Florida Yacht Tax
One number explains most of why this industry is here: Florida caps state sales tax on a vessel at $18,000, whatever she cost. Here is how that works, and the four reliefs worth knowing about before you close.
The cap
Why a $3m Boat Pays What a $300k Boat Pays
Six percent, and never more than $18,000 all in. That ceiling covers the county discretionary surtax as well as the state tax. The surtax applies to the first $5,000 of the price and comes out of the $18,000, not on top of it.
| Purchase price | 6% uncapped | State tax actually due | Effective rate |
|---|---|---|---|
| $300,000 | $18,000 | $18,000 | 6% |
| $1,000,000 | $60,000 | $18,000 | 1.8% |
| $3,000,000 | $180,000 | $18,000 | 0.6% |
| $10,000,000 | $600,000 | $18,000 | 0.18% |
State tax shown; the county surtax on the first $5,000 sits inside the $18,000 rather than above it, so the total never exceeds the cap. Figures current for 2026. Tax law moves, and this page is a brokerage’s summary, not advice.
Four reliefs
Where the Rest of the Money Is
Each of these is worth real money and each has a condition that voids it. They are arranged before closing, by somebody who does this for a living.
Non-resident purchaser
An out-of-state buyer can buy a yacht in Florida without paying Florida sales tax, provided she is removed from the state inside the permitted period and the paperwork is filed correctly.
The conditionThe clock and the documentation are the whole exemption. Miss either and the liability lands anyway, with interest. The closing agent sets it up as part of the closing, before it happens rather than after.
Trade-in credit
Trade a boat in against the purchase and the tax is calculated on the difference, not on the full price.
The conditionWorth real money on a larger transaction, and a reason to raise a trade early. It changes how both sides of the deal are structured.
Commercial vessel
A yacht used exclusively for commercial purposes, charter among them, can be exempt from Florida sales tax entirely.
The conditionStrictly defined and well audited. “Exclusively” means what it says, and owner use is what usually breaks it.
Credit for tax paid elsewhere
Bought out of state and brought in? Florida gives credit for sales tax already paid to another state against its own use tax.
The conditionA higher rate elsewhere may cover it in full; a lower one leaves you the difference. When she enters Florida matters as much as where she was bought.
Every year
Registration, and What You Do Not Pay
Florida charges an annual registration by length, through the Fish and Wildlife Conservation Commission, from around $30 for the smallest vessels to over $400 for those 110 feet and above. Any boat used on Florida waters needs it.
Coast Guard documentation is the other half. It gives her an official number in the national registry, it is what a lender records a mortgage against, and it is effectively required for international waters. It does not replace the Florida sticker, so most documented yachts here carry both.
There is no annual property tax on a recreational yacht in Florida. That is not true of every state, and over a decade of ownership it is a larger number than the sales tax cap.
Straight answers
What Buyers Ask
How much sales tax will I pay on a yacht in Florida?
Six percent of the purchase price, and never more than $18,000 in total however much she cost. That $18,000 is the ceiling on everything: the Department of Revenue is explicit that it includes both the state tax and the county discretionary surtax, so the surtax comes out of the cap rather than on top of it. The surtax itself applies to only the first $5,000 of the price (in a one percent county that is $50), which leaves $17,950 of state tax and $18,000 all in. The cap is the point: a $300,000 boat pays the full six percent, while a $3m boat pays the same $18,000. An effective rate of six tenths of one percent. It is the single biggest reason boats close in Florida rather than wherever the buyer found them.
What if I buy the boat outside Florida?
Florida use tax applies at the same rate when you bring her in, and you get credit for sales tax already paid to another state. Pay a higher rate elsewhere and the credit may cover it entirely; pay a lower one and you owe Florida the difference. Timing matters too. There are provisions about how long a vessel must stay out of Florida after purchase to qualify for certain treatment, and getting that wrong is how buyers end up with a bill they did not expect.
Is there an exemption if I do not live in Florida?
Yes. The non resident purchaser exemption lets an out of state buyer purchase here without paying Florida sales tax, provided the vessel is removed from the state inside the permitted period and the documentation is filed correctly. It is valuable and it is unforgiving: the clock and the paperwork are not conditions attached to the exemption, they are the exemption. Miss either and the liability lands anyway, with interest, and it lands on the buyer rather than on anybody who advised them. It has to be set up before closing, not tidied up afterwards, because several of the steps happen at or before the moment title passes. In practice the closing agent handles it, as part of the closing rather than as a separate errand, and it is worth confirming at the offer that yours does this routinely. A maritime attorney is the right person for an unusual ownership structure and a CPA for how the purchase sits in your own tax position, but neither of them is who files this. We are brokers: we raise it at the offer because it is worth real money to an out of state buyer, and we will tell you who does it. The filing is not ours to make and the exposure is not ours to carry.
Does Florida charge annual property tax on a boat?
No. Florida does not levy an annual personal property tax on recreational yachts, which is a genuine advantage over the states that assess a boat every year and send a bill for as long as you own her. It is also the part of the picture people miss when they compare only the purchase tax: a one off capped at $18,000 against an annual charge that never stops are different things, and over a ten year ownership the difference can exceed the purchase tax several times over. What you do pay annually in Florida is registration, based on length, from around $30 for the smallest vessels to over $400 for those 110 feet and above. That is the whole of the recurring state charge on a recreational vessel. Dockage, insurance and maintenance are the real annual costs, and none of them is a tax.
Should she be USCG documented or state registered?
Documented, for most yachts of any size, and particularly if she is financed or ever leaves US waters. Federal documentation is a national registry held by the Coast Guard, and it is what lets a lender record a preferred ship's mortgage against her, which is why almost any financed purchase of size will require it. It also makes her easier to take foreign, since it is the evidence of nationality a foreign port expects, and it gives her a traceable ownership history that a buyer's title search will read when you come to sell. What it does not do is replace the Florida registration sticker if she is used on Florida waters, so most documented yachts here carry both, and the two are not alternatives. If she is not documented already, start the process early rather than in the week of closing.
Should I hold her in an LLC?
Many owners do, for liability and privacy. It also affects sales tax treatment, documentation eligibility and how a future sale is structured, so it is a decision to take with a maritime attorney and your tax adviser before closing rather than a formality afterwards. We are brokers, not tax advisers, and this is one of the places where the difference matters.
We Are Brokers, Not Tax Advisers
This page is a summary of how the Florida market works, current for 2026 and written by people who close transactions here every month. It is not tax advice. The reliefs above turn on deadlines and paperwork that are set up at the closing, and on your own tax position, which belongs with your CPA rather than with us. Tell us the shape of your purchase and we will raise what is worth raising and tell you who handles it. We take nothing from any of them.
Tell us the shape of your purchase
We close transactions here every month, so we know which of the reliefs above are likely to apply to a deal like yours and what the timing has to look like. Tell us where you are buying from, where she will be kept and roughly what you are spending, and we will tell you what is worth raising.
We are brokers, not tax advisers. We will not tell you what your tax position is, and we will tell you who does: the closing agent sets up the non resident exemption, and your own CPA handles how the purchase sits with the rest of your affairs. We take nothing from either.
Or call (954) 560-2811.