Does Florida tax capital gains?

Florida does not assess a state income tax, and as such, does not assess a state capital gains tax. Any money earned from investments will be subject to the federal capital gains tax described below, but you won’t owe any money to the Sunshine State. Capital gains are taxed federally.

What is capital gains tax?

The capital gains tax is a tax on money earned from investments rather than from wages or salary, which are generally subject to income tax. Capital gains are treated differently based on how much time transpired between the investor’s purchase and sale of the asset.

What is capital gains on home sales in Florida?

Let’s get started uncovering the mysteries of capital gains on home sales in Florida. Capital gains taxes on home sales in Florida are determined by tax bracket and length of time lived in the home. Qualifying for the long-term capital gains tax rate requires owning and living in the home for at least two years.