The 2027 picture for Florida residents
Florida has no state income tax, so the 2027 tax picture for its residents was entirely federal: ordinary rates up to 37%, capital gains up to 23.8%, and federal Medicare taxes. That was the structural advantage that drove tech-employee relocations into Florida throughout the decade.
2027 federal capital gains brackets
In $2027, federal long-term capital gains rates were 0% up to approximately $48,350, 15% up to approximately $533,400, and 20% above. The 3.8% NIIT added for MAGI above $200,000 single, producing a 23.8% top federal rate on long-term equity sales.
Florida treatment in 2027
Florida imposed no state income tax on capital gains in 2027, so federal 23.8% was the ceiling. This was a meaningful structural advantage for equity sellers compared to California and New York peers.
Frequently asked
- What supplemental-wage withholding rate applied to RSU income in Florida in 2027?
- The federal supplemental-wage withholding rate was 22% on the first $1,000,000 of supplemental wages per calendar year, rising to 37% above that. Florida does not impose a state income tax on wages, so no state withholding applied.
- Did Florida recognize federal QSBS exclusion in 2027?
- Florida has no state income tax, so QSBS eligibility affects only federal tax. Federal Section 1202 treatment applied in 2027 identically for Florida residents.
- What was the top federal ordinary bracket in 2027, and how did it apply to Florida residents?
- The 37% federal ordinary bracket started around $626,350 of taxable income for single filers in 2027. Florida added nothing at the state level, producing a combined top marginal rate of approximately 37%.