Florida Sales Tax on Commercial Property Rentals Repealed
Effective October 1, 2025, the state of Florida will repeal sales tax on commercial rentals. This change impacts a wide range of property types and lease arrangements across the state.
Examples of Applicable Rentals
- Commercial office or retail space
- Warehouses
- Self-storage units
Rentals Excluded from the Repeal
- Rent or license fee payments for rental or occupancy periods through September 2025, even if paid on or after October 1
- Sales tax imposed under s. 212.03, F.S., including:
- Transient rentals (6 months or less)
- Parking or storage spaces for motor vehicles in lots or garages
- Docking or storage spaces for boats in marinas or docks
- Tie-down or storage space for aircraft at airports
Lessors of commercial real property must continue filing returns for reporting periods through September 2025.
Additionally, the state will no longer issue Florida Tax Credit Scholarship Program credits related to commercial rentals. However, lessees may continue to apply existing credits toward sales tax payments through September 2025.
For more information, please refer to TIP No. 25A01-04.
To understand how this legal change could affect your rental properties, reach out to Wayne Britton at (857) 216-7807 or Paul Naehle at (857) 299-7877.