Are digital products taxed in Florida?

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Casey Epton, CPA, is a Senior Tax Advisor at Deduction, where he helped design Taylor, CPAI from day one, building an AI tax agent that works seamlessly for both clients and the CPAs who verify every return.

Last updated:

Oct 2026

Florida does not impose sales tax on most digital products and services under current state law. Florida's sales tax applies to sales of tangible personal property and certain specifically enumerated services — and digital goods, as intangible property, have not been broadly brought within the taxing statute by the Florida Legislature. However, the rules are not absolute and several important nuances apply depending on how the digital product is delivered and used.

Florida's General Position on Digital Products

Florida imposes its 6% state sales tax (plus applicable local surtax, typically 0.5%–2%) on sales of tangible personal property and certain taxable services enumerated in Florida Statutes §212.02 and §212.05. The Florida Department of Revenue has consistently held that electronically transmitted products — including ebooks, downloadable music, digital video, streaming services, and software delivered via the internet — do not constitute tangible personal property and are therefore not subject to Florida sales tax.

Taxable vs. Non-Taxable Digital Products in Florida

Not taxable in Florida:

Streaming video and audio subscriptions (Netflix, Spotify, Apple Music, etc.) (subject to CST)
Ebooks and digital publications
Downloadable music, movies, and games
Online news subscriptions
SaaS (Software as a Service) — cloud-based software delivered over the internet
Mobile apps (downloaded or accessed via subscription)
Digital photographs and artwork delivered electronically

Potentially taxable in Florida:

Prewritten (canned) computer software delivered on a physical medium (CD, USB drive) — taxable as tangible personal property
Custom software — generally not taxable; Florida treats the charge for customized software as a nontaxable service, however it is delivered, unless it is sold as part of a sale of other tangible personal property
Information services with a "true object" of providing data or compiled information (certain database subscriptions may be taxable as information services)
Digital products that are bundled with taxable tangible property where the digital component is not separately stated

Communications Services Tax (CST)

Florida imposes a separate Communications Services Tax (CST) under Chapter 202, Florida Statutes, on sales of communications services transmitted over wire or radio. Certain digital services that qualify as "communications services" — such as VoIP telephone services — are subject to CST at a combined state and local rate that can reach 14%–15% or more, even though they are not subject to sales tax.

The CST does not generally apply to streaming video or audio services, but the line between taxable communications and non-taxable digital content can be ambiguous.

Florida vs. the National Trend

Many states (including Texas, New York, Pennsylvania, and Washington) have enacted legislation explicitly subjecting digital goods to sales tax. Florida has notably resisted this trend. As of tax year 2025, Florida has not passed legislation to extend its sales tax to streaming services or digital downloads, despite legislative attempts in prior sessions.

Considerations for Businesses Selling Digital Products in Florida

If your business sells digital products to Florida customers, you generally do not have an obligation to collect Florida sales tax on those sales under current law. However, businesses should monitor legislative developments, ensure proper product classification (especially for bundled or hybrid offerings), and review whether the Communications Services Tax applies to any services they provide.

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