Florida Eliminates Burdensome Business Rent Tax

TALLAHASSEE, Fla. — Gov. Ron DeSantis signed a historic $1.3 billion tax relief bill (House Bill 7031) on Monday, which included the complete elimination of Florida’s Business Rent Tax (BRT), a long-standing priority of Florida Realtors®. The removal of the BRT will become effective on October 1, 2025.

This final cut to the BRT means commercial tenants in Florida will be saving a total of $2.5 billion annually and represents an important milestone in the state’s efforts to become more competitive in attracting and growing businesses. This elimination includes both the state sales tax rate and the discretionary sales surtax that counties can levy on commercial leases. Removing the BRT provides Florida businesses with the capital to expand, hire more employees, buy new equipment, improve benefits and raise salaries.

“Local businesses create the jobs families need to thrive, and communities need to grow. Currently, Florida is the only state charging a tax on commercial leases. By eliminating this tax on the rent businesses pay for their operations, we are helping keep Florida a competitive place to start and grow a business,” said Senator Ed Hooper (R-Clearwater), chair of the Senate Committee on Appropriations.

Since 1969, Florida has imposed a sales tax on the rent charged under a commercial lease of property. Taxes on the rental of property by businesses started in 1968, at the rate of 4%. When the general sales tax rate increased to 5% and then 6%, charges for commercial rent increased to those same rates. If the tenant makes payments such as mortgage, ad valorem taxes or insurance on behalf of the property owner, those payments are also classified as rent and are subject to the tax. Commercial property includes land, buildings, office or retail space, convention or meeting rooms, airport tie-downs and parking and docking spaces. It may also include licenses granting the use of property for the placement of vending, amusement, or newspaper machines.

The Florida Legislature began reducing the BRT in 2017:

• 2017 – 6% cut to 5.8%
• 2018 – 5.8% cut to 5.7%
• 2019 – 5.7% cut to 5.5%
• 2021 – 5.5% cut to 2% (which became effective in the summer of 2024)
• 2023 – 5.5% cut to 4.5% (which occurred ahead of the cut to 2% to provide additional relief)
• 2025 – 2% cut to 0 (effective Oct. 1, 2025)

In addition to the elimination of the BRT, HB 7031 also permanently removes the sales tax on many disaster- and hurricane-preparedness supplies as well as several safety- and health-related items. Additionally, it creates a permanent annual Back-to-School Sales Tax Holiday for the month of August and a new sales tax holiday this fall for Floridians exercising their constitutional right to hunt and fish.

Learn more about this historic tax relief bill here.

© 2025 Florida Realtors®