Rounding to Replace ‘Bracket System’ in Calculation of Florida Sales and Use Taxes
As a result of recent legislation, the “bracket system” for calculating sales tax and discretionary sales surtax in the State of Florida is replaced by a rounding algorithm. Effective July 1, 2021, businesses collecting and remitting sales tax and discretionary sales surtax must use a rounding algorithm that: 1) carries the tax computation to the third decimal place; and 2) always rounds up to the next whole cent when the third decimal place is greater than 4. For more information, read Tax Information Publication (TIP) 21A01-02.