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How Sales Tax is Calculated in Florida

Learn how Bravo calculates sales tax in Florida, including county surtaxes and tax rate application across item types.

The State of Florida has a different way of calculating Sales Tax than most places. 

Florida uses a bracket system for calculating sales tax when transactions fall below or in between whole dollar amounts. A full explanation of how these taxes are calculated can be found on the Florida Department of Revenue website, located here .

To correctly calculate the sales tax on a sale in Florida, you can't just multiply the sales amount by the tax rate and round to the nearest penny.  

For example:
Sales tax 7%
Sale Amount = $132.48

Typically you could find the sales tax owed by a simple multiplication equation.

132.48 x 0.07 = 9.2736.  

Rounding 9.2736 down will give us a rate of 9.27 for sales tax.  Yet if this same transaction took place in Florida, the sales tax would be 9.28.

Here's why:

We need to take the whole dollar amount first:

  • 132.48 - 0.48 = 132.00

Now we can multiply that by the tax rate of 7%

  • 132.00 x 0.07 = 9.24

Now to find the tax on the remainder, we need to turn to the Florida tax tables:

The above image is the tax table for the 7% tax rate.

We need to find the tax for $0.48 (132.48 - 132.00 = 0.48).

The first bracket has the amount that we need:

Amounts that fall between 0.43 and 0.57 have a tax of 0.04.

So to get the correct tax for this transaction, we need to add the original tax that we calculated plus the bracket amount for the remainder.

The full calculation looks like this:

  • Sales Tax 7%
  • Sale Amount $132.48
  • 132.48 - 0.48 = 132.00 (whole dollar amount)
  • 132.00 x 0.07 = 9.24 (tax on whole dollar amount)
  • 0.48 is remaining
  • 0.04 (Tax rate from bracket for 0.48)
  • 9.24 + 0.04= 9.28
  • The tax charged and due on this sale is $9.28.

You get the same result if you figure to the nearest $10.

  • Sales Tax 7%
  • Sale Amount $132.48
  • 132.48 - 2.48 = 130.00 (whole dollar amount)
  • 132.00 x 0.07 = 9.10 (tax on whole dollar amount)
  • 2.48 is remaining
  • 0.18 (Tax rate from bracket for 0.48)
  • 9.10 + 0.18 = 9.28
  • The tax charged and due on this sale is $9.28.

 

Bravo does all of these unique calculations as long as the store itself is located in Florida on the Information Page in the System Configuration. For more information on Florida's tax rate and calculations, please visit the Florida Department of Revenue website here .  From the Florida Revenue web site, click on the How Tax is Calculated bar at the bottom of the page to read more.

 

 

All of the relevant tax bracket tables can be found on the site.