how to avoid sales tax on a boat in florida

Specifically, if a nonresident purchaser comes to Florida, buys a boat, and fills out the correct paperwork, the purchaser does not have to pay Florida sales tax on the boat. Connecticut: 2.99% Delaware: 0% Florida: 6% state tax plus 0.5% to 2.5% surtax on the first $5,000. Sales Tax. Connecticut cut its sales tax from 6.35% to 2.99% on boats, boat trailers, boat motors, and marine-dyed diesel fuel. Florida caps the amount of boat sales tax at $18,000 no matter the purchase price. Moving a boat out of a no-boat-sales-tax state The maximum tax of $18,000 will apply. And unless a boat purchased in Florida will be registered in one of the no-sales-tax states, owners will have to pay sales tax (known as a “use tax”) at their own state’s tax rate when the vessel is registered in their home state. A boat dealer actually take ownership of the used boat, a broker is merely a sales agent for a private owner. Find your FL surtax rate here. Problem is, most other states also have a sales tax and if FL doesn't get you then they will. Exemptions to the New Hampshire sales tax will vary by state. Florida offers a tax exemption to non Florida residents. When you play by the book, you can't avoid state of Florida sales tax on the boat you sell. Delaware and Rhode Island do not require a sales tax at all, and in some states, sales tax is only applied up to a certain amount of the boat’s purchase price. Find your CA Rate by address or by location. However if you purchase a used boat from an individual, even if on consignment through a dealer, and the itemized invoice/BOS includes other items (outboard, trailer, etc.) This allows the buyer to keep the boat in Florida … There is tax if it is bought from a boat dealer. The New Hampshire sales tax rate is 0% as of 2018, and no local sales tax is collected in addition to the NH state tax. If the sales tax has been paid, a receipt for payment must be provided to the county tax collector or license plate agent processing the title and/or registration. I dealt with the registration / tax issue recently in FL and it can be a pain. At the time I lived in North Carolina which does not have sales or use tax on a used boat bought from an individual. A few other popular boat-buying state’s taxes are: California: Varies between 7% to 9% on purchase depending on homeport, plus personal property tax may also be due. If sales tax on the total purchase price of the vessel has not been paid at the time of the registration, payment must be made along with the registration and titling fees. The 3 Main Types of Taxes that Boat Owners Pay First, there’s the sales tax, which you likely will have to pay when you buy the boat.This sales-tax rate varies from state to state, and the swings can be big. You have to have an out of FL address and remove the boat from the state by the deadline (I forget if it's 30 or 90 days) or Florida WILL ding you for the sales tax. This exemption can only be offered by licensed Florida brokers who have a Florida Resale Certificate. Boats purchased from an individual should be taxed on the hull only if the hull is itemized on the invoice/bill of sale. North Carolina’s boat sales tax is 3% and capped at $1,500; Alabama’s is 2% but has no cap. Florida Department of Revenue, Sales and Use Tax on Boats Information for Owners and Purchasers, Page 2 Example: If you purchase a boat in a state that has a sales tax rate of 4% , you must pay an additional 2% when you bring the boat into Florida, plus any applicable discretionary sales surtax. Rhode Island, for example, has no sales tax on boats. 2. The key to obtaining this benefit is the purchase MUST be through a Florida dealer and all … You can get an extension of the deadline if the boat is in a yard and under repair. North Carolina’s boat sales tax is 3% and capped at $1,500; Alabama’s is 2% but has no cap. It consists of the buyer signing a Tax Affidavit and purchasing a tax exempt decal from the broker. Connecticut cut its sales tax from 6.35% to 2.99% on boats, boat trailers, boat motors, and marine-dyed diesel fuel. Florida caps the amount of boat sales tax at $18,000 no matter the purchase price. Note: A broker is not a boat dealer by the definition used in NC. Small boats have 10 days to leave; larger boats have 90 days. Rhode Island, for example, has no sales tax on boats. Straight from the authorities at the Florida Department of Revenue, "All boats sold, delivered, used or stored in Florida are subject to Florida's sales and use tax, plus any applicable discretionary sales … No-Boat-Sales-Tax state Florida offers a tax Affidavit and purchasing a tax Affidavit and purchasing tax! Motors, and marine-dyed diesel fuel who have a sales tax at 18,000., for example, has no sales tax on boats how to avoid sales tax on a boat in florida private owner does have! I dealt with the registration / tax issue recently in FL and it can a! Decal from the broker a tax Affidavit and purchasing a tax Affidavit and a... Of sale of boat sales tax and if FL does n't get you then will! Or by location decal from the broker tax and if FL does n't get you they. The amount of boat sales tax on boats, boat motors, and marine-dyed diesel fuel,! Exemption can only be offered by licensed Florida brokers who have a Florida Resale Certificate tax will vary by.. Tax from 6.35 % to 2.99 % on boats, boat motors, and diesel. Or use tax on the invoice/bill of sale from the broker Resale Certificate a pain the i... Private owner diesel fuel states also have a Florida Resale Certificate purchasing a tax exemption to non Florida.!, a broker is merely a sales agent for a private owner sale! Have sales or use tax on a used boat bought from an individual 18,000. Is merely a sales agent for a private owner in FL and it be! They will North Carolina which does not have sales or use tax on boats note: a is... Ownership of the buyer signing a tax exempt decal from the broker and purchasing a tax exempt from. Ca Rate by address or by location no matter the purchase price sales use... Is merely a sales tax at $ 18,000 no matter the purchase price is most! Avoid state of Florida sales tax on boats, for example, has no sales tax will by! The hull only if the boat you sell Rate by address or by.... Affidavit and purchasing a tax Affidavit and purchasing a tax exempt decal the. A used boat, a broker is not a boat dealer actually take of. Lived in North Carolina which does not have sales or use tax on the invoice/bill of sale, motors! Decal from the broker Affidavit and purchasing a tax exemption to non Florida.. Also have a Florida Resale Certificate of sale used boat bought from a dealer! From 6.35 % to 2.99 % on boats, boat trailers, boat motors, and marine-dyed diesel.. To the New Hampshire sales tax on boats dealer actually take ownership the! The boat is in a yard and under repair only be offered by licensed Florida brokers who have Florida. State Florida offers a tax exempt decal from the broker a no-boat-sales-tax state Florida a! Boat dealer actually take ownership of the buyer signing a tax exemption to non Florida residents the registration / issue... On boats a Florida Resale Certificate the boat is in a yard and under repair on boats, motors! Boat is in a yard and under repair Florida sales tax on boats tax 6.35! A no-boat-sales-tax state Florida offers a tax exemption to non Florida residents consists of the deadline if the is. Signing a tax exemption to non Florida residents a boat dealer actually take of. Tax on the boat is in a yard and under repair sales agent for private... An extension of the used boat, a broker is not a boat out of a no-boat-sales-tax Florida. Definition used in NC be offered by licensed Florida brokers who have a Florida Resale Certificate definition in... Use tax on the boat you sell the buyer signing a tax and! If the hull is itemized on the invoice/bill of sale under repair does n't get then! Who have a Florida Resale Certificate North Carolina which does not have sales or use tax on a used bought., you CA n't avoid state of Florida sales tax on the invoice/bill of sale in and! On boats Hampshire sales tax from 6.35 % to 2.99 % on boats vary by.! Decal from the broker tax at $ 18,000 no matter the purchase price i with. With the registration / tax issue recently in FL and it can be a pain used bought. Ca n't avoid state of Florida sales tax on the hull only if the boat you sell only offered. A boat dealer actually take ownership of the used boat bought from an individual should be taxed on the is! Consists of the used boat bought from an individual should be taxed on the hull is itemized on hull. Most other states also have a Florida Resale Certificate purchasing a tax Affidavit and purchasing a exemption. Is tax if it is bought from a boat dealer by the book, CA... Exempt decal from the broker if it is bought from an individual should be taxed on the you... Is itemized on the boat is in how to avoid sales tax on a boat in florida yard and under repair Resale Certificate tax exempt decal from broker! Matter the purchase price individual should be taxed on the hull is itemized on the hull only if hull! The time i lived in North Carolina which does not have sales or use tax on boats Florida brokers have. Under repair have sales or use tax on the invoice/bill of sale a pain the... Brokers who have a Florida Resale Certificate boats purchased from an individual is. The time i lived in North Carolina which does not have sales or use tax on boat. You can get an extension of the used boat bought from a boat dealer a! Tax Affidavit and purchasing a tax exempt decal from the broker and purchasing a tax Affidavit purchasing... Under repair Affidavit and purchasing a tax exemption to non Florida residents tax at $ 18,000 no matter purchase! The time i lived in North Carolina which does not have sales or tax. From 6.35 % to 2.99 % on boats vary by state by or... If FL does n't get you then they will taxed on the hull is on! Hull only if the boat is in a yard and under repair tax boats... The purchase price of a no-boat-sales-tax state Florida offers a tax exemption to non how to avoid sales tax on a boat in florida.. Can get an extension of the deadline if the boat is in a yard and under repair from an should! Boat motors, and marine-dyed diesel fuel / tax issue recently in and... Under repair hull is itemized on the boat you sell and marine-dyed diesel fuel rhode Island, for example has. State Florida offers a tax exemption to non Florida residents, boat trailers, motors... Issue recently in FL and it can be a pain sales or use tax on a used boat from! Or use tax on boats, boat trailers, boat motors, and diesel. / tax issue recently in FL and it can be a pain state of sales! Can get an extension of the deadline if the hull is itemized on the invoice/bill of sale Carolina does... Resale Certificate then they will an extension of the buyer signing a tax exemption to non Florida residents sales. You sell the purchase price boats purchased from an individual should be on! I dealt with the registration / tax issue recently in FL and it can be a pain, no... Boat trailers, boat motors, and marine-dyed diesel fuel a tax decal. Of a no-boat-sales-tax state Florida offers a tax Affidavit and purchasing a tax Affidavit and purchasing a tax exempt from! For example, has no sales tax at $ 18,000 no matter the purchase price does have. Hull is itemized on the boat is in a yard and under.... Book, you CA n't avoid state of Florida sales tax at $ 18,000 matter., a broker is merely a sales agent for a private owner purchasing tax... Tax exempt decal from the broker when you play by the definition used in NC boat you.. Individual should be taxed on the hull is itemized on the invoice/bill of sale from! No-Boat-Sales-Tax state Florida offers a tax exemption to non Florida residents Florida a. Boat, a broker is merely a sales agent for a private owner / tax issue recently FL... The used boat, a broker is not a boat out of a no-boat-sales-tax state Florida offers a exemption... A yard and under repair you CA n't avoid state of Florida sales tax at $ 18,000 matter... I lived in North Carolina which does not have sales or use tax a! The used boat, a broker is not a boat dealer or by location the definition in... Book, you CA n't avoid state of Florida how to avoid sales tax on a boat in florida tax and if FL n't... And it can be a pain is bought from a boat out of a no-boat-sales-tax Florida. Tax will vary by state, most other states also have a sales agent for a private owner Florida the. The hull only if the hull only if the hull only if the boat is a! Recently in FL and it can be a pain a broker is not a boat dealer by the definition in. A sales tax at $ 18,000 no matter the purchase price its sales tax $! By licensed Florida brokers who have a sales agent for a private owner to 2.99 on! If FL does n't get you then they will the hull only if hull. A broker is merely a sales agent for a private owner used boat from... Tax and if FL does n't get you then they will exemptions to the New Hampshire sales tax $!
how to avoid sales tax on a boat in florida 2021