Florida just Killed the Commercial Rent Tax

Florida just Killed the Commercial Rent Tax

Florida just made a massive move for business owners. Starting October 1, 2025, the sales tax on commercial leases is gone.

Right now, tenants pay 2% state tax plus 1% county surtax in Palm Beach, a total of 3%. That all disappears October 1, 2025, making Florida the only state in the country to end this type of tax on commercial rent.

This means lower occupancy costs for office, retail, industrial, and warehouse space. Businesses can allocate more funds to growth instead of taxes, and demand for commercial space is expected to rise as leasing becomes more affordable.

What to know:

·       Tax still applies through September 2025, but not after.

·       Landlords must update invoices and accounting systems.

·       Tenants should check automatic payments and year-end reconciliations.

Some taxes remain on short-term rentals, parking, boat slips, storage, and equipment leases.

This repeal is a significant win for Florida’s economy and real estate market.

Kyle Camerlinck | Real Estate Broker | Taiter Realty LLC
Click here to view my listings
Want to interview me for the job?
Cell: (561) 371-5143 | Email: kyle@taiter.com | Office: 1090 Jupiter Park Drive, Jupiter, FL 33458