Florida imposes no personal income tax. For individual STR investors (the vast majority — sole proprietors, single-member LLCs, S-corps, partnerships), the federal §168(k) bonus depreciation deduction flows through with zero state modification and zero add-back. Only C-corporations filing under Ch. 220 decouple: Fla. Stat. §220.13(1)(e)(1) requires adding back federal bonus and then recovering it ratably over 7 years. See how Florida stacks against every other jurisdiction in our all-50-states conformity guide.
Modeled on a $150,000 federal §168(k) deduction. Individual figures apply to sole proprietors, LLCs, S-corps, and partnerships.
Why Florida Individuals Take the Full Federal Deduction
Florida is one of nine US jurisdictions with no personal income tax at all. Article VII, Section 5 of the Florida Constitution flatly prohibits the levy of a state income tax on natural persons. There is no Florida return to file for individual STR income, so there is no state-level modification to the federal §168(k) deduction — the Year-1 write-off you claim on your federal Form 1040, Schedule E is exactly what you keep.
This is different from decoupled-with-income-tax states like California or Iowa, where residents claim the full federal deduction but then take a Year-1 state hit because the state return requires an add-back. In Florida there is no state return, so there is no add-back, no subtraction, no timing difference to track, and no state depreciation schedule to maintain.
The C-Corporation Wrinkle — Fla. Stat. §220.13
Florida corporate income tax under Ch. 220 applies to C-corporations at a 5.5% rate. Florida is a rolling IRC conformity state for corporate tax purposes but has explicitly decoupled from §168(k) since the original bonus depreciation legislation. Under Fla. Stat. §220.13(1)(e)(1), a Florida C-corp adds back federal bonus depreciation in the year claimed, then takes a subtraction of one-seventh (14.29%) of the add-back in each of the seven subsequent tax years. The timing loss recovers ratably; the total amount deducted is identical to federal, but the Year-1 cash-flow impact at the state level is negative.
The practical implication: nearly every STR investor holds property in a pass-through entity — sole proprietor, single-member LLC, multi-member LLC, S-corp, or limited partnership. All of those bypass Ch. 220 entirely. Only STR investors who elected C-corp taxation for their operating entity face the Florida add-back, which is a small minority of the STR investor population.
Worked Example — $150,000 Federal Deduction on a Destin STR
Assume an STR investor buys a fully-furnished Destin beach house, closes 2026, and identifies $150,000 in bonus-eligible 5-year and 15-year personal property and land improvements through a photo-analyzed cost-segregation report.
| Line | Federal | Florida (Individual) | Florida (C-Corp) |
|---|---|---|---|
| Year 1 §168(k) deduction | $150,000 | $150,000 (no state return) | $0 (100% add-back under §220.13) |
| Year 1 tax savings @ 37% federal / 0% or 5.5% | $55,500 | $0 | -$8,250 timing hit |
| Years 2–8 recovery | — | — | 1/7 subtraction ($21,428) per year |
| Total lifetime deduction | $150,000 | $150,000 | $150,000 (recovered by Year 8) |
The individual STR investor comes out ahead versus the same investor in every income-tax state. On a $150,000 deduction, a Florida individual keeps the full $55,500 federal savings at 37% with no offsetting Florida state tax. That's the same federal savings a California investor gets — but the California investor also loses approximately $19,950 in Year-1 California tax that reverses over the MACRS life. Florida's zero-tax posture stacks a real dollar advantage on top of the federal §168(k) benefit. Run any Florida address to see the combined federal-and-state math on your specific listing.
Florida STR Markets Where Bonus Depreciation Compounds Fastest
The Year-1 bonus write-off is largest where the personal-property share of purchase price is highest. In Florida that concentrates in resort and beach markets with high-amenity, high-FF&E properties:
The 30A / Destin / Miramar Beach / Panama City Beach corridor — luxury beach houses commonly run 30–36% bonus-eligible on purchase price. Pool, hot tub, outdoor kitchen, screened porches, wine coolers, and full FF&E stack the 5-year and 15-year buckets. A $1.5M Rosemary Beach property with a private pool and complete FF&E can produce a Year-1 write-off in the $450k–$525k range.
The Kissimmee / Reunion / ChampionsGate vacation-home corridor near Walt Disney World — the STR investor sweet spot. Purpose-built 6+ bedroom vacation homes with in-home theaters, game rooms, private pools, and full furnishings frequently exceed 35% bonus-eligible. Many of these homes are professionally staged and marketed to hit exactly the tax profile investors want.
The Florida Keys (Key Largo through Key West) — smaller properties but very high finish quality. Bonus-eligible shares of 28–34% are typical, with land ratios lower than mainland Florida because of the tightly-constrained lot economics.
Naples, Sanibel, Anna Maria Island, and the Gulf Coast — vary widely. Turnkey furnished properties hit 30%+ bonus-eligible; unfurnished condos closer to 20–24%. This is exactly the classification band where DepreciMax's photo-analyzed report earns its keep — the difference between an eyeballed "high-amenity" and an itemized 34% bonus-eligible breakdown is $40K–$70K in Year-1 write-off on a $1M property.
The Statute Explained
Florida's approach to federal tax conformity is bifurcated. Individual STR income is exempt from state taxation under Fla. Const. Art. VII, §5, which prohibits any personal income tax without a constitutional amendment (Florida voters have repeatedly declined to authorize one). Corporate STR income falls under Ch. 220, which uses rolling IRC conformity as of the current tax year, but explicitly carves out bonus depreciation via §220.13(1)(e)(1). The corporate add-back has been in place through every iteration of §168(k) since 2002 and applied continuously through TCJA (2017), the CARES Act, and now the OBBBA restoration.
OBBBA (P.L. 119-21) restored 100% federal bonus for property acquired and placed in service after January 19, 2025. For Florida individuals that means the full 100% flows through federal with no state adjustment. For Florida C-corps it means the §220.13 add-back and 7-year subtraction schedule applies to the restored 100% amount, just as it did to the 60% bonus under TCJA phase-down and the 100% bonus under the original 2017 rules.
How Florida Compares to Other No-Income-Tax States
Florida sits in a small club: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming all impose no state income tax on individual STR pass-through income. The federal §168(k) result is identical across all nine — the full deduction flows through unimpeded.
Where these states differ is on the corporate side. Nevada, South Dakota, and Wyoming have no corporate income tax at all, so no bonus depreciation issue arises for any entity structure. Texas has a Franchise Tax (Margin Tax) that operates on gross receipts rather than income, so the depreciation deduction is largely irrelevant. Washington runs a Business & Occupation (B&O) Tax that is also gross-receipts-based. Only Florida (5.5%) and Tennessee (F&E Tax, 6.5%) impose a traditional corporate income tax with a bonus-depreciation add-back mechanism.
Use the state conformity tool to run Florida side-by-side with any other state at any federal deduction amount and marginal rate.
What This Means for Your Florida STR Purchase Decision
For an STR investor evaluating a 30A beach house, a Reunion vacation home, or a Key Largo waterfront property, Florida's zero-individual-tax posture is a pure win on the tax side. Two takeaways:
First, the federal Year-1 bonus deduction is fully preserved. On a $150,000 federal bonus deduction, a Florida individual keeps the full $55,500 federal Year-1 savings at 37% and pays nothing to the state of Florida. There is no timing hit to model, no recovery schedule to track, no basis adjustment to maintain — the state simply is not part of the depreciation math for individual investors.
Second, the true tax edge for a Florida STR investor comes from stacking the Year-1 §168(k) benefit against the state's zero-percent ongoing income tax on rental profits. Compared to a Colorado or Alabama investor who conforms fully to federal but still pays 4–5% state tax on residual STR profits each subsequent year, the Florida investor's after-tax return improves in every year of the holding period, not just Year 1.
Before writing an offer on any Florida STR placed in service after January 19, 2025, run the address on your property to get a line-item breakdown of the actual bonus-eligible share — the difference between an assumed 25% and an itemized 34% is real cash on a $1M+ purchase.
Analyze a specific Florida property
Run any Florida STR listing through DepreciMax's $99 property report — line-item finish classification closely calibrated to a formal cost seg study, includes state-specific conformity math.
Frequently Asked Questions
Does Florida conform to federal §168(k) bonus depreciation?
For individual STR investors, the question is moot — Florida imposes no personal income tax under Article VII, Section 5 of the Florida Constitution, so the federal §168(k) deduction flows through with no state modification. For C-corporations under Ch. 220, Florida decouples: Fla. Stat. §220.13(1)(e)(1) requires adding back bonus depreciation and then subtracting one-seventh of it in each of the following 7 tax years.
If I live in Florida, do I save more from the federal bonus deduction than someone in a decoupled state?
You save the same federal amount, but you don't lose the state timing hit that Iowa, California, or Wisconsin residents take on Year 1. On a $150,000 federal §168(k) deduction, a Florida individual keeps the full $55,500 federal savings at 37% with zero state offset. A California resident with the same deduction takes the same federal savings but forfeits ~$19,950 in Year-1 California tax savings that reverse across the MACRS life.
Can Florida STR income avoid all state tax entirely?
For individual owners and single-member LLCs treated as disregarded entities, yes — Florida imposes no personal income tax on STR income. Multi-member LLCs and S-corporations flow through similarly. Only Florida C-corporations (Ch. 220) pay the 5.5% corporate income tax and must apply the bonus depreciation add-back rule.
Does the Florida Documentary Stamp Tax or Sales Tax affect bonus depreciation?
No. Florida's Documentary Stamp Tax (transfer tax at closing) and the state Transient Rental Tax on STR nightly stays are separate excise taxes with no connection to income tax depreciation. They are cost-of-doing-business items that get deducted at the federal level like any other rental expense.
How does Florida compare to Texas, Tennessee, and other no-income-tax states?
The individual result is identical: Florida, Texas, Tennessee, Nevada, Washington, South Dakota, Wyoming, New Hampshire, and Alaska all impose no state tax on STR pass-through income, so the federal §168(k) deduction is preserved in full. On corporate returns each state has a different rule; Florida decouples for C-corps, Texas has a franchise tax (Margin Tax) that operates on gross receipts rather than income, and Nevada / Wyoming / South Dakota have no corporate income tax at all.
Which Florida STR markets benefit most from the 100% bonus restored under OBBBA?
High-amenity coastal and resort markets stack the largest bonus-eligible portion because the personal-property component (finishes, FF&E, pools, hot tubs, outdoor kitchens) tends to run a larger share of the total price. In Florida that concentrates in 30A, Destin, Panama City Beach, Miramar Beach, the Florida Keys, Naples, Anna Maria Island, and the Kissimmee / Reunion vacation-home corridor near Orlando's Disney complex. A furnished Panhandle rental commonly runs 30–36% bonus-eligible; a fully-appointed Reunion pool home can exceed 35%.
What's the Year-1 write-off on a $900,000 Florida STR under OBBBA?
As a Year-1 deduction, expect roughly $270,000 to $310,000 on a fully-furnished coastal STR at $900,000 purchase price, assuming a 30–35% bonus-eligible share and a low land ratio typical of Florida beach-adjacent lots. At a 37% federal marginal rate that translates to about $100,000 to $115,000 in cash tax savings for a Real Estate Professional or Materially Participating STR investor — with no Florida state offset.
Every state's §168(k) position, in one place
Interactive map, sortable table, and deep-dive guide for each of the 51 jurisdictions — post-OBBBA verified.
See the 50-state map →Florida authority: Fla. Const. Art. VII, §5 (prohibiting personal income tax); Fla. Stat. Ch. 220 (corporate income tax); Fla. Stat. §220.13(1)(e)(1) (bonus depreciation add-back with 7-year recovery); Florida Department of Revenue Corporate Income Tax guidance (floridarevenue.com). Federal authority: IRC §168(k), as amended by the One Big Beautiful Bill Act (P.L. 119-21) restoring 100% bonus depreciation for property acquired and placed in service after January 19, 2025. Nothing in this article is tax advice. Consult a CPA who specializes in real estate before making investment decisions based on state-conformity projections.