A major change is coming to Florida’s commercial real estate market—and it’s great news for both tenants and landlords. Starting October 1, 2025, businesses leasing commercial space in Florida will no longer have to pay state or local sales tax on their rent. This long-awaited move, signed into law by Governor DeSantis on June 30, 2025, is set to bring significant savings and simplify leasing for everyone involved.
Here’s what you need to know about this new law and how it
will affect your lease, payments, and responsibilities.
What’s Changing?
Florida has been the only state in the nation to tax
commercial lease payments. With the passage of House Bill 7031, that’s finally
ending. Effective October 1, 2025, all state and local sales tax on commercial
rent will be eliminated. This applies to office, retail, and industrial leases
across the state.
What Tenants Should Know
Immediate
Savings:
If you’re renting commercial space, your monthly rent just got less expensive.
For example, a business paying $5,000 a month in rent and previously paying a
2% state sales tax (plus any local surtax) will save at least $100 a month, or
$1,200 a year. In some counties, the savings will be even greater.
Lease
Agreements:
Review your lease. Any clauses that reference “applicable sales tax” on rent
will no longer apply after October 1, 2025. If you have automated payments set
up, make sure you update them to remove the tax portion for rent due after that
date.
Subleases:
If you sublease your space, let your subtenants know that sales tax will no
longer be added to their rent payments after the change goes into effect.
What Landlords and Property Managers Should Do
Update
Invoices and Billing:
Remove sales tax from rent invoices for occupancy periods starting October 1,
2025. Update your billing systems and templates to prevent accidental
overcharging.
Remit
Pre-Repeal Taxes:
Sales tax is still due for rent covering periods through September 30,
2025—even if tenants pay late. Make sure you remit all taxes collected for
those periods.
Communicate
with Tenants:
Let your tenants know about the change so there’s no confusion. Clear
communication will help ensure a smooth transition.
Sales Tax
Accounts:
After you’ve remitted all required taxes, you can close your sales tax account
with the Florida Department of Revenue if you don’t have other taxable
activities.
What’s Not Changing
Not all leases are covered by this repeal. The following
will still be subject to sales tax in Florida:
·
Short-term
residential rentals (leases under six months)
·
Parking
facilities
·
Boat
slips and docking
·
Self-storage
units and aircraft hangars
Also, if you receive late payments for periods before
October 1, 2025, those payments are still taxable—even if paid after the repeal
date.
The Bottom Line
This repeal is a big win for Florida’s business community.
Tenants will see real savings, and landlords will enjoy simpler billing and
compliance. Both should review their leases, update their systems, and
communicate with each other as the October 1, 2025, effective date approaches.
Florida’s commercial leasing landscape is about to get a lot
more business-friendly. Get ready to take advantage of the change!
or Toll Free at 888-8TaxAid (888) 882-9243
Sources:
1.
https://www.gunster.com/newsroom/publications/florida-repeals-sales-tax-on-commercial-leases
2.
https://www.bilzin.com/insights/publications/2025/07/fl-eliminates-state-sales-tax-on-commercial-rent
3.
https://kaufmanrossin.com/blog/florida-bill-eliminates-sales-tax-on-commercial-rent-what-tenants-and-landlords-need-to-know/
4.
https://www.deanmead.com/a-win-for-florida-businesses-property-owners-florida-ends-sales-tax-on-commercial-leases/
5.
https://roireal.estate/florida-commercial-rent-tax-repeal-2025/
6.
https://www.handfirm.com/blog/florida-to-eliminate-sales-tax-on-commercial-leases-what-property-owners-and-tenants-need-to-know/
7.
https://www.siegfriedrivera.com/blog/florida-eliminates-sales-tax-on-commercial-real-estate-leases/
8.
https://www.gtlaw.com/en/insights/2025/6/florida-legislature-repeals-sales-tax-on-commercial-leases
9. https://www.gulatilaw.com/florida-repeals-sales-tax-on-commercial-leases-what-property-owners-and-tenants-need-to-know/