The US has a rather complex tax system. There are federal, state and local taxes.

Income tax

Florida along with Alaska, Nevada, New Hampshire, South Dakota, Texas, Tennessee, Washington, and Wyoming does not impose a personal income tax on its residents. Florida residents do still have to pay federal income tax on any US-earned income, including any dividends or interest earned. The federal income tax rate is dependent on a person's salary and ranges from zero to 35%. Federal income tax is taken out of your paycheck each month, but you must still file a tax return with the IRS at the end of the year to determine whether or not you have paid the correct amount throughout the year. If you have paid too much, you will receive a tax refund. If you have paid too little, you will have to pay the IRS.

Payroll taxes

In addition to federal income taxes, all US employees pay Social Security tax (this will appear on your pay stub as FICA, which stands for the Federal Insurance and Contributions Act), Medicare tax, and unemployment tax. If you are self-employed, you will pay self-employment tax; this can be paid yearly or quarterly, but it will be your responsibility to make payments as the government will not automatically deduct taxes from your paycheck each month because you will technically be paying yourself.

Property tax

Property tax is an annual tax on personal property, such as real estate, vehicles or valuable art. Florida's property tax rates vary by county and can be high, but property owners can gain a homestead tax exemption for their primary residence. Additional exemptions are available to homeowners age 65 and over.

City and county taxes

Cities and counties also levy taxes. These taxes are used to pay for roads, schools, parks, and other services. If you reside within the city limits, you will have to pay city and county taxes; people who live outside the city limits only have to pay county taxes.

Sales tax

Florida's sales tax rate is 6%. Sales tax is imposed on the sale or rental of certain goods or services. There are exemptions to the sales tax, such as groceries and prescription drugs.

Other taxes

Many people are unaware that Florida imposes a use tax on any out-of-state purchases that are brought to or delivered into the state. Examples of items for which the use tax applies are Internet purchases, mail-order catalog purchases or purchases made in another country. The use tax does not apply if you paid the seller 6% or more in sales tax at the time of purchase (tax paid in foreign countries does not count). If you find that you owe use tax, it is your responsibility to file and pay on the first day of the month following the quarter in which the purchases were made.

Some counties in Florida may levy a tourist development tax, in which hotel rooms are charged up to an additional 6% on top of the sales tax rate.

Other taxes include corporate income tax, capital gains tax, estate tax, and gift tax, among others.

More information about federal taxes can be found at the web site for the Internal Revenue Service. The Florida Department of Revenue has specific information about Florida taxes.