Governor Ron DeSantis likes to say Florida is number one in many ways, but that's debatable — for example, the state's No. 1 education ranking comes from trade publication U.S. News & World Report, whose methodology has been controversial.
But there is one area in which Florida ranks squarely among the worst: the state has the most regressive state and local tax structure in the nation.
That's the finding of the progressive Institute on Taxation and Economic Policy (ITEP), which ranks states every five years.
Florida, previously the third most unfair state, now surpasses all other states in unfairness, with those who can least afford it being taxed more heavily than those who can most afford it.
There, the poorest fifth of people under 65 (those earning less than $19,600) pay 13.2 percent of their household income in state and local taxes, while the richest fifth, with a median income of $3.2 million, pay just 2.7 percent, compared with the national average of 7.2 percent.
relentlessly exploit the poor
Florida taxes its poorest residents about five times more than its richest residents. Four other states tax them even more, but Florida generally has the worst inequality measures. This is because the state relies heavily on taxes on property and purchases and has no personal income or inheritance taxes.
Of the next nine worst-ranked states, five also have no personal income tax: Washington, Tennessee, Nevada, South Dakota, and Texas.
ITEP's analysis finds that Florida's taxes are generally regressive.
Families in the second income bracket (between $19,600 and $35,700, which includes those earning just $12 an hour, Florida's current minimum wage) pay 10.9% in state and local taxes — more than $1 for every $10 they earn, and four times more than the wealthiest people.
Middle-income Floridians (those making between $35,700 and $61,500 a year) pay an effective tax rate of 9.5%, 3.5 times the rate paid by the wealthiest households.
Those in the fourth bracket ($61,500 to $118,300) pay 8.4% in tax, then 6.4% from there up to $270,600, the next bracket (up to $735,700) pays 5% and even the wealthiest pay just 2.7%.
Gross Inequality
Tax rates are regressive across all categories, including property taxes, which are flat rates and have housing exemptions that are less favorable to the wealthiest homeowners, who pay them through rent.
The politicians and lobbyists behind these gross inequities would argue that the wealthy actually pay more in taxes, but that's beside the point. The right measure of tax burden and fairness is how it relates to an individual's income.
Florida’s tax system would no longer be regressive if the burdens were reversed or simply equalized. This is true in the 10 jurisdictions that ITEP rates as most fair: Washington, D.C., Minnesota, Vermont, New York, California, New Jersey, Maine, Massachusetts, New Mexico and Oregon. Each state has a personal income tax.
With a tax code that favors the wealthy, it's no wonder Florida's population is growing by an estimated 365,000 people per year.
PolitiFact backed up DeSantis' claim that Florida has the highest net in-migration rate of any state. His favorite example is California, which taxes its wealthiest residents at 12%, second only to New York. In both states, the poor and middle class are taxed roughly equally.
How the rich get richer
The “freedom” DeSantis praises appears to be freedom from fair taxation.
According to ITEP's study, only seven states have the lowest tax burden for the poorest people, while 41 states have the lowest tax burden for the wealthiest people.
This partly explains why the rich get richer — people see it and grow frustrated with politics — but rarely take for granted the responsibility of state policies that exacerbate inequality.
Florida's sales tax is primarily applied to consumer goods, which is beneficial for the wealthy. Services such as advertising, estate planning, landscaping and other professional fees are exempt.
Both governors tried to make Florida's tax system fairer by taxing most services, but neither succeeded.
Martinez's moment
Republican Governor Bob Martinez inherited a rare opportunity in 1987. Faced with a projected large budget deficit, Democratic legislative leaders made plans to eliminate all sales tax exemptions in 1987. At Governor Martinez's urging, they agreed to tax most services rather than raising the sales tax from 5 to 6 cents on the dollar, which would have made the tax code fairer for everyone.
x / Sentinel file photo
Bob Martinez served one term as Florida's governor from 1987 to 1991. (Associated Press)
Florida's broadcasting stations and newspapers vehemently opposed the tax on advertising. The powerful real estate broker lobby vehemently opposed the services tax. Martinez and the state legislature bowed to pressure, repealing the services tax and raising the base tax on goods to its current statewide rate of 6 percent.
This made the state's main source of revenue less regressive, not more. Democratic Governor Lawton Chiles reinstated the services tax in 1992, but to no avail.
Any reform is unthinkable in Florida today, and some proposals would make the system worse.
One is Agriculture Commissioner Wilton Simpson's proposal to not impose property taxes on farm equipment that other businesses pay on machinery and inventory.
Still, tax reform remains an urgent, if overlooked, issue heading into the 2026 gubernatorial election and beyond.
The Sun-Sentinel editorial board is comprised of Opinion Editor Steve Bousquet, Deputy Opinion Editor Dan Sweeney, Editorial Director Martin Dykman and Managing Editor Julie Anderson. Editorials represent the opinion of the board and are written by one of the board members or their designee. To inquire, please email letters@sun-sentinel.com.
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