Florida Business Rent Tax Repeal: What Changed on October 1, 2025
Florida Business Rent Tax Repeal: What Changed on October 1, 2025
Florida was the only state that taxed commercial rent. HB 7031 (2025) changed that by repealing the state business rent tax and the county surtax that applied to the same rent. For occupancy periods beginning on or after October 1, 2025, commercial rent is no longer subject to the tax. The Florida Department of Revenue (DOR) explained the change in Tax Information Publication TIP 25A01-04.
This guide covers what the repeal did, which rentals still carry the tax, and what tenants should check in leases that still pass the tax through. It is informational content, not legal or tax advice. Confirm your situation with DOR, or with a qualified attorney or CPA, before you rely on it.
What the repeal changed
Before the repeal, two charges applied to commercial rent in Florida. The state rate had already dropped to 2% in 2024, and any county surtax was layered on top of that. HB 7031 eliminated both for covered occupancy periods. A tenant paying rent for an office, retail space, warehouse, or other commercial premises no longer has rent tax added to the invoice for those periods.
The change applies to the rent itself. It does not repeal Florida sales tax in general. The state sales tax rate is 6%, and it still applies to the taxable goods and taxable services your business sells.
Who the change affects
- Commercial tenants paying rent for covered space stop paying the rent tax for occupancy periods that begin on or after October 1, 2025. Check whether your landlord has adjusted your invoices.
- Landlords that collected tax on rent must stop collecting it for covered periods. Invoicing templates and accounting software often need updating, and any tax still showing on a statement should be explained in writing.
- Parking, marina, and aviation operators keep the tax on the charges that remain taxable, so their treatment does not change.
- Short-term space providers renting space on a transient basis for 6 months or less should confirm with DOR whether the tax still applies to their arrangements.
When the repeal applies
The repeal turns on when an occupancy period begins. It applies to occupancy periods beginning on or after October 1, 2025. Because the test is the start of the period, a single lease can produce billing periods on both sides of the line. Ask DOR how the rule applies to a monthly or multi-year lease that started before October 1, 2025 and keeps running after it. The answer depends on how the occupancy period is defined and on the agency's guidance, so do not assume it from the lease signing date.
What is still taxable
The repeal is not total. Four categories remain subject to Florida tax:
| Rental or charge | Status after the repeal |
|---|---|
| Commercial rent for occupancy periods beginning on or after October 1, 2025 | Repealed, with no state or county rent tax |
| Transient rentals of 6 months or less | Still taxable |
| Parking | Still taxable |
| Boat docking | Still taxable |
| Aircraft tie-down | Still taxable |
| Occupancy periods that began before October 1, 2025 | Confirm treatment with DOR |
The transient rental rule catches people off guard most often. A short-term arrangement of 6 months or less does not get the benefit of the repeal just because the space is used for business. Confirm with DOR whether a given arrangement counts as a transient rental before you assume it does not.
If your business rents a parking space, a boat slip, or an aircraft tie-down, expect the tax to still apply. These charges are often billed on the same statement as the main rent, so read each line item rather than assuming the whole invoice is exempt.
Leases that still pass the tax through
Many leases were written while the tax was in effect. Some say the tenant pays "all taxes" on rent. Others name rent tax or sales tax on rent as a separate charge. Those clauses do not disappear when the law changes, and clauses do not update themselves. What changes is whether tax actually applies to the period being billed. Work through this checklist with your lease in hand:
- Find the tax language. Search the lease for "tax," "sales tax," "rent tax," and "pass-through." Note every clause that makes the tenant responsible for taxes on rent.
- Mark the occupancy period start dates. List each billing period and whether it begins before October 1, 2025 or on or after that date.
- Review recent invoices. Any rent tax line for a period beginning on or after October 1, 2025 needs a written explanation from the landlord.
- Ask the landlord in writing whether tax is still being collected on your space and which periods it covers.
- Confirm with the Department of Revenue if the landlord's answers conflict with your reading of the repeal. Keep every written response.
- Amend the lease if needed. At renewal, or sooner by amendment, remove the pass-through language or restate it so it covers only taxes that still apply. A qualified attorney can draft the wording.
If you already paid tax on a covered period, ask DOR how to handle that amount before you assume it can be recovered. This guide does not describe a refund process, and the agency's current guidance controls.
Common mistakes to avoid
- Assuming the repeal covers every rental. Parking, boat docking, aircraft tie-downs, and transient rentals of 6 months or less remain taxable.
- Assuming a lease updates itself. A pass-through clause stays in the document until someone amends it.
- Ignoring the start date. The date that matters is when the occupancy period begins, not when the invoice is issued.
- Paying tax you no longer owe without asking first. Raise the question in writing before you pay, then ask DOR about the process for amounts already paid.
- Dropping your own sales tax registration. The repeal covers rent. It does not change your obligations on taxable sales.
What did not change for your business
Three obligations are separate from the rent tax, and most businesses still need to handle them.
- Sales and use tax registration. A business selling taxable goods or services must register as a sales and use tax dealer with DOR before it begins business. Register through the DOR sales tax registration page. The state sales tax rate is 6%.
- Local business tax receipt. Florida issues no general statewide business license. The local business tax receipt is a tax under Chapter 205 of the Florida Statutes, not a competency license, and it is not the same thing as a state license. Not every county or city levies it, so check with the city or county where you operate.
- Professional licensing. If your trade or profession requires a license, that license comes from the Department of Business and Professional Regulation (DBPR), not from the rent tax rules.
Where to confirm
- Florida Department of Revenue, for the rent tax repeal and all sales tax questions: floridarevenue.com
- Sales and use tax registration: floridarevenue.com registration page
- Local business tax receipt: your city or county, since each sets its own process
Before you sign or renew a Florida commercial lease for an occupancy period that begins on or after October 1, 2025, have the tax clause reviewed and get the tax treatment confirmed in writing. The repeal changed the rules, but the wording of your lease determines who bears any tax that remains.
Disclaimer
This guide is informational only. It is not legal or tax advice, and it does not create an attorney-client or tax preparer relationship. It summarizes HB 7031 (2025) and DOR TIP 25A01-04 as verified on October 7, 2026. Leases, tenant obligations, and occupancy periods vary, so consult a qualified attorney or CPA for complex situations, including disputes over past tax, multi-location leases, and short-term arrangements.