NEWS & INSIGHTS
Florida Repeals Sales Tax on Commercial Rent Starting October 1, 2025
After years of debate, Florida is officially eliminating its controversial tax on commercial real estate rentals. Beginning October 1, 2025, the state will no longer impose sales tax or discretionary surtax on rent for office space, retail stores, warehouses, or other commercial properties. The change, announced in TIP 25A01-04, marks a significant shift in Florida’s business tax environment.
What’s Changing?
- Effective Date: October 1, 2025
- What’s Repealed: State and local sales tax on commercial property rent
- Types of Property: Offices, retail stores, warehouses, and self-storage units
- Tax No Longer Applies: To rent for periods beginning on or after October 1
What’s Still Taxable?
Sales tax will continue to apply to:
- Transient accommodations (e.g., hotel rooms, rentals under six months)
- Parking or storage of motor vehicles, boats, or aircraft
- Rentals in public lodging establishments like hotels or motels
Transitional Rules
Rent attributable to periods before October 1 is still taxable, even if it’s paid later. For example, if a tenant pays September rent in October, that payment is still subject to tax.
Compliance for Landlords
- Final Returns: If you only collect sales tax on commercial rent, you must file your final return through September 2025.
- No Action Needed to Close Your Account: The Department of Revenue will automatically update your registration after your final filing.
- Refunds: If sales tax is mistakenly collected for rent due in October or later, landlords must first refund the tenant before requesting a refund from the DOR using Form DR-26S.
Why It Matters
Florida’s sales tax on commercial rent has long been considered an outlier nationally and a barrier to business growth. This repeal improves Florida’s competitiveness, especially for small and growing businesses that lease space. It also simplifies compliance and reduces administrative burdens for landlords and tenants alike.
What You Should Do Now
- Review your lease agreements and payment schedules
- Update billing systems and accounting practices
- Coordinate with your tax advisor to ensure accurate proration and refund procedures
- Notify tenants about the change and update rent invoices accordingly
Final Thoughts
The repeal of Florida’s sales tax on commercial property rentals marks a turning point in the state’s tax structure. But the transition requires attention to timing, billing, and compliance details. Businesses and property managers should act now to prepare for the October 1 deadline—and to avoid any issues with overcollection or underreporting.
Keywords:
Florida commercial rent sales tax repeal, TIP 25A01-04, Florida tax on commercial leases, commercial lease sales tax Florida 2025, repeal of section 212.031, Florida sales tax October 2025, end of sales tax on office rent Florida, warehouse rent tax Florida, sales tax on retail leases Florida, Florida real property tax exemption 2025
© 2025 Jeanette Moffa. All Rights Reserved.
Florida’s sales tax on commercial real property rentals is repealed effective October 1, 2025, as announced in TIP 25A01-04.
The repeal applies to leases of office space, retail stores, warehouses, and self-storage units—essentially, most non-residential commercial real estate.
Yes. Both state sales tax and county discretionary surtax are eliminated for qualifying rental payments due on or after October 1, 2025.
Sales tax still applies to:
Transient accommodations (e.g., hotel rooms, short-term rentals under six months)
Parking or storage for vehicles, boats, or aircraft
Public lodging rentals like those in hotels and motels
If the rent is for October or later, it is not subject to sales tax. The exemption is based on the rental period, not the payment date.
Rent attributable to September or earlier is still taxable, even if paid after the repeal date.
No separate action is required. Landlords must file their final return for September 2025, and the Florida Department of Revenue will automatically update registration records.
Yes—but only after they have refunded the tenant. Then, the landlord may file Form DR-26S to request a refund from the Department of Revenue.
No. The repeal applies only to commercial real property leases under section 212.031, F.S. Residential leases and short-term accommodations remain unaffected.
Florida has historically been one of the only states to tax commercial rent. This repeal improves the state’s business climate, tax competitiveness, and economic development strategy.
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Jeanette Moffa, Esq.
(954) 800-4138
JeanetteMoffa@MoffaTaxLaw.com
Jeanette Moffa is a Partner in the Fort Lauderdale office of Moffa, Sutton, & Donnini. She focuses her practice in Florida state and local tax. Jeanette provides SALT planning and consulting as part of her practice, addressing issues such as nexus and taxability, including exemptions, inclusions, and exclusions of transactions from the tax base. In addition, she handles tax controversy, working with state and local agencies in resolution of assessment and refund cases. She also litigates state and local tax and administrative law issues.
