Florida Eliminates State Sales Tax on Commercial Rent: What HB 7031 Means for Landlords and Tenants
Florida is phasing out the state sales tax on commercial leases—with full elimination effective October 1, 2025.
In a major win for Florida businesses, the state legislature has passed House Bill 7031 (HB 7031), which will completely eliminate the state sales tax on commercial rent starting October 1, 2025. This move positions Florida more competitively on the national stage and significantly reduces operating costs for tenants across the state.
A Game Changer for Commercial Tenants
Historically, Florida was the only state to charge a statewide sales tax on commercial rent. The tax placed a burden on business tenants leasing office, retail, industrial, or warehouse space. By eliminating this tax, HB 7031 delivers meaningful cost savings and improves the state’s economic competitiveness.
What About the Local Surtax?
Under HB 7031, the discretionary county surtax on commercial rent will also be eliminated for most counties effective October 1, 2025, aligning with the full elimination of the state portion.
Until then, some local surtaxes may still apply in certain counties. Businesses should consult the Florida Department of Revenue or a legal advisor to confirm current local surtax obligations between now and October 2025.
Who Benefits?
This legislation applies to most commercial leases, including:
- Office space
- Retail space
- Industrial properties
- Commercial land leases
- Self-storage (business use)
It does not apply to residential leases or short-term rentals (e.g., hotels or Airbnb-type stays).
Key Action Items for Landlords and Tenants
Review lease terms – Leases that include tax pass-through clauses may need to be updated.
Update invoicing systems – Ensure correct application of the reduced rate now, and full removal in 2025.
Communicate with accountants or legal advisors – Stay compliant and optimize lease negotiations.
Monitor county-level changes – Confirm when and if your county’s local surtax is being phased out.
Strang Tryson, PLLC: Legal Expertise in Florida Commercial Real Estate
Whether you’re a landlord updating lease agreements or a tenant navigating your rights, the attorneys at Strang Tryson, PLLC are here to help you interpret and leverage the changes in Florida’s commercial tax laws.
Contact us today to schedule a consultation and ensure your leases and operations stay ahead of the law.
