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

July 24, 2025

Share this Article:

What does this mean for your business?

What’s changing?


Effective October 1, 2025, Florida will eliminate the state sales tax and local discretionary surtaxes on commercial lease payments. This change applies to office, industrial, warehouse, and retail spaces.


Who does this affect?


Businesses that lease commercial property in Florida—including tenants and landlords—should prepare for the repeal, especially if pass-through charges such as property taxes or insurance were previously subject to sales tax.


What does the repeal apply to?


The repeal applies to lease payments
based on the occupancy period, not the payment date. That means any lease covering occupancy on or after October 1, 2025 will no longer trigger sales tax—even if payments are made in advance.


Why it matters:


This is a significant shift in how commercial property is taxed in Florida. For multi-location operators, real estate teams, and accounting departments, this change will impact
lease structuring, invoicing, and budgeting for the upcoming year.


How to prepare:


  • Review lease agreements for Florida locations
  • Adjust invoicing procedures beginning Q4 2025
  • Consider implications for 2025 budgeting and accruals


Baden Tax Management will continue monitoring state tax changes affecting commercial and industrial property across the U.S.

Connect with us:

July 23, 2025
Many companies stay with underperforming tax providers—not because they’re satisfied, but because switching feels risky. Concerns about missed deadlines, lost data, and internal workload often keep companies from making a change—even when they’re unhappy. At Baden, we understand the fear of disruption. That’s why we’ve built an onboarding process that not only protects continuity, but also creates immediate value. Here’s what our clients actually experience when they make the switch:
A man is sitting at a desk using a laptop computer.
By Baden Tax Management July 9, 2025
In enterprise tax planning, timing is as important as accuracy. A Q3 review allows tax leaders to assess their current filings without the urgency of March-to-June filing deadlines. This breathing room provides the capacity for deeper analysis to investigate data anomalies, confirm asset classifications, and identify m
A man and a woman are sitting at a table looking at a laptop computer.
By Baden Tax Management July 7, 2025
Discover how a new property tax partner can enhance compliance, increase accuracy, and reduce year-end filing pressure across jurisdictions.
Show More