A silicon carbide power MOSFET device includes a first silicon carbide layer, epitaxially formed on the silicon carbide substrate of opposite conductivity type. A second silicon carbide layer of the same conductivity type as the substrate is formed on the first silicon carbide layer. A power field effect transistor is formed in the device region of the substrate and in the first and second silicon carbide layers thereover. At least one termination trench is formed in the termination region of the silicon carbide substrate, extending through the first and second silicon carbide layers thereover. The termination trench defines one or more isolated mesas in the termination region which act as floating field rings. The termination trenches are preferably insulator lined and filled with conductive material to form floating field plates. The outermost trench may be a deep trench which extends through the first and second silicon carbide layers and through the drift region of the silicon carbide substrate. Since the termination region is formed from the first and second silicon carbide layers in the termination region, a time consuming, high temperature diffusion to form a floating field ring is not necessary. Rather, the same epitaxial first and second silicon carbide layers which are used to form an FET in the device region may also be used to form the floating field ring in the termination region.