Florida Repeals Sales Tax on Commercial Rent Effective October 1, 2025

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Real Estate & Construction

Florida repealed the state sales tax imposed on rent or license fees for the use of real property (commercial rentals) under section 212.031, Florida Statutes (F.S.) as of October 1, 2025. State sales tax or discretionary sales surtax does not apply to rent or license fees for rental or occupancy periods beginning on or after October 1, 2025.

Florida released a Tax Information Publication that provides more detail regarding the repeal. The following is a brief summary of the key points.

The repeal does NOT apply to:
1. Rentals or leases of living, sleeping or housekeeping accommodations for six months or less (transient rentals)
2. Parking or storage spaces for motor vehicles in parking lots or garages
3. Docking or storage spaces for boats in boat docks or marinas
4. Tie-down or storage space for aircraft at airports
Tax still applies to all rent payments through September 2025 even if payment is made on or after October 1, 2025.
If a company’s sales tax account is used only to report sales tax on commercial rentals, all returns must continue to be filed through September 2025. After the September return is received, Florida will update the company’s account status (i.e., close the account without any action on the company’s part).
If a company later receives rent for periods prior to October 1, 2025, the company must report and remit the tax.
Payments received before October 1, 2025 for periods after October 1, 2025 are NOT subject to sales tax. However, a company must still file a return.
Semiannual filers do not report rent for October to December 2025 on their July-December 2025 return.
Annual filers do not report rent for October to December 2025 on their January-December 2025 return.
If a company already received rent and sales tax for October to December 2025 from a tenant and reported it to the state, the company must refund the tax to the tenant before requesting a refund from the Department.