The short version
- Florida caps the sales or use tax on each boat sale at $18,000, and on each boat repair at $60,000.
- A non-resident buying a boat of 5 net tons or more can take a decal allowing 90 days to remove it.
- An extension decal adds up to 90 more days, to a maximum of 180, and costs $425.
- Miss the deadline, or bring the boat back within 6 months, and you owe use tax plus a penalty equal to the tax.
This is general information from the statute, not tax advice. The rules turn on residency, where the boat will be kept and how it is used, so confirm your own situation with a marine tax advisor before closing.
The $18,000 cap
Florida's sales tax rate is 6%, but section 212.05(5) of the Florida Statutes caps the tax collected on each sale or use of a boat in the state at $18,000. In practice the cap binds on any boat above $300,000, because 6% of $300,000 is $18,000. The same subsection caps the tax on each repair of a boat at $60,000.
Source: Florida Statutes, s. 212.05(5), which provides that the maximum tax "on each sale or use of a boat in this state may not exceed $18,000 and on each repair of a boat in this state may not exceed $60,000."
The non-resident decal
A buyer who is not a Florida resident can avoid Florida tax on a purchase made here if the boat leaves the state on time. Under s. 212.05(1)(a)2., for a qualifying boat of 5 net tons of admeasurement or larger:
- The selling dealer issues a decal authorising 90 days after the date of purchase to remove the boat.
- Within 60 days of purchase you can apply to the dealer for an extension decal allowing an additional 90 days, to a maximum of 180 days in total. The extension decal costs $425.
- The 180-day period "may not be tolled for any reason," so weather, repairs and delays do not stop the clock.
For a boat under 5 net tons, the removal window is 10 days after purchase. Where the boat stays in Florida for repairs or alterations, removal must happen within 20 days after they are completed.
Proving the boat left
The statute requires written proof of departure, filed with the Department of Revenue within set periods after the boat leaves. Keep the clearance and arrival paperwork from the boat's first foreign or out-of-state port, along with fuel and marina receipts that show where the boat was.
If you miss the deadline
If the boat is not removed in time, or if it returns to Florida within 6 months of departure, the non-resident purchaser becomes liable for use tax on the cost price of the boat, plus a penalty to the Department of Revenue equal to the tax payable. On a boat where the cap applies, that can mean $36,000 rather than nothing.
Planning the purchase
- Decide where the boat will be based before you sign, and tell your broker early. It changes the closing.
- Build the removal date into the survey and closing schedule, not after it.
- Ask a marine tax advisor about your state of residence and its own use tax. Taking the boat home tax-free from Florida does not mean tax-free at home.
Common questions
What is the maximum sales tax on a boat in Florida?
Florida caps the tax collected on each sale or use of a boat at $18,000 under s. 212.05(5) of the Florida Statutes. The same subsection caps tax on each boat repair at $60,000.
How long can a non-resident keep a newly purchased boat in Florida tax-free?
For a boat of 5 net tons or more, 90 days under the dealer decal, extendable by up to 90 more days to a maximum of 180 days with an extension decal costing $425. Smaller boats have 10 days.
What happens if I bring the boat back to Florida too soon?
If the boat returns within 6 months of departure, the non-resident purchaser is liable for use tax on the cost price plus a penalty equal to the tax.
Is this tax advice?
No. It summarises the statute as of 2025. Residency, use and your home state's own taxes all matter; confirm your situation with a marine tax advisor.
Talk it through with Kevin
Coast Guard veteran. Fifteen years at Denison Yachting, where he managed new-boat sales for Selene and Hatteras. Founded Resolute in 2021.