Big News for Florida Commercial Property

Sales Tax on Commercial Rentals Ends October 1, 2025

Compliments of Markham Norton Mosteller Wright & Co., P.A…

Effective October 1, 2025, the state sales tax on commercial rent and license fees will be repealed under Section 212.031, Florida Statutes.

No more state sales tax or discretionary sales surtax will apply to:

• Commercial office or retail space rentals
• Warehouse leases
• Self-storage unit rentals

This change applies to rental or occupancy periods beginning on or after October 1, 2025.

What’s still taxable?

Sales tax will continue to apply under Section 212.03, F.S., for:

• Transient rentals (living, sleeping, or housekeeping accommodations for 6 months or less)
• Parking/storage spaces in parking lots or garages
• Boat docking or storage spaces in docks or marinas

Key Compliance Reminders:

• Rent paid after Oct. 1, 2025, for periods before that date is still taxable.
• Rent paid before Oct. 1, 2025, for periods on or after that date is NOT taxable.
• You must file your final tax return for September 2025—even if no tax is due.
• The Florida Department of Revenue will automatically update your account after your final filing.
• If you receive rent later for any pre-October 2025 periods, you must still remit tax.

FAQs: What You Need to Know

Do I have to collect sales tax if my tenant pays rent after October 1, 2025, for a prior rental period?

Yes. Rent or license fee payments for rental periods through September 2025 are taxable, even if payment is made on or after October 1, 2025. Delayed payment does not exempt the rent from sales tax.

Do I have to collect sales tax if my tenant pays rent for October 2025 in September 2025?

No. Payments made before October 1, 2025, for rental periods on or after that date are not subject to tax. However, you still need to file a return for September 2025, even if no tax is due.

Will discretionary sales surtax still apply after October 1, 2025?

No. The repeal applies to both the state sales tax and any discretionary sales surtax on commercial rentals.

If my tax account is used only for commercial rentals, do I need to request that it be closed?

No. The Department will automatically update your account after your final return(s) are filed. If you later receive rent for occupancy periods prior to October 1, 2025, you must report and remit the appropriate tax.

Questions about how this change affects you?

They’re here to help.

Contact Markham Norton Mosteller Wright & Co., P.A. TODAY!