Florida Contractor Tax & Invoice Rules: The Complete Guide

Florida's contractor tax rules follow the real property improvement model — with one critical twist that catches many contractors off guard: the county discretionary surtax.

The Florida Contractor Model

Florida construction contractors generally treat the job-site property improvement work as follows:

Materials: Subject to 6% state sales tax plus county discretionary surtax.

Labor for real property improvements: Generally non-taxable if separately stated on the invoice.

Labor for repairing tangible personal property: Taxable.

The key: always separately state labor and materials. If you don't itemize, Florida can treat the entire amount as taxable.

The County Discretionary Surtax — Most Missed Rule

In addition to the 6% state rate, each Florida county levies a discretionary surtax. These rates vary by county and can change annually. The surtax applies to the first $5,000 of any taxable sale.

Important: The surtax rate is determined by the job-site county, not where your business is located.

| County | 2026 Combined Rate | |---|---| | Miami-Dade | 7% | | Broward | 7% | | Palm Beach | 7% | | Orange (Orlando) | 6.5% | | Hillsborough (Tampa) | 7.5% | | Duval (Jacksonville) | 7% |

Always verify current rates at the Florida Department of Revenue.

What Must Go on a Florida Contractor Invoice

1. Contractor name, address, and state license number 2. Client name and job-site address (and county — for surtax verification) 3. Date of service 4. Separately itemized: Labor (non-taxable) and Materials (taxable) 5. 6% state tax + county surtax on materials 6. Payment terms

Tools for Florida Contractors

Florida Plumber Invoice Generator

Florida HVAC Receipt Generator

Florida Roofer Invoice Generator