Key figures
Florida advisory
2026, with sources
The R&D credit is capped, prorated and targeted
Florida’s research credit is 10% of qualified Florida research expenses over a base amount, limited to 50% of the corporate tax left after other credits, with a five-year carryforward. A company that has existed for less than four years has the maximum reduced by 25% for each missing year.
It is not automatic. The company must be a qualified target industry business, carry a certification letter from FloridaCommerce, apply to the Department of Revenue in a one-week window that opens March 20 for the prior year’s expenses, and share a $9 million statewide pool that is prorated when it is oversubscribed.
Where founders go wrong
No personal income tax makes Florida a common home for founders, and it simplifies payroll. The obligations that remain are mostly at the company level and are easy to miss because nobody expects them.
- Assuming “no income tax” means no corporate return: the C-corp still files Form F-1120.
- Missing the documentary stamp tax on a promissory note signed in Florida.
- Forgetting that independent contractors paid $600 or more must be reported to the new hire registry.
- Filing the annual report after May 1 and paying the $400 late fee, which cannot be waived.
The federal baseline
This page covers what Florida adds. The federal rules underneath it apply here too.
Common questions
Can a Florida startup use the state R&D credit?
Only if it is a qualified target industry business, such as information technology or cloud information technology, has a certification letter from FloridaCommerce, is allowed the federal research credit, and has Florida corporate tax to offset. The credit is nonrefundable, capped at half of the remaining liability, and has no transfer provision, so a pre-profit startup usually has nothing to use it against.
Is there a Florida tax on our convertible notes or venture loan?
Florida taxes written obligations to pay money, so a promissory note signed or delivered in Florida, including a venture debt note or a note to a founder, can carry documentary stamp tax at 35 cents per $100, capped at $2,450 for a note that is not secured by Florida real property. A SAFE is not a debt instrument, but a convertible note is.
Advisory next door
- ALAlabama advisoryAlabama is easy on federal conformity and deducts federal tax, but its self-administered local taxes, seven-day new-hire rule and unsettled treatment of SaaS are where startups trip.
- GAGeorgia advisoryGeorgia’s research credit can be applied against payroll withholding, which matters for a pre-profit company; the 2026 rate cut and conformity changes need to reach the tax provision.
Founder guides on this
- R&D taxThe R&D tax credit and Section 174A for startupsEngineering salaries can earn a federal R&D credit against payroll tax, and Section 174A lets you deduct US research again. What qualifies, what to track.
- SAFEsHow to account for SAFEs on your balance sheetA SAFE is cash today and shares later. Why it usually sits with liabilities, how the cap and discount set conversion, and what to book at the priced round.
- PeopleContractor or employee? Classification for startupsContractor or employee depends on control, not the contract. The IRS test, state rules, 1099s, payroll registration and the cost of getting it wrong.
More of the Florida guide
- AccountingAccounting and state tax in FloridaCorporate tax, conformity to federal rules, apportionment and what it does to your books
- ReceivablesReceivables and sales tax in FloridaSales tax registration, economic nexus, whether SaaS is taxable, and collecting from customers
- PayablesPayables and contractors in FloridaPaying vendors and contractors: 1099 filing, use tax, contractor tests and withholding
- PayrollPayroll taxes and employer rules in FloridaWithholding, unemployment insurance, paid leave, minimum wage and the rules on paydays
- ComplianceCompliance and filings in FloridaRegistering to do business, annual reports, franchise tax and the filing calendar
Sources
Checked against each agency’s own page on . Rates and thresholds change, usually on January 1.
General information for US companies, not tax, legal or accounting advice for yours. Rules and thresholds change; confirm the specifics with a CPA or the agency before you act on them.