Florida sales tax on commercial rent, after the repeal.

By Chase Farache, Broker Associate, Silver Lining Realty Group. Updated October 2026.

The short answer

Florida taxed commercial rent for years under s. 212.031, F.S. That ended with the 2025 tax package. The Florida Department of Revenue's Tax Information Publication 25A01-04, issued July 24, 2025, states that the state sales tax on rent or license fees for the use of real property under s. 212.031, F.S., is repealed for rental or occupancy periods beginning on or after October 1, 2025. The repeal comes from Sections 37 and 49 of Chapter 2025-208, Laws of Florida, the chapter law for House Bill 7031.

The repeal covers the property types most of our clients lease: DOR names commercial office and retail space, warehouses and self-storage units. It applies to the county discretionary sales surtax as well as the state tax. DOR's wording is that the repeal "applies to both the state sales tax and any associated discretionary sales surtax."

A note on dates, because they are often mixed up online. The 2024 change was a rate cut, not a repeal. DOR's TIP 24A01-02 (April 8, 2024) lowered the state rate on commercial rentals from 4.5% to 2.0% effective June 1, 2024, and the county surtax still applied then. The full repeal came the next year and took effect October 1, 2025. If a lease, an estoppel or a broker flyer says the tax ended in 2024, it is wrong.

Timing: which rent is still taxable

The tax follows the rental period, not the date you pay. DOR's guidance makes three points that matter to landlords and tenants:

• Late rent for old periods is still taxable. DOR states that "delayed payment of rent for taxable rental periods does not avoid tax." Its example: if a tenant pays August 2025 rent in October, the 2% state tax plus any county surtax must still be reported and remitted.
• Prepaid rent for new periods is not taxable. Rent paid in September 2025 for October 2025 or later is not subject to the tax.
• Adjustments follow the period they relate to. Greenberg Traurig's analysis of the bill notes that a landlord's charge for a tenant's share of extra property taxes tied to occupancy before October 1, 2025 is still subject to sales tax. CAM and tax reconciliations that cover 2025 may therefore be split: the January to September portion taxable, the October to December portion not.

A hypothetical example, for illustration only: a tenant's 2025 CAM reconciliation shows an extra $1,200 owed for the calendar year. If the landlord allocates it evenly by month, $900 relates to January through September (still taxable at the old rate plus surtax) and $300 relates to October through December (not taxable). Your accountant should confirm the allocation method for your lease.

What the repeal did not change

DOR lists several rentals that are taxed under a different statute, s. 212.03, F.S., and were not affected by the repeal:

• Transient rentals of living, sleeping or housekeeping accommodations for six months or less
• Parking or storage spaces for motor vehicles in parking lots or garages
• Docking or storage spaces for boats in boat docks or marinas
• Tie-down or storage space for aircraft at airports

Two practical points follow. First, DOR's TIP does not say how parking bundled into an office or medical lease is treated, so if your lease charges separately for reserved garage spaces, ask your CPA whether that line is still taxable. Second, equipment is not real property. Greenberg Traurig notes that a separately charged item such as a forklift remains a taxable rental of tangible personal property. Warehouse and flex leases that bill for racking, forklifts or other equipment should be reviewed with that in mind.

Self-storage is on the repealed side: DOR names self-storage units among the commercial rentals covered by the repeal, while vehicle parking and storage in lots and garages stays taxable.

What landlords had to do

Landlords whose sales tax accounts were used only for commercial rent did not simply stop filing. Per TIP 25A01-04:

• Returns were still due for periods through September 2025, even if no tax was due (monthly filers through September, quarterly filers through the July to September quarter, semiannual filers through July to December, annual filers through calendar 2025).
• Accounts are not closed on request. DOR updates the account status after the final returns are filed.
• Rent for October 2025 onward is not reported.
• If a landlord collected and remitted tax for periods after October 1, 2025, it must refund the tenant first, then file Form DR-26S with proof of the refund.
• Penalty and interest on late returns for the taxable periods are not canceled, and records generally must be kept at least three years under s. 95.091(3), F.S.

Landlords with other taxable activity on the same account, such as parking, keep filing as before.

What tenants should check now

Most tenants saw the change as a line disappearing from the October 2025 invoice. A short review is still worth doing:

1. Invoices since October 2025. Confirm no state tax or surtax was charged on base rent, CAM, taxes or insurance pass-throughs for periods after September 2025. DOR says a tenant who paid tax that was not due must ask the landlord for the refund, not the Department.
2. Your 2025 reconciliation. Expect the landlord to tax the pre-October share of any true-up and not the rest.
3. Your lease language. Many Florida leases have a clause making the tenant pay "all sales and use tax on rent." It does no harm now, but on a renewal or amendment it is a good time to update it so it covers only taxes that actually apply, and to confirm how separately billed parking or equipment is handled.
4. Your budget. If you are comparing spaces, compare them without the old tax. A quote that still adds it to rent is out of date.

Need a second set of eyes on a lease or a renewal proposal? I can walk through the occupancy cost line by line with you. Call or text (561) 715-7222.

Related reading and next steps

The tax change makes total occupancy cost easier to compare, but the lease structure still decides most of the number. See NNN vs gross vs modified gross leases and CAM charges explained, and if you are negotiating now, commercial lease negotiation in Palm Beach County. To search space, start at commercial space for lease in South Florida.

Not legal or tax advice. Laws, codes and local rules change; confirm current requirements with your attorney, CPA, architect or the permitting office before you act.