Florida caps the sales tax on a boat. Whether you buy a center console or a 100-foot motor yacht, the most you pay on the purchase is $18,000. Repairs have a cap of their own, and boats bought out of state or by nonresidents follow separate rules.
The cap is generous, but the rules around it are strict, and most expensive mistakes happen before the boat is delivered. Here is how it works in 2026.
What this means for you
- Florida sales or use tax on the purchase of a boat is capped at $18,000, including any county surtax.
- Each repair done in Florida has its own cap of $60,000 in tax.
- A boat bought out of state and brought to Florida within six months can owe Florida use tax, with credit for sales tax already paid to another state.
- Nonresidents can buy in Florida without paying Florida tax only if the boat leaves on time and the paperwork is in order.
- Buying from a private seller or through an LLC does not avoid the tax.
How the $18,000 cap works
Florida’s sales tax rate is 6%, plus a discretionary sales surtax set by each county. On the sale of a boat, the surtax applies only to the first $5,000 of the price, and the total tax on the sale or use of a boat cannot exceed $18,000, surtax included.
At 6%, the state tax alone reaches the cap at a price of $300,000. Above that, the tax stays at $18,000.
| Purchase price | Tax at 6% plus a 1% county surtax | Tax you pay |
|---|---|---|
| $80,000 | $4,800 + $50 | $4,850 |
| $150,000 | $9,000 + $50 | $9,050 |
| $250,000 | $15,000 + $50 | $15,050 |
| $400,000 | $24,000 + $50 | $18,000 (capped) |
| $2,000,000 | $120,000 + $50 | $18,000 (capped) |
Surtax rates differ by county, so your exact figure below the cap depends on where the boat is delivered or registered.
Trade-ins. When you trade in a boat to a registered dealer or broker as part of the same purchase, tax is calculated on the price after the trade-in allowance.
Private sales. Buying from a private seller is still taxable. The buyer pays the use tax when titling and registering the boat with the county tax collector.
Repairs have their own $60,000 cap
Repairs to a boat in Florida, including parts and labor, are generally taxable, and the tax on each repair is capped at $60,000. At 6%, that cap is reached at $1 million of work.
The cap applies per repair, not per year or per boat. For a large refit, how the work is scoped and invoiced affects the tax you pay, and you need documents that support it if the Department of Revenue asks later.
Bought your boat outside Florida?
Florida use tax applies to a boat bought elsewhere and brought into the state for use here. The key is timing.
- Used outside Florida for six months or more first: Florida generally presumes the boat was not bought for use in Florida, and use tax does not apply.
- Brought in within six months of purchase: Florida use tax can apply, up to the same $18,000 cap.
- Tax already paid to another state is credited against Florida use tax, so you only owe any difference.
Some boats, such as those that require a saltwater fishing license, follow a different schedule, so check the rules for your boat before relying on the six-month presumption.
Nonresidents buying in Florida
A nonresident can buy a boat from a Florida dealer or broker without paying Florida tax, but only by meeting the removal rules.
| Boat size | What the rule requires |
|---|---|
| Under 5 net tons | Remove the boat from Florida within 10 days of purchase, or place it directly into a repair facility under its own deadline |
| 5 net tons or more | A Department of Revenue decal allows the boat to stay 90 days. An extension decal, obtained within 60 days of purchase for $425, adds 90 more days, for 180 in total |
The dealer files the buyer’s affidavit with the Department of Revenue within 30 days of the sale. The buyer must then prove the boat left Florida and register it in another state or country within 90 days. If the boat stays too long or the proof is missing, Florida use tax becomes due, along with penalties.
Charters change the picture
Chartering a boat in Florida is not automatically taxable or exempt. It depends on how the charter is structured.
- A bareboat charter, where the customer takes control of the boat, is generally taxable as a rental.
- A charter where the owner supplies the captain and crew and keeps control of the vessel can be treated differently, and some fishing charters and transportation-only trips are exempt.
- Party boats and head boats that charge per person are generally taxable as admissions.
If you plan to charter your boat, the charter agreement and how it is priced matter as much as the income itself. Charters also raise federal income tax questions, which we cover on our marine and yacht page.
Common questions
Does buying the boat through an LLC avoid Florida sales tax?
No. An LLC can be useful for liability and privacy, but the purchase is taxed the same way. The LLC also needs its own records to be worth having.
I live in Florida and bought a boat in a state with no sales tax. What do I owe?
If the boat comes to Florida within six months of purchase, you will generally owe Florida use tax, up to $18,000, because there is no tax from the other state to credit.
Is the sales tax on a boat deductible on my federal return?
If you itemize, Florida residents can deduct sales tax instead of state income tax, and the tax on a boat can generally be included. The deduction is subject to the federal limit on state and local taxes, so whether it helps depends on the rest of your return.
Does a broker or dealer collect the tax?
Yes. Boat brokers in Florida must register as dealers and collect the tax on sales they handle. On a private sale, the buyer pays it at the tax collector’s office.
Philip’s take
The $18,000 cap gets all the attention, but the expensive problems come from timing and paperwork: a boat that arrives in Florida a few weeks too early, a nonresident decal that lapses, or a refit invoiced in a way that cannot support the repair cap. All of those are cheap to get right before delivery and expensive to fix afterward.
If you are buying, selling or chartering a boat, Get My CPA Quote for a fixed fee in writing, or Book 30 Minutes With Philip. You can also see how we work with yacht owners and marine businesses.
Sources: Florida Statutes sections 212.05, 212.06 and 212.09; Florida Department of Revenue brochures GT-800005 and GT-800006 and Tax Information Publications 10A01-07, 15A01-07 and 24A01-10R; Florida Administrative Code Rule 12A-1.071. This article is general information, not advice for your situation. How the rules apply depends on the details of your purchase, your residency and how the boat is used.