Florida’s Big Tax Break: Commercial Lease Sales Tax Ends October 1, 2025
- Cheyenne Matos
- Sep 5, 2025
- 3 min read
Big news for Florida businesses and property owners: starting October 1, 2025, the state will officially eliminate the sales tax on commercial leases- commonly known as the Business Rent Tax (BRT). This long-awaited change will lower occupancy costs, save businesses billions, and make Florida more competitive with the rest of the country.
At Blueprint Commercial, we’re breaking down what this means for landlords, tenants, and investors- and how to prepare for the transition.
What’s Changing?
Until now, Florida was the only state that taxed businesses on their commercial rent. Currently, tenants pay a 2% state sales tax on their lease payments, plus any local surtax (0.5%–1.5%) depending on the county.
Beginning October 1, 2025:
The 2% state sales tax will be eliminated.
All local surtaxes on commercial rent will also be eliminated.
This means businesses will no longer see sales tax added to their commercial lease invoices- putting real dollars back into their pockets.
Why It Matters
Billions in savings: The repeal is projected to save Florida businesses between $1 billion and $2.5 billion annually.
Lower occupancy costs: Retailers, offices, warehouses, and self-storage tenants will all benefit from reduced expenses.
Increased competitiveness: Florida will finally be aligned with the 49 other states that don’t tax commercial rent—making it even more attractive for business growth and real estate investment.
What’s Still Taxable?
Not every type of rental is included in the repeal. Sales tax will still apply to:
Short-term residential rentals (less than six months)
Parking or storage spaces for vehicles
Boat docks and aircraft hangars
Tangible personal property or equipment rentals
Transition Rules to Know
Tax is still due through September 30, 2025. If rent covers periods before October 1, tax must still be collected—even if payment is made later.
October rents are tax-free. Rent billed for occupancy after October 1 should not include sales tax.
Final returns required. Landlords must continue filing returns through the September 2025 reporting period, even if no tax is due.
Action Steps for Landlords & Tenants
For Landlords:
Update billing systems and lease templates to reflect the repeal.
Notify tenants about the change.
Prorate September/October invoices correctly.
File all final tax returns with the Florida Department of Revenue.
For Tenants:
Review lease clauses and billing statements to ensure tax is removed beginning October 1.
Double-check any prorated rent that spans September and October.
Request refunds if sales tax is mistakenly charged on post-October occupancy.
What This Means for Florida CRE
This repeal is a game changer for Florida’s commercial real estate market. By reducing operating costs, landlords may find it easier to attract tenants, while businesses can reinvest savings back into growth. Investors, too, will benefit from a more competitive, tax-friendly environment.
Final Thoughts
The elimination of Florida’s commercial lease sales tax on October 1, 2025 is a landmark win for the state’s business community. With billions in savings on the line, it’s important for landlords and tenants to get ahead of the transition now.
At Blueprint Commercial, we’ll continue monitoring legislative and market updates so our clients can focus on what matters most- building value at every stage of their real estate journey.
👉 Need help preparing for the repeal? Contact our team to review your leases, assess your property strategy, and position your business for success in Florida’s new tax landscape.
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