Sale Tax

Florida to Eliminate Sales Tax on Commercial Rent Beginning October 2025   In a significant policy shift poised to benefit businesses across the state, Florida will officially eliminate the 2% state sales tax on commercial leases effective October 1, 2025. The announcement was detailed in a recent article by Evan Williams for Gulfshore Business, highlighting a long-anticipated move that positions Florida as even more competitive in attracting and retaining commercial tenants. The repeal was signed into law by Governor Ron DeSantis on June 30, 2025, following the passage of House Bill 7031. This marks the final phase-out of a tax that has been in place since 1969, originally set at 6% and gradually reduced over the past decade. “This will make us much more competitive when recruiting or launching new businesses in Florida,” said Gary Tasman, CEO and Principal Broker of Cushman & Wakefield | Commercial Property Southwest Florida, in the Gulfshore Business feature. “It removes a financial barrier that no other state imposed so broadly, giving Florida a clear advantage.” Key Implications: Tenant Cost Relief: The removal of the 2% tax will reduce total occupancy costs for tenants across office, retail, and industrial asset classes. Landlord Adjustments: Property owners should prepare to update lease agreements and billing systems ahead of the October 1 effective date. Market Competitiveness: With the repeal, Florida aligns more closely with national norms, reinforcing its pro-business stance and enhancing its appeal to both regional and national occupiers. This legislative change is expected to stimulate economic activity across the state by lowering barriers to entry and promoting reinvestment in commercial space. To read the full article by Evan Williams in Gulfshore Business, click here.