The Florida commercial rent tax repeal ended a tax that businesses paid for more than 50 years. Effective October 1, 2025, Florida no longer charges sales tax on commercial rent. If you rent an office, shop, or warehouse, check your rent bills now. Some landlords may still be billing the tax by mistake.
A year has passed since the change, so a review is worth your time. Here is what ended, what still applies, and how to check your lease charges.
What Changed on October 1, 2025
House Bill 7031 repealed Section 212.031 of the Florida Statutes. That law imposed the business rent tax. The governor signed the bill on June 30, 2025.
The repeal removed two charges:
- The 2 percent state sales tax on commercial rent
- The local discretionary sales surtax on commercial rent, which ranged from about 0.5 to 1.5 percent by county
Florida was the only state that taxed commercial rent. Now no state does.
What the Repeal Covers
The repeal applies to rent for office, retail, industrial, warehouse, and self-storage space. It applies to tenants and landlords across the state.
The key test is the rental period, not the payment date.
| Situation | Is tax due? |
|---|---|
| Rent for a period before October 1, 2025, paid on time | Yes |
| Rent for September 2025 paid late, after October 1 | Yes, because the period was taxable |
| Rent for October 2025 or later | No |
| October 2025 rent paid early, before October 1 | No |
| Rent for a period after October 1, 2025 on a new lease | No |
How Much Could You Save?
The math is easy. Multiply your yearly base rent by the old rate.
| Annual rent | Savings at 2 percent state rate |
|---|---|
| $60,000 | $1,200 |
| $120,000 | $2,400 |
| $250,000 | $5,000 |
| $500,000 | $10,000 |
These figures do not include the local surtax. Where a county surtax applied, your savings are higher.
Check Your Rent in Five Steps
- Pull your invoices. Look at every bill from October 2025 forward. Find any line labeled sales tax, rent tax, or state and county tax.
- Compare the total. Your bill should equal your base rent plus true charges such as common area costs and insurance. It should not include sales tax on rent.
- Read the lease. Many leases say rent is due “plus applicable taxes.” With no tax now applicable, that line should be zero. A gross lease may need a closer look.
- Check your rent roll and auto pay. Billing software and bank drafts often keep old amounts. Confirm the new amount matches your current bill.
- Ask in writing. If you find a charge, send your landlord or property manager a short note. Cite the October 1, 2025 effective date and ask for a corrected bill.
What to Do If You Were Overcharged
Start with the landlord. Landlords collect this tax for the state, so a refund often runs through them. Ask for a credit on a later bill or a direct refund.
If the landlord already sent the money to the Florida Department of Revenue, the landlord may need to correct that filing. Keep copies of every bill, payment, and message. Contact the Department of Revenue if the issue stays open. A CPA can help with the paperwork and deadlines.
Tax and Planning Effects for Your Business
Lower rent costs help your cash flow. They also change your books.
- Lower expenses. Rent expense falls by the tax you no longer pay. Update your budget and your bookkeeping.
- Higher taxable profit. Less deductible expense means slightly more taxable income. Review your quarterly estimates so you do not underpay.
- Lease renewals. Do not accept a rent increase based on old tax-inclusive numbers. Ask for the base rent to be reviewed.
- Landlord clauses. Some leases let a landlord pass through a future tax if one returns. Read those terms before you sign.
- Landlord records. Landlords should stop collecting the tax and file final returns for taxable periods through September 2025.
Our Year End Tax Planning review is a good time to adjust all of this before December 31.
Frequently Asked Questions
Did Florida eliminate sales tax on commercial rent?
Yes. Florida repealed the tax effective October 1, 2025, under House Bill 7031. Rent for periods on or after that date is not taxable.
Do I still owe tax on rent from before October 1, 2025?
Yes. Rent for periods before that date remains taxable, even if you pay it later. The rental period decides the answer, not the payment date.
Does the repeal include the county surtax?
Yes. The law removed both the 2 percent state tax and the local discretionary surtax on commercial rent.
What if my landlord keeps charging the tax?
Send a written request for a corrected bill and a refund. Keep your records. If the charge continues, contact the Florida Department of Revenue or a tax professional.
Contact Us About Tax Preparation and E-filing
Tax USA helps West Palm Beach businesses review rent costs, update their books, and file with confidence. We offer transparent pricing and year-round support. Our certified preparers handle business returns, quarterly estimates, and fast, accurate e-filing.
See our Business and Individual Solutions or Payroll Services.
Tax USA 1892 Abbey Rd Ste J, West Palm Beach, FL 33415 Phone: 1.866.529.5558 Email: Taxusa@nexusbusinesses.com