In a major win for the Florida commercial real estate industry, Governor Ron DeSantis signed legislation on June 30, 2025, that officially repeals the sales tax on commercial rentals, effective October 1, 2025. Florida has been the only state that charges sales tax on commercial leases. This long-anticipated move makes Florida more competitive for businesses seeking to lease office space, retail storefronts, and industrial warehouse properties.
What Changed?
For decades, Florida was the only state to impose a sales tax on commercial lease payments, often referred to as the Business Rent Tax (BRT). Under Florida Statute § 212.031, businesses were required to pay sales tax on their commercial leases, a significant expense that impacted the cost of leasing commercial real estate. Previous years in Hillsborough County, sales tax has been upwards of 6% and 7%. Currently, in Hillsborough County is 3.5%.
Now, thanks to House Bill 7073, all state and local sales taxes on commercial leases will be completely eliminated as of October 1, 2025.
Direct from theFlorida Department of Revenue – Sales Tax Overview
Why This Matters to Florida Businesses:
This repeal is a game-changer for tenants and landlords across the state:
- Lower Occupancy Costs – Businesses leasing office or warehouse space will see immediate savings.
- Boost for Leasing Activity – This move is expected to stimulate demand for commercial properties in Tampa, Miami, Orlando, Jacksonville, and other key Florida markets.
- Stronger Business Attraction – Removing the tax improves Florida’s standing among companies comparing commercial lease costs in different states.
If you’re currently searching for office space for rent Tampa, this legislative change just made it more affordable and appealing than ever before.
Important Notes for Landlords & Tenants:
- Lease payments for occupancy before October 1, 2025 remain subject to sales tax. You can view the current sales tax of Tampa Bay’s three largest counties (Hillsborough, Pasco and Pinellas) here.
- The repeal applies only to commercial property leases.
Final Thoughts:
This bill is especially relevant to companies relocating to Florida, expanding into the Tampa Bay (especially Hillsborough County) or seeking to lower their lease expenses, this is one of the most impactful legislative changes in decades. Florida is now officially aligned with every other U.S. state, no more sales tax on commercial leases.