Tax Lawyers in Miami

Miami’s tax system is shaped by Florida’s overall tax structure, particularly its lack of a state personal income tax. This means residents don’t pay state taxes on wages, investments, or retirement income. However, federal income taxes still apply.

The combined sales tax rate in Miami is 7%, which includes Florida’s statewide 6% rate and a 1% discretionary surtax imposed by Miami-Dade County. Also, basic necessities like groceries and prescription medications are generally exempt.

In Miami, businesses are subject to Florida’s 5.5% corporate income tax, mainly affecting C corporations. Most LLCs and S corps avoid this tax, as their income passes through to owners. While Miami does not impose separate corporate taxes, they do require a Local Business Tax for operating businesses.

The average effective property tax rate in Miami-Dade County is around 0.85%, which can vary depending on location and specific exemptions – these taxes are based on assessed value, minus exemptions such as the homestead exemption for primary residences. Also, Miami does not impose an estate or inheritance tax.

Additionally, taxes are managed at the state level by the Florida Department of Revenue, and locally by Miami-Dade County and the City of Miami.

Miami has no local income tax due to Florida’s lack of state personal income tax, benefiting business owners and employees across various income sources (wages, salaries, self-employment income, pensions, Social Security, retirement withdrawals, investment income). However, federal income taxes still apply.

In Miami, Florida, pass-through entities (sole proprietorships, partnerships, S corporations, LLCs) generally pay no state income tax due to Florida’s tax structure but are obligated for federal and other state/local taxes, including the 7% combined sales tax and tangible personal property tax. The general use tax rate for out-of-city purchases in Miami-Dade County is 7% (6% state + 1% county surtax).

Also, a tourist/bed tax up to 13% applies to hotel/short-term rental stays, combining state sales tax, county tourist development tax, and applicable municipal resort taxes (e.g., Miami Beach, Bal Harbour).

Neither the state of Florida nor the city of Miami imposes a state or local income tax, meaning many types of earnings are fully exempt from state and local taxation. These include:

• Employment income: Wages, salaries, bonuses, commissions, and self-employment income are not taxed at the state level, though they remain subject to federal income tax.
• Retirement Income: Retirement income, including Social Security benefits, pensions, 401(k) withdrawals, and IRA distributions, is also exempt from state taxation
• Investment Income: Florida does not tax capital gains, dividends, or interest income at the state level, making it a tax-friendly state for investors and retirees.
• Business Income: Business owners operating sole proprietorships, partnerships, and S corporations benefit from Florida’s lack of personal income tax, as these pass-through entities do not pay state tax on their earnings. However, C corporations are subject to a 5.5% corporate income tax on taxable profits.

While Florida and Miami do not tax personal income, residents still contribute to state revenue through sales taxes, property taxes, and various business taxes.

Yes, the state of Florida and the city of Miami offer several tax exemptions that benefit residents, businesses, and retirees by reducing overall tax burdens.

• Homestead Exemption: Homeowners can reduce the taxable value of their primary residence by up to $50,000, lowering property taxes. Additional exemptions are available for seniors, disabled veterans, blind persons, widow(er), and first responders.
• Sales Tax Exemptions: Florida and Miami do not impose sales tax on groceries, prescription medications, and medical devices. Certain business-related purchases, such as manufacturing equipment, R&D machinery, and agricultural supplies, also qualify for exemptions.
• No State Income Tax: Florida does not tax wages, salaries, pensions, Social Security benefits, or investment income, making it especially attractive for retirees and high earners.
• No Estate or Inheritance Tax: There are no state-level taxes on estates or inheritances, allowing for easier wealth transfer without additional state taxation.

While Florida does not levy a personal income tax, residents still contribute through sales taxes, property taxes, and corporate taxes. However, these exemptions help minimize the overall tax burden.

The cost of hiring a Miami tax lawyer varies based on the complexity of your case, whether it involves IRS audits, offshore compliance, or business tax disputes.

At Taxlawyer.com, we help Miami residents find licensed Miami tax attorneys who offer expert legal services without excessive financial burden. Our directory connects you with experienced tax lawyers in Miami and in-house tax attorneys ready to assist.

Finding the right Miami tax lawyer is crucial when dealing with IRS audits, tax debt relief, or business tax matters. Follow these key steps:

• Identify your tax issue – Federal audits, state tax disputes, offshore reporting, or business taxation.
• Research and verify credentials – Ensure your attorney specializes in tax law and has IRS representation rights.
• Schedule an initial consultation – Discuss your case details and potential legal strategies.
• Understand service fees – Clarify whether the lawyer charges hourly, a flat fee, or a retainer.

At TaxLawyer.com, we connect Miami residents with top-rated Miami tax attorneys ready to assist.