Skip to main content

Say Goodbye to the 2% Tax: Florida’s New Law Eliminates State Sales Tax on Commercial Rent

Starting October 1, 2025, Florida will officially eliminate the 2% state sales tax on commercial leases—a move that business owners, landlords, and investors have eagerly awaited. If you’re involved in leasing commercial real estate, it’s time to understand what this change means for you and how to plan ahead.

Why It Matters
Under current law, Florida is the only state that charges a sales tax on commercial rent. That’s about to change. Governor Ron DeSantis signed legislation that eliminates the 2% state portion of the tax, creating immediate and long-term savings for tenants and landlords across the state.

Who’s Impacted?
  • Tenants and landlords leasing commercial space
  • Developers and investors in commercial real estate
Exceptions (still taxable):
  • Short-term rentals (less than 6 months)
  • Parking spaces, marinas, and docks
  • Aircraft hangars
  • Storage units and equipment rentals
What’s Changing and When
  • Until September 30, 2025: The 2% state sales tax still applies.
  • Starting October 1, 2025: The state sales tax on commercial leases will be fully repealed.
This change does not affect local option surtaxes, which counties may continue to charge. So while the state portion disappears, a small local tax may still apply depending on your location.

What to Do Now
  • Review your existing leases and tax clauses.
  • Prepare for how this change may affect your rent obligations and invoices.
  • Talk to your CPA or business advisor to ensure you’re in compliance and optimizing savings.

For more updates on tax law changes and business tips:

📱 Follow @taxpro_diva on Instagram

🌐 Visit our website for more expert guidance.

Comments

Popular posts from this blog

 

Navigating the labyrinth of business meal and auto expense deductions.

  Revamp Your Tax Game: Unveiling the Secrets to IRS-Approved Deductions! Mark your calendars, taxpayers! If you're navigating the labyrinth of business meal and auto expense deductions, brace yourself for an IRS scrutiny session like never before. The tax watchdogs are on high alert, ready to pounce on incomplete documentation and attempts to conjure records out of thin air, even months or years later. Let’s dive into the thrilling world of tax audits, inspired by a recent nail-biting showdown in the U.S. Tax Court. The High-Stakes Drama Unfolds In this gripping tale, a dynamic duo dared to claim a whopping $13,596 in car and truck expenses. However, their supporting mileage logs were nothing short of a suspense novel, lacking contemporaneity and relying on estimates rather than solid odometer readings. The court delivered a blockbuster verdict, slamming the door on the entire deduction. Why? Because, in the court's eyes, records concocted after the fact lack the cinematic cre...

NET INVESTMENT INCOME TAX (NIIT) OR "OBAMA" TAX

  For high-income taxpayers, dealing with a regular income tax rate of 35% or 37% can be challenging. On top of that, there's an extra 3.8% net investment income tax (NIIT) to consider. The good news is that there are ways to minimize its impact. Who's Affected? The NIIT applies if your modified adjusted gross income (MAGI) exceeds specific thresholds: $250,000 for married taxpayers filing jointly and surviving spouses, $125,000 for married taxpayers filing separately, $200,000 for unmarried taxpayers and heads of household. The taxed amount is the lesser of your net investment income or the excess of your MAGI over the applicable threshold ($250,000, $200,000, or $125,000). What's Included in Net Investment Income? Net investment income encompasses interest, dividends, annuities, royalties, and rental income—unless they're part of an active trade or business. Passive activity income from a trade or business and income from trading in financial instruments or commoditie...