In Fiscal Year (FY) 2011, Florida collected $65.3 billion in state and local taxes. While this is an impressive sum of money, it tells us little about whether or not the average Florida taxpayer can afford this level of taxation.
As shown in the charts below, Florida’s state and local tax burden (tax collections divided by personal income) was the eighth lowest in the nation for FY 2011 at 8.8 percent—or 16 percent below the national average of 10.5 percent. Florida’s tax burden has actually declined over time by -11.3 percent to 8.8 percent in FY 2011 from 9.9 percent in FY 1950.
Florida’s low state and local tax burden can be first attributed to not having an individual or corporate income tax since they tend to be progressive (higher tax rates on higher levels of income) which increases the tax burden over time. Additionally, Florida has been reducing the property tax and all other taxes with declines of -14.7 percent and -57.2 percent, respectively.
Scott has nearly 20 years of experience as a public policy economist. He is the author, co-author and editor of over 180 studies and books. His professional experience also includes positions at the American Conservative Union Foundation, Granite Institute, Federalism In Action, Maine Heritage Policy Center, Tax Foundation, and Heritage Foundation.