Florida's Sales Tax on Commercial Rent Is Ending

Here's What Occupiers Need to Know

Starting October 1, 2025, Florida will fully repeal the sales tax on commercial rentals, including all local surtaxes. This change, announced in TIP 25A01-04, eliminates a cost unique to Florida tenants—bringing the state in line with the rest of the U.S. 

The change will impact businesses who lease commercial offices, retail spaces, warehouses, and self-storage units. 

What’s Changing

Beginning in October lawmakers will fully repeal the 2% state sales tax on commercial rentals. In addition, the government will eliminate all local surtaxes on commercial rent. 

This change applies to commercial rent and license fees for rental periods starting on or after October 1, 2025. Rent paid for periods before October 1 is still taxable. This remains true even if a tenant makes the payment after that date.

Why It Matters

Tenants will see immediate savings of 2% to 3.5% on their gross rent, lowering overall occupancy costs. 

In triple net leases, tenants usually pay the tax as a pass-through. This tax should go away, but it’s important to ensure that someone actually enforces this change. 

The timing is a good chance to look at lease renewals, expansions, or changes to save costs. Lastly, businesses should reflect these changes in their Q4 2025 budget forecasts and lease accounting plans.

What Tenants Should Do

With the repeal of commercial sales tax on rentals in Florida, tenants can take advantage of this change. Here are a few steps to take next: 

1. Review lease language

2. Confirm tax is removed from rent invoices post-October 2025 

3. Leverage this change in negotiations

Let’s discuss how this change to Florida's commercial rental sales tax impacts your lease and bottom line. Contact our team here. 

Reference: TIP 25A01-04 – Florida Department of Revenue