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

Effective October 1, 2025, Florida has repealed the state sales tax imposed on rent or license fees for the use of real property (commercial rentals). No Florida state sales tax or discretionary sales surtax applies to rent or license fees for rental or occupancy periods beginning on or after October 1, 2025.

Examples of commercial rentals subject to the repeal are rentals of commercial office or retail space, warehouses, and self-storage units.

Note that sales tax and any applicable discretionary sales surtax continue to apply to the following:

• Rent or license fee payments for rental or occupancy periods through September 2025, even if payment is made on or after October 1, 2025
• Sales tax imposed on rentals or leases of living, sleeping, or housekeeping accommodations for six months or less (transient rentals)
• Sales tax imposed on parking or storage spaces for motor vehicles in parking lots or garages
• Sales tax imposed on docking or storage spaces for boats in boat docks or marinas
• Sales tax imposed on tie-down or storage space for aircraft at airports

If a taxpayer’s sales and use tax account is used only to report and remit sales tax on commercial rentals, they must continue filing returns for reporting periods through September 2025. After receiving the return for the final reporting period, the Department of Revenue (DOR) will update the taxpayer’s account status based on the law change. If the taxpayer later receives rent or license fee payments for occupancy periods prior to October 1, 2025, they must report and remit tax on those transactions.

The DOR’s Tax Information Publication contains some helpful FAQs. It can be found on the DOR’s Tax Information Publications 2025 webpage. (Tax Information Publication, No. 25A01-04, Florida Department of Revenue, July 24, 2025)