Do you know which Florida tax laws are changing in 2026?

Although Florida is one of the most tax-friendly states to live in, there are new tax rules coming in 2026 and changes to existing ones that could impact you.

To avoid a costly tax surprise from these adjustments, we’ve outlined the most important ones and highlighted how you can prepare.

1. Federal Tax Provisions Expiring

In 2026, the Tax Cuts and Jobs Act of 2017 (TCJA) has several small business tax provisions ending or changing. These changes are being made to the qualified business income deduction, bonus depreciation laws, and individual tax brackets.

These changes will likely have the biggest impact on businesses structured as an LLC, partnership, or S-corporation since their taxable income will increase, and in turn, tax liabilities do too.

To protect yourself against this cost, review your company’s structure with a CPA and see if changing its designation is an option. If so, this updated classification could save you a significant amount come tax time.

2. Payroll and Contractor Classifications

We’ve seen an increase of worker classification scrutiny by the Florida Department of Revenue this year. Given this heightened attention, be sure to review how employees are being labelled and if you have filed it correctly on your forms.

We recommend going through your employee records at the start of the new year to ensure all your employee designations meet Florida requirements and that your payroll software reflects the same.

3. Adjusted Depreciation Rules

Under current depreciation laws, businesses can deduct 60% of qualifying property costs in 2025 through bonus depreciation. But, by 2026 this number will drop to 40% and will continue to decline annually.

Owners will need to make the most of this deduction while it is still available, so any purchases of equipment, office assets, or vehicles should try to be done before the end of 2025 to take advantage of the higher depreciation benefit.

4. Minimum Wage Increases

In 2026, Florida’s minimum wage is set to increase to $13 per hour and will continue to rise to $15 an hour under Amendment 2. This gradual increase is something owners need to keep in mind when planning for their year ahead since it will impact labor budgets, payroll taxes, and employee classifications.

To understand how this increase could impact your business, it is best to speak with an accountant or financial advisor who can assess your books and determine if you will need to adjust pricing or staffing to stay profitable.

5. Local Tax Adjustments

There may be changes coming to local tax laws that owners need to be aware of. Things like business license fees and utility costs are all impacted by the municipality and are usually increased to fund infrastructure or development projects in the area.

Regardless, these changes could impact your budget for the year, which is why you will need to check with your municipality’s website to confirm any updates.

Another option is to talk to a tax professional who will do the research for you and be able to see how the changes will impact your business. A professional will also be able to identify potential income opportunities and deductions that you might have missed applying for.

So, instead of being reactive to tax changes in 2026, contact us at A.P. Accounting and Tax Services for a proactive plan that gets you ready for the new year.

Call us at 407-328-5001 and a member of our team will be happy to speak with you today.

Image: Unsplash