Sales Tax on Commercial Leases Repealed in Florida

As discussed in our Real Estate Blog, over the past two years, the state-level sales tax rate on commercial lease payments was previously reduced from 5.5% to 4.5% to 2.0%. Effective October 1, 2025, HB 7031, signed into law by Governor Ron DeSantis on June 30, 2025, fully eliminates the sales tax on commercial leases. 

The elimination applies to both the state-level rate and local discretionary sales surtax, which depends on whether the transaction is taxable at the state level. 

The elimination of this sales tax applies only to leases of commercial real property as set forth in Section 212.031, Florida Statutes. It does not extend to, nor does it impact, sales tax on the following (i) short-term residential leases for periods of six months or less; (ii) motor vehicle parking or storage charges; (iii) boat dock rentals or storage; and (iv) aircraft tie-down fees.

The reduced tax rate applies only to periods of occupancy on or after October 1, 2025, regardless of the payment date. For example, if a tenant paid rent for September 2025 late—on or after October 1—the existing 2.0% state-level rate and any applicable discretionary sales surtax will apply. Conversely, if a tenant pays October 2025 rent prior to October 1, the payment will be exempt.