Effective October 1, 2025, the state sales tax imposed on rent or license fees for the use of real property (commercial rentals) under section 212.031, Florida Statutes (F.S.), is repealed. This means no state sales tax or discretionary sales surtax applies to rent or license fees for rental or occupancy periods beginning on or after October 1, 2025. Examples of commercial rentals subject to the repeal include rentals of commercial office or retail space, warehouses, and self-storage units.
Excluded from Repeal
Sales tax and any applicable discretionary sales surtax continue to apply to:
- Rent or license fee payments for rental or occupancy periods through September 2025, even if payment is made on or after October 1, 2025. Example: If a tenant pays August 2025 rent in October, state sales tax of 2% plus any applicable discretionary sales surtax must be reported and remitted to the Florida Department of Revenue.
- Sales tax imposed under s. 212.03, F.S., on:
- Rentals or leases of living, sleeping, or housekeeping accommodations for six months or less (transient rentals)
- 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
Lessors of Commercial Real Property
If your sales and use tax account (certificate of registration) is used only to report and remit sales tax on commercial rentals, you must continue filing returns for reporting periods through September 2025.
| Filing frequency | Return reporting period(s) |
|---|---|
| Monthly | July 2025, August 2025, and September 2025 |
| Quarterly | July – September 2025 |
| Semiannual | July – December 2025 |
| Annual | January – December 2025 |
Returns must be filed for each reporting period even if no tax is due.
For more information please contact Anthone Damianakis.
