Hillsborough County Sales Tax Rate Drops in 2025: Tax Tips from Kamish CPA Firm

Great news for businesses and consumers in Hillsborough County! Starting January 1, 2025, the county’s sales tax rate will decrease from 7.5% to 6.5% due to the temporary suspension of certain surtaxes. This change impacts businesses, shoppers, and tax planning strategies—so here’s what you need to know, along with expert tax tips from Kamish CPA Firm.

New Hillsborough County Sales Tax Rate

The new 6.5% combined sales tax rate includes:✅ Florida state sales tax – 6%✅ Local discretionary surtax – 0.5% (School Capital Outlay Surtax)

The 0.5% Indigent Care Surtax and 0.5% Local Government Infrastructure Surtax are temporarily suspended, reducing the total sales tax by 1%.

Why Is the Tax Rate Changing?

This decrease follows a Florida Supreme Court ruling that invalidated a 1% transportation sales surtax collected between 2019 and 2021. To compensate for the overcollection, Hillsborough County is pausing certain surtaxes.

Tax Tips for Businesses 🏢

Kamish CPA Firm recommends proactive tax planning to adjust to the new rate. Here’s what business owners should do:

✔️ Update Point-of-Sale (POS) Systems – Ensure sales tax settings reflect the new 6.5% rate to avoid incorrect tax collection.

✔️ Review Contracts & Pricing – If your contracts or invoices include sales tax, update them to reflect the lower rate.

✔️ Understand Multi-County Tax Differences – If you operate in multiple Florida counties, be mindful that surrounding areas like Pinellas, Pasco, and Polk still have a 7% sales tax rate. Adjust pricing and sales strategies accordingly.

✔️ Monitor Future Tax Changes – This tax reduction is temporary. Stay informed about when surtaxes may be reinstated.

Tax Tips for Consumers 🛍️

For consumers, a lower sales tax means savings on everyday purchases and large transactions. Here’s how to maximize the benefit:

💰 Time Big Purchases Wisely – If you're planning to buy furniture, appliances, or a new car, doing so in early 2025 ensures you pay the lower tax rate.

📍 Shop Locally – With Hillsborough County’s 6.5% tax rate lower than surrounding counties, shopping within the county can save you money.

📜 Check Your Receipts – Ensure businesses are correctly applying the reduced tax rate starting January 1, 2025.

Special Sales Tax Rates in Florida

While Florida’s general sales tax rate is 6%, certain goods and services are taxed differently:

🔹 New mobile homes – 3%🔹 Amusement machine receipts – 4%🔹 Commercial property rentals – 2%🔹 Electricity – 6.95%

Businesses should apply the correct rate to avoid tax penalties.

How Long Will This Tax Cut Last?

The Florida Department of Revenue has not set an end date for this temporary suspension. Kamish CPA Firm advises businesses and consumers to monitor local tax policy updates to stay prepared for future rate changes.

Final Thoughts

Hillsborough County’s sales tax reduction in 2025 presents savings opportunities for both businesses and consumers. Whether you're adjusting pricing strategies or making major purchases, understanding the tax implications can help you make informed financial decisions.

For personalized tax guidance, reach out to Kamish CPA Firm for expert advice.

📞 Contact Kamish CPA Firm today 813-560-1832!