Key takeaways
- Effective October 1, 2025, Florida no longer taxes most commercial rent. The repeal covers the state tax and local discretionary surtax.
- Rent for occupancy periods through September 2025 remains taxable, even if paid on or after October 1, 2025.
- Parking, boat docking and storage, aircraft tie-down, and transient lodging remain taxable.
- Review leases and CAM reconciliations for tax collected after the repeal date.
The rate history
| Effective date | State rate on commercial rent | Source |
|---|---|---|
| Before December 1, 2023 | 5.5% plus county surtax | Florida Department of Revenue |
| December 1, 2023 | 4.5% plus county surtax | TIP 23A01-20 |
| June 1, 2024 | 2.0% plus county surtax | TIP 24A01-02 |
| October 1, 2025 | Repealed (state tax and surtax) | TIP 25A01-04; HB 7031 (2025) |
Florida was the only state that charged sales tax on commercial rent. The tax applied to the total rent, which in many leases included pass-through charges such as common area maintenance.
What's still taxable
According to the Florida Department of Revenue, these remain subject to sales tax and surtax:
- Transient rentals of living or sleeping 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 docks or marinas.
- Tie-down or storage space for aircraft at airports.
Transition rule
Taxability follows the occupancy period. The payment date doesn't change it. Rent for occupancy through September 2025 is taxable even if paid on or after October 1, 2025. Late payments and later adjustments for those periods still carry tax.
What tenants and landlords should check
- Monthly invoices. Confirm tax is no longer charged on rent for October 2025 forward.
- CAM reconciliations. Annual true-ups that span the change should split taxable and non-taxable periods.
- Gross leases. If rent was set "inclusive of tax," the lease may need clarification.
- Parking and storage. Separately stated parking charges may still be taxable.
- Underwriting. For a tenant, occupancy cost dropped. For an investor, tenant occupancy cost is a factor in rent growth and renewal risk.
Common questions
When did Florida stop charging sales tax on commercial rent?
October 1, 2025. The repeal applies to rent for occupancy periods beginning on or after that date.
Do I still pay tax on September 2025 rent paid in October?
Yes. Rent for occupancy periods through September 2025 remains taxable, even if paid on or after October 1, 2025.
Is commercial parking still taxed in Florida?
Yes. Parking or storage spaces for motor vehicles in parking lots or garages remain taxable, along with boat docking and storage and aircraft tie-down.
Sources
- Florida Department of Revenue, TIP 25A01-04 (July 24, 2025): Sales tax on commercial rentals repealed effective October 1, 2025
- Florida Department of Revenue, TIP 24A01-02 (April 8, 2024): Rate reduced from 4.5% to 2.0% effective June 1, 2024
- Florida Department of Revenue, TIP 23A01-20 (September 25, 2023): Rate reduced from 5.5% to 4.5% effective December 1, 2023
- The Florida Senate, CS/HB 7031 (2025), Taxation; Chapter 2025-208, Laws of Florida
Sources retrieved October 2, 2026.
General information, not legal, tax, accounting, or investment advice. This is general information, not tax advice. Confirm your situation with a Florida CPA. Examples marked illustrative use hypothetical numbers.