers and Residents:
- Check the math on big purchases. If you’re buying jewelry or high-end electronics over $5,000, make sure the shop isn't charging you the 1% surtax on the portion above that threshold.
- Budget for 14% on South Beach stays. Don't let the "hidden" resort and convention taxes ruin your vacation budget.
- Keep receipts for business expenses. If you’re a freelancer, you might be able to get a credit or deduction for sales tax paid on equipment, but only if you have the paper trail.
Miami-Dade's tax code isn't exactly light reading, but ignoring it is an expensive hobby. The 7% total is the standard, but the exceptions in Miami Beach and the caps on high-value items are where people usually lose money. Keep an eye on your receipts and stay updated on the annual "Tax-Free Holidays" Florida often runs for back-to-school and hurricane preparedness—those are the only times you’ll see that 7% drop to zero.