Is SaaS Taxable in Florida? 2025 Guide

Why Florida Doesn't Tax SaaS

Florida's approach hinges on the concept of "possession." Under Florida law, sales tax applies to tangible personal property. The Florida DOR has consistently held that when software is accessed remotely—without the customer receiving a copy or taking possession—no sale of tangible personal property occurs.

Technical Assistance Advisements (TAAs) like TAA 14A-014 confirm that SaaS accessed over the internet is not subject to Florida sales tax.

When Florida DOES Tax Software

• Physical media: Software delivered on CD, USB, or other tangible medium
• Downloaded software: Software downloaded with a permanent license where the customer "possesses" a copy
• Custom software on media: Even custom software is taxable if delivered on tangible media

Florida Economic Nexus

Florida enacted economic nexus effective July 1, 2021. The threshold is $100,000 in taxable remote sales to Florida customers. While this is relevant for any taxable products you sell, pure SaaS sales don't count toward this threshold since they're not taxable.

Why This Matters for SaaS Companies

Florida is a large market with no state income tax, making it attractive for both businesses and consumers. If you're a SaaS company selling to Florida:

• You do not need to collect Florida sales tax on SaaS subscriptions
• You likely do not need a Florida seller's permit if you only sell SaaS
• If you also sell taxable products (hardware, physical software), those are taxable