Florida to Eliminate Sales Tax on Commercial Rent Starting October 1, 2025

In a major win for Florida businesses, Governor Ron DeSantis has signed House Bill 7031, which permanently eliminates the state and county sales tax on commercial rent, effective October 1, 2025. Florida has long been the only state to impose sales tax on commercial leases—currently between 3.0% and 3.5%—so this change is both historic and highly impactful.

 What this means for commercial landlords and tenants:

It is likely that many commercial landlords will not be aware of this change.  Landlords should plan to update their rental invoices for the month of October 2025 to reflect the change. Similarly, tenants should double-check their October rental invoices and/or automatic payment systems to confirm that sales tax is no longer being included.  Tenants who pay October rent early (i.e., paying for October rent in September) also should not include sales tax with their October rent payment.

This is an important opportunity for businesses to reduce overhead and increase operational efficiency. If you have questions about how this tax change affects your lease, have any questions about your lease, or need help negotiating a new lease or lease amendment, feel free to reach out to Tom Hunt at Johnson Pope.