Effective June 1, 2024, Florida’s state sales tax rate on the renting, leasing, letting, or granting a license to use real property (“commercial rentals”) decreases from 4.5% to 2.0%. Examples include rentals of commercial office or retail space, warehouses, self-storage units, and mini-warehouses.
Florida had previously decreased the sales tax rate on commercial rentals from 5.5% to 4.5% effective December 1, 2023.
Sales tax is due at the rate in effect during the time the tenant occupies or is entitled to occupy the real property, regardless of when the rent is paid. For example, rental charges paid on or after June 1, 2024 for rental periods of December 1, 2023 through May 31, 2024, are subject to 4.5% state sales tax plus any applicable discretionary sales surtax. Rental payments made prior to June 1, 2024 that entitle a tenant to occupy real property on or after June 1, 2024 are subject to 2.0% state sales tax plus any applicable discretionary sales surtax.
The DOR notes that the reduced state sales tax rate on commercial rentals does not apply to the state sales tax rate on rentals or leases of living, sleeping, or housekeeping accommodations for six months or less (“transient rentals”), parking or storage spaces for motor vehicles in parking lots or garages, docking or storage spaces for boats in boat docks or marinas, or tie-down or storage space for aircraft at airports. (Tax Information Publication 24A01-02, Florida Department of Revenue, April 8, 2024)