Florida Sales Tax Penalties 2026

Late Filing Penalty

If you file your Florida sales tax return after the 20th of the month following the reporting period, you'll face a late filing penalty:

• Amount: 10% of the tax due or $50, whichever is greater
• Minimum: $50 even if no tax is due
• When it applies: Returns filed after the 20th

Late Payment Penalty

If you file on time but pay late, or pay less than the full amount due:

• Amount: 10% of the unpaid tax
• Stacks with late filing: Both penalties can apply if you file and pay late
• Partial payments: Penalty applies to the unpaid balance

Interest on Unpaid Tax

Interest accrues on all unpaid sales tax from the original due date:

• Rate: Floating rate set by Florida DOR (currently ~7% annually)
• Calculation: Daily compounding on unpaid balance
• No cap: Interest continues until the balance is paid in full
• Cannot be waived: Unlike penalties, interest is generally not abated

Failure to Collect Penalty

The most severe penalty applies when you should have collected sales tax but didn't:

• Amount: 100% of the uncollected tax
• Personal liability: Business owners can be personally liable
• Look-back period: Florida can assess back taxes for up to 3 years
• Plus interest: Interest accrues from when tax should have been collected

Criminal Penalties

In serious cases, Florida may pursue criminal charges:

• Willful failure to collect: Third-degree felony
• Fraud: Additional penalties and potential imprisonment
• Tax evasion: Prosecuted under Florida criminal statutes

Criminal penalties are rare and typically reserved for egregious cases involving intentional fraud or large amounts of uncollected tax.

How to Avoid Penalties

1. Register promptly: As soon as you establish nexus, register with the Florida DOR
2. File on time: Mark all due dates on your calendar and set reminders
3. Pay in full: Always pay the full amount due with your return
4. Use correct rates: Verify you're collecting the right rate including local taxes
5. Keep good records: Document exempt sales and marketplace transactions
6. Monitor your threshold: Track Florida sales to know when you cross $100,000

Requesting Penalty Abatement

You may request penalty abatement if you have reasonable cause:

Valid Reasons for Abatement

• Death or serious illness of the taxpayer or immediate family
• Natural disaster or casualty
• DOR error or incorrect advice from DOR
• First-time offense with good compliance history

How to Request Abatement

1. Pay the tax and interest in full (penalties can be addressed separately)
2. Submit a written request to the Florida DOR
3. Explain the circumstances that caused the late filing or payment
4. Include any supporting documentation
5. Reference your good compliance history if applicable

Note that interest cannot typically be abated, even if penalties are waived.

Voluntary Disclosure Agreement

If you have past nexus exposure in Florida, consider a Voluntary Disclosure Agreement (VDA):

• Limited look-back period (typically 3-4 years instead of longer)
• Potential penalty waiver
• Good faith effort recognized by the state
• Must be initiated before Florida contacts you about an audit

VDAs are negotiated with the Florida DOR and can significantly reduce your total liability.