Business Services, Lease

Update: Florida Repeals the Sales Tax on Commercial Rent

May 15, 2024

Reviewed by Erik Newton, Esq., on October 8, 2026.

Florida was the only state that charged sales tax on commercial rent. That tax is gone. Under HB 7031 (2025), rent for commercial real property is no longer subject to state sales tax or local discretionary surtax for rental periods beginning October 1, 2025 (Department of Revenue TIP 25A01-04, July 24, 2025).

How we got here

The rate on commercial rent had been coming down for several years and reached 2% on June 1, 2024 (Department of Revenue TIP 24A01-02). The 2025 legislation finished the job and repealed the tax on commercial real property rentals entirely.

The transition rule

The date that matters is the rental period, not the payment date.

Rent for periods before October 1, 2025 is still taxable, even if it is paid after that date. September 2025 rent paid in October still carries the tax.
Rent for periods on or after October 1, 2025 is not taxable, even if it was paid in advance.

What is still taxed

The repeal covers commercial real property. Several related charges remain taxable, including:

Short-term (transient) accommodations of six months or less
Parking and vehicle storage
Boat docking and storage, and aircraft tie-down or hangar space
Self-storage units
Leases of equipment and other tangible personal property

What practice owners should check

Your invoices. Landlords and property managers should stop adding sales tax to base rent and to the common area charges billed with it. Check the first invoices issued after October 1, 2025.
Your lease language. Many leases pass “all sales and use taxes on rent” through to the tenant. Those clauses no longer pull in a tax on rent, but they may still reach parking, storage or equipment charges billed under the same lease.
Deals in progress. If you are buying or selling a practice, the occupancy-cost figures used in valuation and in the lease assignment should reflect rent without the tax for periods on or after October 1, 2025.

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