Florida's solar tax exemptions
Florida has no state income tax, so there's no state solar credit — but it offers two valuable tax exemptions that quietly remove thousands from your cost. Here's how each works in 2026.
Florida's solar tax story is different from many states, and understanding it prevents confusion. Because Florida has no state income tax, there is no Florida state solar income tax credit — you may see other states offer one, but Florida doesn't work that way. Instead, Florida delivers value through two exemptions that require no application and save real money.
1. The property tax exemption — 100%, permanent
Under Florida Statute 193.624, the added value that a solar energy system brings to your home is 100% exempt from property tax assessment. Solar typically adds $15,000–$20,000 in home value, and normally higher value means higher property taxes — but not with solar in Florida. This exemption is permanent for as long as you own the system, saving roughly $250–$600 per year depending on your local millage rate. No application is required; it applies automatically.
2. The sales tax exemption — 6%
Solar equipment is exempt from Florida's 6% state sales tax. This covers panels, inverters, racking, and associated electrical components. On a typical system, that's roughly $1,800–$2,500 you simply never pay. Your installer shouldn't charge state sales tax on qualifying equipment.
The 30% federal residential solar tax credit expired December 31, 2025. Some Florida tax-savings estimates online still include it. For a 2026 cash or loan purchase, your federal credit is $0 — here's the full explanation. The Florida exemptions above are separate and still apply.
How they stack with net metering
These exemptions reduce your upfront and holding costs, while net metering pays you over time by offsetting your bill. Together — plus Florida's abundant sun — they're what make the state one of the strongest solar markets in 2026, even without a state income tax credit or the expired federal credit.
A note on financing
Florida also offers financing that interacts with these benefits: PACE financing is repaid through your property tax bill (though remember the added solar value itself is tax-exempt), and the nonprofit SELF program offers low-interest loans without a credit check. These don't change the exemptions but can make going solar more accessible.