Big news is coming to Florida’s real estate market: effective October 1, 2025, the state sales tax on commercial rental properties will be repealed.
For years, tenants leasing office space, retail stores, warehouses, and even self-storage units have had to factor state sales tax into their rental costs. This extra expense often added 4.5–7% (depending on the local surtax) to a tenant’s monthly rent. But with this repeal, that added layer of cost is going away—making commercial real estate in Florida even more attractive for businesses and investors alike.
What’s Changing?
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No Sales Tax on Leases: Starting October 1, 2025, tenants and landlords will no longer pay state sales tax on commercial rental agreements.
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Applies to Commercial Properties: This includes offices, retail spaces, warehouses, and self-storage units.
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Still Applies Through September 2025: Any rent or license fees paid for occupancy through September 30, 2025, will still be taxed.
Why This Matters for Businesses
This change is a major win for business owners:
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Lower Operating Costs – Without sales tax, monthly rent becomes more affordable.
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Encourages Expansion – Lower overhead makes it easier for businesses to lease larger or multiple spaces.
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Boosts Florida’s Business Climate – This positions Florida as an even more attractive state for relocation and investment compared to states where commercial rent is still taxed.
What Landlords Should Know
If you’re a commercial property owner, this repeal could help attract new tenants since lease costs will effectively decrease. It’s also an opportunity to market your properties with the added incentive of “no sales tax on rent” after October 2025.
Key Takeaway
Florida is one of the few states that taxed commercial rentals, and removing this tax is a significant change. Whether you’re a tenant planning for the future, or a landlord marketing your space, this repeal could positively impact your bottom line.
📅 Mark Your Calendar: October 1, 2025
That’s the official start date when the sales tax on commercial rentals disappears.
