# Florida Contractor Taxes and Licensing: Sales Tax, Licenses and Workers' Comp

In Florida, how you price the contract decides the sales tax. On lump-sum, cost-plus or time-and-materials real property jobs, the contractor is the final consumer: it pays the 6% state tax plus any county surtax on materials and charges the customer none. Only a retail sale plus installation contract lets you buy for resale and charge tax on materials.

## Key takeaways

- Florida has no personal income tax, so sole proprietors and pass-through owners pay no state tax on business profit. Corporations pay 5.5%.
- Real property contracts (lump sum, cost plus, fixed fee, T&M): pay tax to suppliers, charge the customer no tax.
- Retail sale plus installation: list and price materials up front, buy tax-exempt with a DR-13 resale certificate, and charge tax on materials.
- DBPR licenses most building trades. Work under $2,500 total is exempt only if it's casual and you don't advertise as a contractor.
- Construction businesses need workers' comp from the first employee, counting corporate officers and LLC members. Other industries start at four.

## What makes Florida different for contractors?

Two things stand out. First, the Florida Department of Revenue (DOR) sorts jobs by **contract structure**, not by whether the work is new construction or a repair. The same kitchen remodel can be a nontaxable real property contract or a taxable sale of materials depending on how you write it up. Second, Florida's licensing system splits into **certified** licenses that work statewide and **registered** licenses that only work in the local areas where you proved competency. Add a workers' comp rule that kicks in at one construction employee, and Florida is a state where paperwork choices carry real money.

This page is a plain-English summary of official sources, checked on 2026-10-19. It isn't tax or legal advice. Rules change, so confirm with the agency linked in each section and talk to a CPA who works with Florida contractors before you change how you bill.

## Is contractor labor taxable in Florida?

Generally no, when the work improves real property. DOR's guide GT-800067 says items "permanently installed into a structure, where they cannot be removed without destroying them, are classified as real property and are not subject to sales tax." Its examples include electrical systems, landscaping, roofing, masonry, carpentry, driveways, docks and seawalls, and tile. Repairs to fixtures are treated as repairs to real property too.

The exception is repair of **tangible personal property**, meaning things that aren't part of the building. If you use parts in that kind of repair, DOR says to "charge the customer tax on labor and materials." A labor-only repair of personal property isn't taxable. GT-800067 draws no residential vs. commercial line for real property work, which is a big contrast with [Texas](https://www.brix.so/taxes/texas).

**How Florida taxes common contractor jobs**

| Job | Contract type | Who pays sales tax |
| --- | --- | --- |
| Re-roof, lump-sum price | Real property contract | Contractor pays tax on materials to the supplier; no tax on the invoice |
| Bathroom remodel, time and materials | Real property contract | Contractor pays tax on materials; no tax on the invoice |
| Ceiling fans sold and installed, materials listed and priced before work | Retail sale plus installation | Contractor buys for resale and charges tax on the materials |
| Repairing a customer's portable generator with new parts | Repair of tangible personal property | Tax on parts and labor |

_Source: Florida DOR GT-800067. Illustrative examples; the contract's actual terms control._

## Who pays tax on materials, and when do you need a resale certificate?

Under lump-sum, cost-plus, fixed-fee, time-and-materials and similar real property contracts, DOR says "the contractor is the final consumer of materials and supplies." You pay sales tax to your suppliers on everything you buy and you "should not charge tax to the customer." Build that tax into your price.

A **retail sale plus installation** contract flips it. You list and price all materials before work starts, the customer takes title and risk of loss on them, and you "should buy the materials tax-exempt for resale" and "charge the customer tax on all materials." To buy for resale you need to be registered as a dealer (Form DR-1 application, DR-11 certificate) and give suppliers a Florida Annual Resale Certificate (DR-13).

- **Real-property-only contractors usually shouldn't register.** DOR says contractors should not register unless they fabricate items or also sell at retail.
- **Fabrication:** if you build items in your shop for your own jobs, you owe use tax on their fabricated cost.
- **Exempt customers:** you can't use a church's or government's exemption to buy materials. The entity has to buy directly, with its own purchase order and exemption certificate, or you owe the tax.
- **Out-of-state suppliers:** if they don't collect Florida tax, you owe use tax plus surtax. See [use tax for contractors](https://www.brix.so/learn/use-tax-for-contractors).

For how Florida compares with other states, see [sales tax on labor vs. materials](https://www.brix.so/learn/sales-tax-on-labor-vs-materials).

## What is Florida's sales tax rate, and how do county surtaxes work?

"Florida's general state sales tax rate is 6%," according to DOR, with a few exceptions (for example, 6.95% on electricity). Many counties add a **discretionary sales surtax**, published each year on Form DR-15DSS. For real property work, DOR says to use the rate of the county where the consumer, usually the contractor, takes delivery of the materials. On a retail sale plus installation job, use the county where the work is done.

## Which Florida contractor licenses do you need?

Most building trades are licensed by the Department of Business and Professional Regulation (DBPR). The Construction Industry Licensing Board (CILB) covers general, building, residential, roofing, air conditioning, mechanical, plumbing, pool and other classes; electrical has its own board. A license number starting with **C** is certified and lets you "contract in any jurisdiction in the state." One starting with **R** is registered and limits you to the local jurisdictions where you met competency requirements.

**Florida contractor licenses by trade**

| Trade | Agency | License | Link |
| --- | --- | --- | --- |
| General / building / residential | DBPR, Construction Industry Licensing Board | Certified (CGC, CBC, CRC) or registered (RG, RB, RR) | [CILB](https://www2.myfloridalicense.com/construction-industry/) |
| Roofing | DBPR, CILB | Roofing contractor (CCC or RC) | [CILB](https://www2.myfloridalicense.com/construction-industry/) |
| HVAC | DBPR, CILB | Air conditioning Class A, B or C; mechanical | [CILB](https://www2.myfloridalicense.com/construction-industry/) |
| Plumbing | DBPR, CILB | Plumbing contractor (CFC or RF) | [CILB](https://www2.myfloridalicense.com/construction-industry/) |
| Electrical | DBPR, Electrical Contractors' Licensing Board | EC (certified), ER (registered), EF (alarm) | [ECLB](https://www2.myfloridalicense.com/electrical-contractors/) |
| Landscaping, lawn care | No CILB class found | Check with your county and city | Check with the department |

_Sources: DBPR CILB and ECLB pages, verified 2026-10-19._

Section 489.103(9) of the Florida Statutes exempts work "of a casual, minor, or inconsequential nature in which the aggregate contract price for labor, materials, and all other items is less than $2,500." The exemption doesn't apply to work that's part of a larger job, jobs split up to dodge the limit, or anyone who "advertises that he or she is a contractor." Unlicensed contracting also puts your right to get paid at risk; see our [contractor license guide](https://www.brix.so/learn/contractor-license).

**Local licensing:** registered contractors depend on local competency cards, and counties and cities can charge a **local business tax** for the privilege of doing business there (Fla. Stat. § 205.032). Check the county tax collector and the building department where you work.

## Does Florida have a state income tax for contractors?

Not for individuals. The Florida Constitution (Art. VII, § 5) bars a state tax on the income of residents beyond a federal credit offset. If you run as a sole proprietor, a single-member LLC or another pass-through, there's no Florida return on your business profit. You still owe federal income tax and self-employment tax, so plan [quarterly estimated taxes](https://www.brix.so/learn/quarterly-estimated-taxes-for-contractors) and use the [quarterly estimated tax calculator](https://www.brix.so/tools/quarterly-estimated-tax-calculator).

**Corporations** (and LLCs taxed as corporations) pay Florida corporate income tax at **5.5%** for tax years beginning on or after January 1, 2022, after an exemption DOR lists as "$50,000 as of December 31, 2015." Confirm the current exemption with DOR. Estimated payments are required if the corporation "owes more than $2,500 in Florida corporate income tax annually." Ask your CPA whether an S corporation election makes sense for you.

## When do Florida contractors need workers' comp?

Construction businesses need coverage with **one or more employees**, and the Division of Workers' Compensation (Department of Financial Services) counts business owners who are corporate officers or LLC members toward that number. Non-construction employers need coverage at **four or more** employees. Owners can opt out for themselves through an exemption, but limits on construction officer exemptions aren't spelled out on the coverage page, so check with the Division. DBPR licensees also need workers' comp or an exemption to keep a license in good standing. More in [workers' compensation for contractors](https://www.brix.so/learn/workers-compensation).

## What local taxes should Florida contractors watch?

- **County surtax** on your materials, based on where you take delivery (real property jobs) or where you work (retail sale plus installation).
- **Local business tax receipts** from counties and cities under chapter 205.
- **Permit and impact fees** set by local building departments. These aren't taxes, but they belong in your bid.

> **Example: one remodel, two contract structures (illustrative)**
>
> A Tampa remodeler quotes $18,000 for a bath: $6,000 of materials and $12,000 of labor.
>
> **Lump sum:** the remodeler pays 6% state tax plus county surtax on the $6,000 at the supply house and invoices $18,000 with no tax line. That tax is a cost, so it should be in the price.
>
> **Retail sale plus installation:** the remodeler lists and prices the $6,000 of materials before work begins, buys them with a DR-13, and charges tax on the materials on the invoice. Labor isn't taxed either way.

## Neighboring state guides

Working across state lines? Compare [Georgia](https://www.brix.so/taxes/georgia), where income tax applies, [Alabama](https://www.brix.so/taxes/alabama), and [Texas](https://www.brix.so/taxes/texas), the other big no-income-tax state, where residential vs. nonresidential decides whether labor is taxed.

BRIX tracks your licenses, insurance certificates and permits and flags renewals before they lapse, so a DBPR renewal or a workers' comp exemption doesn't expire mid-job. Quotes and invoices keep materials and labor on separate lines, which helps when a job is written as a retail sale plus installation. Your CPA still decides how to treat the tax.

- [Compliance and permit tracking](https://www.brix.so/#use-cases): Tracks licenses, safety documents and permits and flags renewals before they lapse.
- [Quotes and estimates](https://www.brix.so/features/quotes-estimates): Builds accurate quotes on site and follows up on every open estimate.
- [Invoicing and payments](https://www.brix.so/features/invoicing-payments): Turns finished jobs into invoices and politely chases unpaid ones until the money is in your account.

## Frequently asked questions

### Do contractors charge sales tax in Florida?

Usually not on real property work. Under lump-sum, cost-plus, fixed-fee or time-and-materials contracts, the contractor is the final consumer and pays tax on materials to suppliers. Only under a retail sale plus installation contract does the contractor charge the customer tax, and then only on the materials.

### Is labor taxable in Florida?

Labor to improve or repair real property generally isn't taxable in Florida. Labor to repair tangible personal property is taxable when parts are used, because DOR says to charge tax on labor and materials in that case. Labor-only repairs of personal property aren't taxable.

### Does a Florida contractor need a sales tax number?

Not usually, if you only do real property contracts. DOR says contractors shouldn't register unless they fabricate items or also sell at retail. If you do retail sale plus installation jobs or sell materials over the counter, you must register as a dealer and collect tax.

### How much work can you do without a contractor license in Florida?

Florida exempts casual, minor work where labor, materials and everything else total less than $2,500. The exemption doesn't cover work that's part of a bigger project, jobs split up to stay under the limit, or anyone who advertises as a contractor. Electrical, plumbing and similar trade work typically needs a license regardless.

### Does Florida have a state income tax on contractors?

Florida has no personal income tax, so sole proprietors and pass-through owners don't file a state income tax return on business profit. Corporations pay Florida corporate income tax at 5.5% for tax years beginning on or after January 1, 2022. Federal income and self-employment tax still apply.

### Do I need workers' comp for one employee in Florida?

If you're in construction, yes. Florida requires construction employers with one or more employees to carry workers' comp, and corporate officers and LLC members count. Owners can apply for an exemption for themselves. Non-construction businesses need coverage at four or more employees.

### What's the difference between a certified and registered Florida license?

A certified license, with a number starting with C, lets you contract anywhere in Florida. A registered license, starting with R, is valid only in the local jurisdictions where you met the competency requirements. Both are issued through DBPR.

## Related

- [Do Contractors Charge Sales Tax on Labor or Materials?](https://www.brix.so/learn/sales-tax-on-labor-vs-materials)
- [What Is Use Tax for Contractors?](https://www.brix.so/learn/use-tax-for-contractors)
- [What Is a Contractor License?](https://www.brix.so/learn/contractor-license)
- [What Is Workers' Compensation Insurance?](https://www.brix.so/learn/workers-compensation)
- [Quarterly Estimated Taxes for Contractors: How They Work in 2026](https://www.brix.so/learn/quarterly-estimated-taxes-for-contractors)
- [Quarterly Estimated Tax Calculator for Self-Employed Contractors (2026)](https://www.brix.so/tools/quarterly-estimated-tax-calculator)
- [Georgia Contractor Taxes and Licensing: Sales Tax, Licenses and Income Tax](https://www.brix.so/taxes/georgia)
- [Alabama Contractor Taxes and Licensing: Materials Tax, Licenses and Workers' Comp](https://www.brix.so/taxes/alabama)
- [Texas Contractor Taxes and Licensing: Labor, Materials, Franchise Tax and Licenses](https://www.brix.so/taxes/texas)
- [Self-Employment Tax Calculator (2026)](https://www.brix.so/tools/self-employment-tax-calculator)

## Sources

- [Florida DOR — GT-800067, Sales and Use Tax on Construction, Improvements, Installations and Repairs](https://floridarevenue.com/Forms_library/current/gt800067.pdf) (checked 2026-10-19)
- [Florida DOR — Sales and Use Tax (6% state rate, discretionary sales surtax)](https://floridarevenue.com/taxes/taxesfees/Pages/sales_tax.aspx) (checked 2026-10-19)
- [Florida DOR — Corporate Income Tax (5.5%, estimated tax threshold)](https://floridarevenue.com/taxes/taxesfees/Pages/corporate.aspx) (checked 2026-10-19)
- [DBPR — Construction Industry Licensing Board](https://www2.myfloridalicense.com/construction-industry/) (checked 2026-10-19)
- [DBPR — Electrical Contractors' Licensing Board](https://www2.myfloridalicense.com/electrical-contractors/) (checked 2026-10-19)
- [Florida Statutes § 489.103, Exemptions ($2,500 minor work)](https://www.leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0400-0499/0489/Sections/0489.103.html) (checked 2026-10-19)
- [Florida Statutes § 205.032, Local business tax (counties)](https://www.leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0200-0299/0205/Sections/0205.032.html) (checked 2026-10-19)
- [Florida Constitution, Art. VII, § 5 (no income tax on natural persons)](https://www.leg.state.fl.us/statutes/index.cfm?submenu=3) (checked 2026-10-19)
- [Florida DFS Division of Workers' Compensation — Coverage Requirements](https://www.myfloridacfo.com/division/wc/employer/coverage-requirements) (checked 2026-10-19)

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Written by BRIX Editorial Team. Last updated 2026-10-19. General information, not tax, legal or financial advice.
Canonical: https://www.brix.so/taxes/florida