Florida repealed its sales tax on commercial rent, often called the “business rent tax,” effective October 1, 2025, under HB 7031. Landlords should no longer collect sales tax on commercial lease payments for periods after that date, and tenants should no longer pay it. A year later, it’s worth confirming your rent bills, lease terms, and bookkeeping reflect the change, because mistakes can mean overpaid tax or incorrect filings.
What Was the Florida Business Rent Tax?
Florida was the only state that taxed commercial rent broadly. Landlords collected state sales tax on commercial lease payments, plus county surtax where it applied, and remitted it to the Florida Department of Revenue. Tenants saw it as an extra line on their monthly rent invoice.
What Changed on October 1, 2025?
HB 7031 eliminated the tax on rent for commercial real property. For rent covering periods on or after the effective date, landlords should not charge it. Other Florida sales tax rules, including tax on taxable goods, remain in place. Confirm how the repeal applies to your specific lease or property type with the Florida Department of Revenue.
What Should Tenants Check?
- Your rent invoices. Confirm no sales tax appears on rent for periods after October 1, 2025.
- Your lease. Some leases include language about passing taxes through, so review it for needed updates.
- Your payment history. If you paid tax on post-repeal rent, ask your landlord for a correction or refund.
- Your recurring bills and bank rules. Update them so rent isn’t split into rent and tax anymore.
What Should Landlords Check?
- Your billing system, to stop charging tax on commercial rent
- Your sales tax filings, to confirm the rent line is no longer reported as taxable
- Your accounting software tax settings, so invoices calculate correctly
- Tenant communications, so tenants know what to expect
How Should You Update Your Books?
Rent should now post to one rent expense account, without a separate tax line. Review prior-period entries to make sure post-repeal tax wasn’t recorded as an expense, and reconcile any refunds you receive. If your records are messy, our guide to how to categorize business expenses shows where rent belongs, and our QuickBooks clean up and catch up services can correct the history. Rent savings also feed straight into your year-end tax planning.
What Else Should Florida Filers Remember?
The repeal doesn’t change your other deadlines. Sales tax on taxable sales is still due on the 20th for monthly filers, as covered in our Florida sales tax filing guide.
Frequently Asked Questions
Did Florida eliminate the business rent tax? Yes, effective October 1, 2025.
Should I still pay sales tax on commercial rent? Not for rent periods after the effective date. Check your invoices.
Can I recover tax I paid after the repeal? Ask your landlord for a correction or refund, and consult the Department of Revenue if needed.
Does the repeal affect other Florida sales tax? No. Tax on taxable goods and other items still applies.
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