Florida Boat Sales Tax

Sales tax is one of the largest one-time costs of buying a boat in Florida. The state has specific rules for boats, including a cap on the amount of tax per boat and different treatment for dealer and private sales. This guide summarizes the main rules. Tax law is complex and changes, so confirm details with the Florida Department of Revenue or a tax professional. We do not provide tax advice.

The basics

Florida's state sales tax rate is 6 percent, and most counties add a discretionary sales surtax. Sales tax applies to the purchase of boats, whether bought from a dealer or a private seller, subject to the rules below. If tax was not collected at the time of sale, it is due when you title and register the boat with the county tax collector, as FLHSMV explains on its vessel titling page.

The $18,000 cap

Florida law caps the state sales and use tax on the sale of a boat at $18,000 per boat. At 6 percent, the cap applies to boats priced at about $300,000 or more. The cap was adopted to keep large boat sales in Florida competitive with other states. Check the current statute and Department of Revenue guidance for how the cap applies to your purchase.

Local discretionary surtax

Florida's local discretionary sales surtax generally applies only to the first $5,000 of the sales price of a single item of tangible personal property. For a boat, that typically limits the surtax to a small amount relative to the price. Surtax rates vary by county, and the county used is generally where the boat is delivered or registered; check Department of Revenue guidance.

Dealer sales vs. private sales

FLHSMV's guidance explains that when a vessel is purchased through a dealer, sales tax is due on the vessel, motor (inboard or outboard), trailer and all accessories. When purchased through a casual sale with no dealer involved, sales tax is due on the vessel, inboard motor and trailer, while an outboard motor and accessories may be exempt if they are separately itemized and priced on the bill of sale. This makes a detailed bill of sale important in private sales. Price items honestly; misstating prices to reduce tax can lead to penalties.

Trailers

Boat trailers are subject to sales tax and are registered separately as vehicles. In a package sale, list the trailer separately on the bill of sale.

Boats bought outside Florida

If you buy a boat outside Florida and bring it into the state, Florida use tax may apply, with credit generally allowed for sales tax legally paid to another state. Florida has specific rules about how long a boat can be in the state, for what purposes, before use tax is due, and exemptions for boats brought in for repairs or certain other purposes. The Department of Revenue publishes guidance on boats, including rules for nonresidents and for boats temporarily in Florida. Read it before relying on any exemption.

Nonresident purchasers

Florida has provisions allowing certain nonresidents who buy boats in Florida and remove them from the state within a specified time to avoid Florida sales tax, subject to requirements such as permits and documentation. These rules are detailed; dealers and brokers familiar with them can help, but confirm with the Department of Revenue.

Documented vessels

Federally documented vessels are not titled by Florida, but they still must be registered if used in Florida, and sales and use tax rules still apply.

Paying the tax

If you buy from a Florida dealer, the dealer typically collects the tax. In a private sale, you pay the tax when you title and register at the county tax collector. Bring the bill of sale and proof of any tax paid elsewhere.

Example

Suppose you buy a used boat from a private seller for $40,000, including a trailer valued at $3,000 and a separately itemized outboard valued at $15,000. Based on FLHSMV's guidance, tax would generally be due on the hull and trailer, while the separately itemized outboard may be exempt in a casual sale. The state rate applies to the taxable amount, and local surtax applies within its limits. This is a simplified illustration; your situation may differ. Run financing numbers with the boat loan calculator.

Common mistakes

• Not itemizing the outboard and accessories in a private sale.
• Assuming no tax is due on a private sale.
• Ignoring use tax on boats bought out of state.
• Misstating the price on the bill of sale.
• Forgetting the trailer.

Other one-time costs at purchase

Along with sales tax, budget for title and registration fees (see Florida registration and title fees), insurance, a survey for used boats (see survey costs), and initial equipment such as safety gear and dock lines.

Records to keep

• Bill of sale with itemized prices
• Proof of tax paid
• Title and registration documents
• Survey report
• Any Department of Revenue forms or permits

Frequently asked questions

Is there sales tax on a used boat from a private seller in Florida?

Generally yes. Tax is due on the vessel, inboard motor and trailer, with possible exemption for separately itemized outboards and accessories, according to FLHSMV guidance.

What is the maximum sales tax on a boat in Florida?

Florida caps the state sales and use tax at $18,000 per boat. Local surtax rules are separate.

Do I pay sales tax again if I paid in another state?

Florida generally gives credit for sales tax legally paid to another state, so you may owe only the difference if Florida's tax is higher. Check Department of Revenue guidance.

Where can I get official answers?

The Florida Department of Revenue publishes guidance and answers questions about boat sales and use tax. County tax collectors handle collection at registration.

Why this matters for your budget

On a $60,000 boat, state sales tax at 6 percent is $3,600 before any surtax, a meaningful amount to plan for. Financing it adds interest. Paying tax and fees in cash, if possible, reduces total cost. Include tax in your out-the-door price when comparing dealers.

Dealer fees and tax

Dealer fees such as documentation or preparation fees may be taxable. Ask for an itemized out-the-door quote showing the tax calculation.

Trade-ins

Florida generally allows trade-in value to reduce the taxable price when you trade a boat in to a dealer as part of a purchase, subject to rules. Confirm with the dealer and the Department of Revenue how your trade-in is treated, and make sure it appears clearly on the sales documents.

Questions to ask before you buy

• Is the quoted price before or after tax?
• How is the outboard listed on the bill of sale in a private sale?
• Was tax paid by the seller when they bought the boat? (This does not change your obligation, but it helps with records.)
• If the boat is coming from another state, what tax was paid there, and do you have the receipt?
• Will the boat be registered in Florida, and in which county?

Getting these answers in writing before closing avoids surprises at the tax collector's counter.

Florida tax on repairs and storage

Sales tax does not stop at the purchase. Florida sales tax generally applies to many marine repairs, parts and dockage rentals, so your yearly operating costs include tax as well. Ask service providers and marinas whether quotes include tax. For yearly budgeting, see the ownership cost calculator and the marina slip calculator.

Is sales tax due on a boat I inherit or receive as a gift?

Transfers without a sale price, such as inheritances and genuine gifts, are often treated differently from sales, but documentation requirements apply. Ask the county tax collector what forms are needed, and confirm tax treatment with the Department of Revenue.