News & Insights

Florida Says Goodbye to Sales Tax Brackets

Tax Development Apr 28, 2021

Florida Says Goodbye to Sales Tax Brackets

On April 19, 2021, Florida Governor Ron DeSantis signed S.B. 50 (2021), which will finally eliminate the antiquated bracket system that has always been used to calculate sales tax, replacing it with an algorithm. The algorithm requires sales tax to be calculated using three decimals, rounding up when the third decimal is greater than four. Historically, retailers had to program their point of sale (POS) systems to calculate sales tax on published brackets.

Pursuant to S.B. 50, changes are effective July 1, 2021; however, Florida has provided retailers until September 30, 2021, to implement such POS system changes. Between July 1 and September 30, 2021, retailers are allowed to use either the old bracket system or the new algorithm method.1

Florida was one of the few remaining states that still used a bracket system.2 The algorithm Florida is now adopting is used by the majority of states and is the same rounding method required of member states that are parties to the Streamlined Sales Tax Agreement. This transition to the algorithm method will make compliance much easier for taxpayers.

The implementation of the algorithm method was just one of the sales tax changes from S.B. 50. For more information on other tax provisions provided in S.B. 50, please refer to Ryan’s tax development Florida Establishes Rules for Remote Sellers and Marketplace Providers.

1 Florida S.B. 50 (2021); see also Florida Tax Information Publication No. 21A01-02 (April 28, 2021).

2 Alabama and Maryland still use the bracket system.


Susan Bittick

Clara Kippes

Julie Moore

The material presented in this communication is intended to provide general information only and should solely be seen as broad guidance and not directed to the particular facts or circumstances of any individual who may read this publication. No liability is accepted for acts or omissions taken in reliance upon the content of this piece. Before taking (or not taking) any action, readers should seek professional advice specific to their situation from Ryan, LLC or other tax professionals. For additional information about this topic, please contact us at