Florida Sales Tax: Are Tariffs Taxable

Running a business in Florida means keeping track of many costs, from inventory and shipping to state taxes. But what happens when tariffs get added to the products you import? One of the biggest questions Florida businesses ask is: Are tariffs taxable under Florida sales tax law?

This blog explains what tariffs are, how Florida tax law views them, why they matter to your business, and what you should do to stay compliant. We’ll keep it simple, so it’s easy to follow, even if you’re not a tax expert.

What Is Florida Sales Tax?

First, let’s cover the basics. Florida has a general sales tax rate of 6%, and many counties add a local surtax on top, which can bring the total rate up to around 7–8% depending on where your business is located. For example, Miami-Dade County has an additional 1% surtax, making the total tax rate 7%.

If you sell products in different counties or ship across Florida, you need to charge the correct total tax rate based on where the sale is made or where the product is delivered. You then send (or “remit”) that tax to the Florida Department of Revenue.

But what’s included in the amount you calculate tax on? That’s where things like tariffs come in.

What Exactly Are Tariffs?

Tariffs are special taxes or duties set by the U.S. government on goods that come into the country from other countries. The purpose of tariffs is often to protect local industries or balance trade.

For example, if you import steel, electronics, or clothing, the U.S. may charge a tariff that raises the cost of those goods. Tariffs are usually paid when the goods arrive in the country, before they’re sold to customers.

How Florida Tax Law Treats Tariffs

Under Florida tax law, the “sales price” of an item isn’t just the amount you paid your supplier. It includes nearly all costs that help get the product ready for sale to the customer. That means expenses such as shipping charges, import duties, and especially tariffs are generally considered part of the taxable amount.

In practice, this works like this: when you import goods into the United States, you often have to pay tariffs as part of the customs process. These tariffs increase the total cost of your inventory. Florida tax law treats these tariffs as part of the “cost of goods sold.” Because the law requires you to collect sales tax based on the full sales price, tariffs become taxable when you sell the goods to customers.

For example, imagine you buy a shipment of electronics from overseas. The original price from the supplier is $10,000. At the port of entry, you pay a 10% tariff, which is another $1,000. Now, your actual cost for the items is $11,000.

When you sell this item in Florida, the sales tax is usually based on that higher cost, not just the original price. So if your Florida sales tax rate is 6%, the tax becomes $66 instead of $60.

This shows how taxable tariffs directly affect what customers pay and how much you collect in Florida sales tax.

It’s the same for other costs, like customs duties or mandatory fees that are part of getting the product into your warehouse or ready for retail. Even if these charges appear separately on your books or on your invoices, they generally can’t be excluded from the taxable amount because they directly add to the product’s price.

Why This Matters for Florida Business Owners

This rule matters because it directly affects how much Florida sales tax you must collect and send to the Florida Department of Revenue. It also affects how competitive your pricing is compared to similar goods produced locally that might not be subject to tariffs.

While there can be limited exceptions, for example, if certain fees are optional for the customer or truly separate services unrelated to the product’s sale, tariffs paid as part of importing the goods are almost always taxable in Florida.

For business owners, this means you need to:

Keep detailed records showing the tariffs and other charges you paid.
Accurately add these costs to your calculation when you figure out the sales tax owed.
Understand that failing to include tariffs in your taxable price could lead to under-collection of sales tax, which may result in penalties, interest, or audits from the Florida Department of Revenue.

In short, Florida tax law makes it clear: if you import goods and pay tariffs to get them ready for sale, those tariffs must be included when calculating Florida sales tax. This is why it’s important for businesses to plan ahead and understand how taxable tariffs impact both their pricing strategy and compliance obligations.

The Real-World Impact of Tariffs on Sale Prices

Tariffs don’t just increase the tax you collect. They can change your overall pricing strategy, too. Here’s how:

Higher prices for customers: If your cost goes up because of tariffs, you might have to raise your selling price to keep your profit margins.
Higher Florida sales tax collected: Since Florida sales tax is based on the total price, including tariffs, customers pay more tax when the item price increases.
Competitive challenges: Imported goods with tariffs might become more expensive than local goods, leading some customers to choose alternatives.

All of this can affect how well certain products sell and what your overall revenue looks like.

Does Florida Have Sales Tax on Everything?

Florida sales tax mainly applies to tangible personal property (items you can touch or move). Some services are also taxable, but many aren’t. The tax doesn’t usually apply to groceries, prescription medicine, and a few other exempt categories.

When it comes to imported goods, the key point is this: if the item itself is taxable under Florida law, then tariffs on that item are also part of the taxable price.

Staying Compliant with Florida Tax Law

Following Florida tax law helps your business avoid audits, penalties, and unexpected tax bills. Here’s what to do:

Include tariffs in your taxable base: Add them to your item cost when calculating Florida sales tax.
Keep records: Save invoices, import documents, and customs forms showing tariffs paid.
Use resale certificates: If you buy items to resell, present a Florida resale certificate to avoid paying sales tax at purchase, so you can charge it when you sell to your customers.
Stay updated: Florida tax laws can change, so check regularly or talk to a tax professional.

Good record-keeping and clear accounting make it easier to show you’ve followed the rules.

Are There Exceptions?

In most cases, tariffs are taxable if they’re part of the product’s purchase price. However, if a charge is separately stated and not directly part of the sale (like certain handling or financing charges), it may not be taxable.

These rules can be complex, so when in doubt, it’s wise to check with an accountant or tax attorney who knows Florida sales tax.

Why It Matters to Your Business

Including tariffs in the taxable base isn’t just about following the law; it also affects your pricing, cash flow, and competitiveness.

Your final product cost goes up.
Your customers end up paying more.
Your business must collect and remit the higher Florida sales tax.

Knowing these details helps you plan better, avoid mistakes, and keep your business financially healthy.

Final Thoughts

So, are tariffs taxable under Florida sales tax? In most cases, yes. Tariffs paid when importing goods usually become part of the sales price, meaning you must include them when calculating sales tax.

By understanding how taxable tariffs work and knowing the current Florida sales tax rate, you can avoid compliance issues and keep your pricing transparent for customers.

Need help figuring out how Florida tax law affects your business?

Reach out to Spirit One today. We make legal topics like Florida sales tax and taxable tariffs easy to understand. Want more helpful tips and updates? Explore our blog and share your questions or suggestions!