- Florida has eliminated the state sales tax on commercial rent effective October 1, 2025.
- The change was signed into law by Governor Ron DeSantis on June 30, 2025.
- This repeal is the result of a multi-year effort to phase out the commercial rent sales tax.
- The tax rate had been gradually reduced, most recently from 4.5 percent to 2 percent in June 2024.
- The repeal also removes local discretionary surtaxes on commercial leases.
- Landlords need to adjust invoicing practices for periods of occupancy starting October 1, 2025.
- Tenants should be informed of the change to ensure compliance.
- Rental payments for periods before October 1, 2025, remain taxable.
- The repeal does not affect sales tax on other rentals like short-term residential stays and tangible personal property.
Source: ksmcpa.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
