Miami

๐Ÿ›’

Taxes on Purchases

Overview of Miami's sales tax and what visitors should expect when making purchases.

Sections

Comprehensive Guide to Taxes on Purchases in Miami, United States

If you're visiting or moving to Miami, understanding how sales tax works is essential for budgeting and making informed purchases. Below is a detailed guide to help you navigate the sales tax system in Miami, Florida.

1. Current Sales Tax Rate in Miami

  • Sales Tax Rate: The total sales tax rate in Miami is 7% as of October 2023.
    • This rate includes:
      • Florida State Sales Tax: 6%
      • Miami-Dade County Surtax: 1% (also known as the discretionary sales surtax)

This combined rate applies to most goods and services purchased in Miami.

2. How Sales Tax is Applied

  • Point of Sale: Sales tax is calculated and added at the time of purchase. The price tags on items in stores typically do not include sales tax, so the final amount you pay at checkout will be higher than the listed price.
  • Online Purchases: If you order items online and they are shipped to Miami, sales tax will generally be applied based on the delivery address. Most major online retailers automatically calculate and include the correct sales tax.

3. Tax-Exempt Items

Certain items are exempt from sales tax in Florida, including Miami. These exemptions are designed to reduce the financial burden on essential goods and services. Below are the key categories:

a. Groceries

  • Most unprepared food items (e.g., fruits, vegetables, bread, milk) are tax-exempt.
  • However, prepared foods (e.g., hot meals, restaurant food, or deli items) are taxable.

b. Prescription Medications

  • Prescription drugs are exempt from sales tax.
  • Over-the-counter medications, vitamins, and supplements are taxable unless prescribed by a doctor.

c. Medical Equipment

  • Certain medical devices, such as wheelchairs, prosthetics, and hearing aids, are exempt from sales tax.

d. Clothing and Footwear

  • Florida does not have a general exemption for clothing, so most clothing and footwear are taxable.
  • However, during Floridaโ€™s annual Back-to-School Sales Tax Holiday, certain clothing, footwear, and school supplies may be temporarily exempt from sales tax (see Section 6 for more details).

e. Utilities

  • Residential electricity and heating fuel are taxed at a reduced rate of 6.95% in Miami.

4. Taxable Items

Most goods and services in Miami are subject to the 7% sales tax. Common taxable items include:

  • Electronics (e.g., phones, laptops, TVs)
  • Furniture and home goods
  • Restaurant meals and takeout
  • Alcoholic beverages
  • Hotel stays and short-term rentals
  • Entertainment and event tickets
  • Gasoline (note: gas prices include federal and state excise taxes, not sales tax)

5. Special Considerations for Visitors

a. Hotel and Lodging Taxes

  • In addition to the 7% sales tax, visitors staying in hotels, motels, or short-term rentals (e.g., Airbnb) in Miami are subject to an additional Tourist Development Tax of 6%. This brings the total tax on lodging to 13%.

b. Rental Cars

  • If you rent a car in Miami, you will pay the 7% sales tax plus a $2 per day rental car surcharge.

c. Duty-Free Shopping

  • Miami is a major international travel hub, and visitors flying out of the U.S. can shop at duty-free stores in the airport. These stores sell items like alcohol, tobacco, and luxury goods without sales tax, but only for international travelers.

6. Sales Tax Holidays

Florida offers periodic sales tax holidays, during which certain items are temporarily exempt from sales tax. These holidays are particularly beneficial for residents and visitors alike. Examples include:

a. Back-to-School Sales Tax Holiday

  • Typically held in late summer (dates vary annually).
  • Exemptions include:
    • Clothing, footwear, and accessories priced under a specific threshold (e.g., $100 per item).
    • School supplies priced under a specific threshold (e.g., $50 per item).
    • Computers and related accessories priced under a specific threshold (e.g., $1,500).

b. Disaster Preparedness Sales Tax Holiday

  • Usually held before hurricane season (Mayโ€“June).
  • Exemptions include:
    • Flashlights, batteries, portable generators, and other emergency supplies.

c. Energy Star and WaterSense Sales Tax Holiday

  • Dates vary.
  • Exemptions include energy-efficient appliances and water-saving products.

Check the Florida Department of Revenue website for the latest dates and details on sales tax holidays.

7. Tips for Visitors and New Residents

a. Keep Receipts

  • If you're visiting from a country with a VAT refund system, note that the U.S. does not offer sales tax refunds for international visitors. However, keeping receipts can help you track expenses or claim deductions if applicable in your home country.

b. Budget for Taxes

  • Always account for the 7% sales tax when budgeting for purchases. For example, an item priced at $100 will cost $107 after tax.

c. Use Tax-Exempt Opportunities

  • Take advantage of sales tax holidays or duty-free shopping if your travel plans align with these opportunities.

d. Understand Local Variations

  • While the sales tax rate in Miami is 7%, other counties in Florida may have slightly different rates due to varying surtaxes. If you travel outside Miami-Dade County, double-check the local rate.

e. Ask for Tax-Exempt Status (if applicable)

  • Certain organizations, such as non-profits or government entities, may qualify for tax-exempt purchases. If this applies to you, ensure you provide the necessary documentation at the time of purchase.

8. Resources for Further Information

By understanding how sales tax works in Miami, you can better plan your purchases and avoid surprises at checkout. Whether you're a visitor or a new resident, this guide should help you navigate the system with ease!