Florida Use Tax: What It Is and Who Must Pay

Most people are familiar with Florida’s 6% sales tax. Far fewer are familiar with use tax, which is the lesser-known companion to sales tax and one of the most commonly overlooked obligations in the state. Whether you are a business owner purchasing equipment from an out-of-state vendor or an individual who ordered goods online without paying Florida tax, use tax may already apply to you. This guide explains what Florida use tax is, who owes it, and how to stay compliant.

What Is Florida Use Tax?

Use tax is a tax imposed on the use, storage, or consumption of taxable goods and services in Florida when sales tax was not collected at the time of purchase. It exists to ensure that purchases made outside Florida are taxed at the same rate as purchases made within the state, preventing buyers from gaining a tax advantage by shopping out of state or online.

The Florida Department of Revenue describes use tax as applying to any taxable item brought into or delivered into the state on which Florida sales tax was not paid. The use tax rate is 6%, the same as the general state sales tax rate, and applicable county discretionary surtaxes may also apply depending on where the goods are used or stored.

Key point: Use tax is not an additional tax. It is the same tax that sales tax would have been. If sales tax was properly collected at point of purchase, no use tax is owed.

Sales Tax vs. Use Tax: What Is the Difference?

Understanding the relationship between these two taxes is essential before diving into who owes what.

	Sales Tax	Use Tax
Who collects it	The seller, at the point of sale	The buyer, when seller does not collect
When it applies	At the time of purchase in Florida	When taxable goods enter Florida untaxed
Who remits it	Registered dealers to the DOR	The buyer directly to the DOR
Rate	6% + applicable county surtax	6% + applicable county surtax

Both taxes are reported on the same return, Form DR-15, which is Florida’s primary Sales and Use Tax Return.

The Two Types of Florida Use Tax

Florida recognizes two distinct categories of use tax, and understanding which applies to your situation determines how you report and pay it.

1. Consumer Use Tax

Consumer use tax is owed by individuals and businesses that purchase taxable goods without paying Florida sales tax. This most commonly arises in the following situations:

• Buying taxable goods from an out-of-state seller who does not collect Florida sales tax
• Ordering products online from a retailer that has no Florida nexus and does not charge Florida tax
• Purchasing items in another state and physically bringing them into Florida for use
• Importing goods from another country that would be taxable if purchased in Florida

Example: A business owner in Jacksonville purchases office furniture from a Georgia retailer and transports it back to Florida. The Georgia seller charges 4% Georgia sales tax. Since Florida’s rate is 6%, the business owner owes an additional 2% as Florida use tax on the purchase price.

2. Seller’s (Retailer’s) Use Tax

Seller’s use tax applies to registered Florida dealers and businesses, not to individual consumers. It is triggered when a business:

• Purchases an item tax-free for resale but later uses, consumes, or gives that item away internally
• Takes goods out of resale inventory for business use or personal use
• Uses products purchased under a resale certificate for purposes other than resale
• Provides free samples or promotional giveaways from tax-exempt inventory

Seller’s use tax is calculated at the same rate as sales tax based on where the item is used, stored, or consumed.

Who Must Pay Florida Use Tax?

Florida use tax applies broadly. The following categories of buyers may owe use tax:

Individuals

• Florida residents who buy taxable goods online and do not pay Florida sales tax at checkout
• Residents who purchase items in other states and bring them home to Florida
• Anyone who imports taxable goods from outside the United States into Florida

Businesses

• Companies that purchase equipment, supplies, or materials from out-of-state vendors who do not collect Florida tax
• Businesses that withdraw items from tax-exempt resale inventory for internal business use
• Employers who purchase promotional merchandise or giveaway items tax-free and then distribute them

Nonprofits and Other Entities

• Organizations that do not hold a valid Florida Consumer’s Certificate of Exemption and purchase taxable goods without paying sales tax

When Use Tax Does Not Apply

Not every untaxed purchase results in a use tax liability. Florida law provides specific situations where use tax is not owed:

• Full sales tax already paid: If you paid 6% or more in sales tax at the time of purchase in another state, no additional Florida use tax is due. If you paid less than 6%, you owe the difference.
• Six-month out-of-state use: Items purchased and used in another U.S. state, territory, or the District of Columbia for six months or more before being brought into Florida are exempt from use tax. This exception does not apply to items used outside the country.
• Purchases under $1 in tax owed: If the total use tax due on a purchase computes to less than one dollar, no return needs to be filed for that transaction.
• Exempt goods: Items that are exempt from Florida sales tax, such as most unprepared groceries, prescription drugs, and qualifying medical equipment, are also exempt from use tax.

How to Calculate Florida Use Tax

Calculating use tax follows a straightforward process:

1. Identify the purchase price of the taxable item, which is the full amount paid before any taxes.
2. Apply the 6% state rate to arrive at the state use tax owed.
3. Add the applicable county surtax based on the county where the item is used or stored. County surtax rates range from 0% to 1.5% for most counties. For tangible personal property, the county surtax applies only to the first $5,000 of the purchase price per item.
4. Subtract any tax already paid to another state. If you paid 4% sales tax in Georgia on a purchase, you owe only 2% to Florida.

How to Report and Pay Florida Use Tax

The method for reporting use tax depends on whether you are a registered Florida dealer or an individual consumer.

For Registered Florida Dealers and Businesses

Registered dealers report and pay use tax on their regular Sales and Use Tax Return, Form DR-15, filed through the Florida Department of Revenue’s eServices portal. Use tax is entered on Line B of the return for the period in which the item was purchased or consumed. Returns and payments are due on the 1st of the month following the reporting period and are considered late after the 20th.

For Individual Consumers and Unregistered Buyers

Individuals and businesses without a Florida sales tax registration should use Form DR-15MO, the Out-of-State Purchase Return. Key filing rules include:

• Use tax on remote purchases is due on the first day of the month following the quarter in which the purchase was made
• Payment is considered late after the 20th of that same month
• You can file a DR-15MO at any time during the year; there is no limit on how many you can submit
• Payment must be made by check or money order if filing by mail (no cash accepted), or you can file and pay online at floridarevenue.com

Note: Registered Florida dealers must not use Form DR-15MO. All use tax for registered dealers is reported on Form DR-15 only.

Special cases:

• Aircraft: Use the Sales and Use Tax Return for Aircraft (Form DR-15AIR)
• Boats: Use the appropriate vessel registration form when registering the boat in Florida

Penalties for Failing to Pay Use Tax

Ignoring use tax obligations carries real financial consequences. Florida’s Department of Revenue actively enforces use tax compliance, including through audits that specifically look for unreported purchases from out-of-state vendors.

Penalties include:

• Late filing penalty: 10% of the tax due or a minimum of $50, whichever is greater
• Interest charges: A floating rate of interest accrues on all unpaid balances, updated by the DOR on January 1 and July 1 each year
• Electronic filing penalties: Businesses required to file electronically but failing to do so face an additional $10 penalty per occurrence on top of other penalties

The good news: The Florida Department of Revenue typically waives penalties for taxpayers who voluntarily come forward and pay use tax liabilities before being contacted by the Department. Self-reporting is always the better path.

Common Use Tax Mistakes to Avoid

Many individuals and businesses unknowingly accumulate use tax liability over time. The most frequent errors include:

• Assuming online purchases are automatically tax-free when the seller does not charge tax
• Forgetting that physical items purchased during out-of-state business travel and brought back to Florida may be subject to use tax
• Using items from resale inventory internally without recognizing that use tax is now owed on those items
• Failing to account for the county surtax on top of the base 6% state rate
• Not keeping records of out-of-state purchases makes it difficult to calculate liability accurately during an audit

Practical Steps to Stay Compliant

Staying on top of Florida use tax is primarily a matter of tracking and routine. The following steps help both businesses and individuals manage their obligations effectively:

1. Track all out-of-state and online purchases of tangible goods throughout the year, noting the purchase price and whether Florida sales tax was collected.
2. Identify any resale inventory that has been withdrawn for internal business use, free samples, or giveaways, and calculate the use tax owed on those items.
3. Verify tax paid on purchases made in other states. If you paid less than 6%, calculate the difference owed to Florida.
4. File and pay on time using the correct form for your situation (DR-15 for registered dealers, DR-15MO for consumers and unregistered businesses).
5. Retain purchase records and invoices for at least three years in case of a Department of Revenue audit.

Key Takeaways

Florida use tax is one of the most overlooked tax obligations in the state, yet it applies to a wide range of everyday transactions. Here is a quick summary of the most important points:

• Use tax applies when taxable goods are purchased without paying Florida sales tax, including online and out-of-state purchases
• The rate is 6% plus any applicable county discretionary surtax
• Two types exist: consumer use tax (owed by buyers) and seller’s use tax (owed by registered dealers on internal use of tax-exempt inventory)
• Registered dealers report use tax on Form DR-15; individuals and unregistered businesses use Form DR-15MO
• Voluntary payment before the DOR contacts you typically results in penalty waivers
• Items used outside Florida for six months or more before being brought into the state are generally exempt

Understanding and meeting your use tax obligations protects your business from audit exposure and keeps you in good standing with the Florida Department of Revenue.