Yes. Florida allows the full federal §168(k) Year-1 bonus depreciation deduction on the state return with no add-back. STR investors get 100% of the federal deduction at both federal and state levels.
Statute citation and primary source
Governing statute: Fla. Const. Art. VII, §5 (no individual income tax). For corporate returns, F.S. §220.13(1)(e) requires §168(k) add-back with 7-year subtraction recovery.
Primary source (Florida DOR): https://floridarevenue.com/taxes/tips/Documents/TIP_25C01-01.pdf
Add-back mechanics for STR investors
For individuals, Florida has no personal income tax — the federal §168(k) deduction is the entire benefit ($55,500 at 37% on a $150,000 deduction). For C-corp STR entities filing Form F-1120, Florida requires §168(k) add-back with a 1/7 annual subtraction over 7 years (applies to assets placed in service before January 1, 2027 under current statute). Most STR investors hold in disregarded LLCs or S-corps and pay no FL entity-level tax on the property income.
Worked example: $750K short-term rental
Assume a $750,000 STR with a 22% bonus-eligible % — a typical median for the DepreciMax 50-market Study — producing a $165,000 federal §168(k) Year-1 deduction.
- Federal tax savings at 37% bracket: $165,000 × 37% = $61,050
- Florida state tax savings: $0 (no individual income tax)
- Total Year-1 savings: $61,050 (all federal)
For individuals, the federal deduction stands alone. Florida's absence of a personal income tax means neither the deduction nor any state add-back applies to STR investors filing personally.
What this means for your STR purchase decision
If you're comparing candidate short-term rentals in Florida or considering an out-of-state purchase, the state's conformity status materially affects your Year-1 economics. Florida's full conformity is a plus for the deal.
DepreciMax's state conformity tool lets you plug in a federal §168(k) deduction and see the full state impact for any of the 50 states plus DC — and our property search ranks active STR listings by their estimated Year-1 bonus depreciation potential.
Screen your Florida STR candidates before you make an offer
DepreciMax analyzes any listing address and returns a first-year bonus depreciation estimate — factoring in Florida's conformity status and top marginal rate.
Search a Market — Free →How this page is maintained
Every field on this page — conformity status, add-back percentage, top marginal rate, statute citation, primary-source URL — is pulled from the DepreciMax state conformity dataset (CC BY 4.0 licensed), which is verified against Florida's Department of Revenue on a quarterly cadence. The verified-as-of date above reflects the last time this specific state was cross-checked against a primary source. If you spot an inaccuracy, email [email protected] and we'll re-verify within 48 hours.
Not tax advice. This page is educational research. Consult a qualified CPA before making tax-driven purchase decisions. Rates and rules change; verify against the primary source linked above before filing.