If you own a business in Florida, there's a good chance you owe a tax most business owners have never heard of — and missing it costs you 25% automatically.
Florida's tangible personal property tax requires every business that owns furniture, equipment, computers, machinery, or fixtures to file an annual return with their county property appraiser. The form is called the DR-405, and the deadline is April 1 every year.
This guide covers everything Florida business owners need to know: what the tax is, who has to file, how the tax is calculated, and what happens if you miss the deadline.
What Is Tangible Personal Property Tax in Florida?
Tangible personal property (TPP) tax is an ad valorem tax assessed on the value of business property that is not real estate. In simple terms: if your business owns physical items that help you operate — chairs, computers, ovens, tools, medical equipment — Florida taxes those items each year.
The tax is administered at the county level by your county property appraiser, not by the state. That's why many business owners never hear about it — there's no single authority sending out reminders, and the requirement doesn't show up on your state or federal tax return.
Florida is one of 38 states that impose some form of business personal property tax. The Florida-specific version covers all businesses, sole proprietors, and rental property owners who have tangible assets with a total value over $25,000.
Who Has to File a DR-405 in Florida?
You are required to file a DR-405 if your business owns tangible personal property with a total just value over $25,000. Below that threshold, you still file once to claim the exemption, and then you're exempt from the tax (but not always from filing — check with your county).
Business types that almost always have to file include:
- Restaurants and cafes — kitchen equipment, refrigerators, ovens, POS systems, tables and chairs can easily exceed $25,000
- Dental and medical offices — imaging equipment, dental chairs, exam tables, and computers are high-value assets
- Construction companies — tools, trailers, scaffolding, and machinery
- Retail stores — shelving, POS systems, display fixtures, and computers
- Auto repair shops — lifts, diagnostic equipment, and tools
- Hair salons and spas — styling chairs, equipment, and fixtures
- Law and accounting firms — office furniture, computers, and copiers
- Gyms and fitness studios — exercise equipment and furniture
In short: if your business owns any physical property that isn't real estate, you likely need to file.
What Is the DR-405 Form?
The DR-405is Florida's Tangible Personal Property Tax Return. It's the annual declaration you submit to your county property appraiser listing all taxable business assets.
The form requires you to:
- List all tangible personal property your business owns as of January 1
- Provide the original cost and the year each item was purchased
- Apply Florida's official depreciation schedules to calculate the current assessed value
- Report the total assessed value to the county
Each asset category has its own depreciation schedule. For example, computers depreciate faster than furniture. Florida publishes these depreciation tables, and the county property appraiser uses them to determine what your assets are worth today — and therefore how much tax you owe.
When Is the DR-405 Due?
The DR-405 is due on April 1 of each year. However, you can request an extension to April 15 by contacting your county property appraiser before the April 1 deadline.
The form covers property you owned as of January 1of that year. So when you file in April, you're reporting what you owned at the start of the year.
Each Florida county has its own property appraiser office and its own submission process (some accept online filings; others require a mailed paper form). Check your county's property appraiser website for submission instructions.
What Happens If You Don't File?
Missing the DR-405 deadline is expensive. Florida law imposes automatic penalties:
- 25% penalty on the tax bill for filing late
- Estimated assessment— if you don't file at all, the county estimates your asset value (usually conservatively high) and taxes you on that estimate
- Back taxes plus interest if the county discovers unfiled returns in an audit
The 25% penalty is applied automatically — there's no grace period and no appeal process for simply forgetting to file. Many business owners discover this tax for the first time when they receive an unexpected tax notice with a penalty already attached.
How Is the Tangible Personal Property Tax Calculated?
Here's how the math works:
- List your assets with original cost and purchase year
- Apply depreciationusing Florida's schedules (each asset category has a different useful life — computers depreciate in ~5 years; furniture in ~10–15)
- Sum the depreciated values to get your total assessed value
- Subtract the $25,000 exemption (if you qualify)
- Multiply by your county's millage rate (typically 1–3% of assessed value)
Example: A restaurant owner has $80,000 in equipment (after depreciation). Their county millage rate is 20 mills (2%). Tax = ($80,000 − $25,000) × 0.02 = $1,100/year.
The tax is generally not huge for small businesses, but the 25% late penalty on top of an already-estimated assessment can be a nasty surprise.
How to File Your DR-405
There are a few ways to file:
Option 1: File Yourself (Manual)
Download the DR-405 from your county property appraiser's website. Fill out your asset list, apply the depreciation tables, calculate totals, and mail or submit online. This works fine if you have a small number of assets and are comfortable with spreadsheets.
Option 2: Use a CPA
Most small business CPAs will prepare and file the DR-405 as an add-on service for $150–$400. The downside: you still have to gather all the asset data yourself and hand it to them, which takes more time than most people expect.
Option 3: Use FileProp
FilePropis built specifically for the Florida DR-405. Enter your business info and asset list, and FileProp automatically applies Florida's depreciation schedules and generates a pre-filled DR-405 ready to submit. No spreadsheets, no manual depreciation math, no digging through the county's PDF forms.
Common Mistakes to Avoid
- Forgetting fully depreciated assets — even if an asset has zero book value in your accounting software, Florida may still assess it at a minimum value. Keep old equipment on your list.
- Using the wrong depreciation schedule— Florida's tables differ from IRS depreciation. Don't copy numbers from your tax return.
- Missing the county portal deadline — some counties close their online portal on March 31 even though the statutory deadline is April 1.
- Forgetting leasehold improvements — renovations you made to a leased space (new flooring, built-in fixtures, lighting) are taxable tangible personal property.
- Not filing in the first year — new businesses frequently miss this because no one tells them it exists.
Frequently Asked Questions
Do I owe tangible personal property tax if I lease my equipment?
It depends on the lease structure. If you lease equipment under an operating lease (the lessor owns it), the lessor is typically responsible for the TPP tax. If you have a capital lease or finance lease where you effectively own the asset, you are responsible. Check your lease terms.
What if my business just started this year?
If your business was operating as of January 1, you're required to file a DR-405 for that year. File even if you don't think you owe anything — claiming the $25,000 exemption still requires a return in most counties.
My assets are worth less than $25,000 — do I still have to file?
For the first year you claim the exemption, most counties require you to submit a return listing your assets to prove you qualify. After that, you may be exempt from filing until your value changes. Confirm with your specific county property appraiser.
Can I appeal a tangible personal property tax assessment?
Yes. If you believe the county's assessment is higher than the actual depreciated value of your assets, you can file a petition with the Value Adjustment Board (VAB) in your county. The deadline to appeal is typically 25 days after the Notice of Proposed Property Taxes (TRIM notice) is mailed in August.
What counties in Florida have the highest tangible personal property tax rates?
Millage rates vary by county and municipality. Miami-Dade, Broward, Palm Beach, Orange, and Hillsborough counties tend to have rates in the 18–22 mills range for the combined county/school millage. Your total bill depends on the combined millage rate set annually by your county commission and school board.
The Bottom Line
Florida's tangible personal property tax catches thousands of business owners off guard every year. The good news: once you know it exists, it's straightforward to file. The bad news: the 25% automatic penalty is unforgiving.
If you haven't filed before, start by locating your county property appraiser's website, gathering a list of your business assets with original costs and purchase years, and submitting before April 1.
Or — skip the spreadsheet math entirely and use FileProp. Enter your assets once, and FileProp handles the depreciation calculations and generates your DR-405 ready to submit.