On June 30, 2025, Governor Ron Desantis eliminated Florida’s Business Rent Tax (BRT) effective October 1, 2025. This removes the current statewide 2% sales tax on commercial rental payments and further removes state and local surtax.

How did we get here?

The BRT had been gradually reduced since 2017. During the year 2017, the sales tax on commercial rentals began at 6%, and gradually reduced to 4.5% by the end of that year. On June 2024, the BRT was reduced to 2%, and now, effective October 2025, the BRT is at zero.

Who benefits?

Tenants: Business leases in commercial spaces (offices, retail, warehouses, storage) eliminate recurring rental tax paid as part of monthly rental payments. The Tenants do realize substantial savings in their monthly rental payments. 

Landlords: Must update invoices, accounting systems, and discontinue tax collections for rent periods starting October 1 onward. Landlords will also realize savings in the cost of processing tax returns and tax payments to the state.

Key details for all parties

• Rental collected prior to October 1, 2025, does require a 2% + surtax. 
• Rental collections after Oct 1, 2025, have no sales tax. If you are a Tenant that paid sales tax post October 1, 2025, you should contact your landlord for refund of your monies. 
• Exclusions: Short-term lodging, vehicle/boat storage remain taxed under other statutes.

To Summarize

HB7031 represents a major win for commercial real estate and tenants, easing occupancy costs and increasing Florida’s business appeal. If you’re involved in commercial leasing, updating operational, billing, and tax systems should be a top priority before October.