New Law Reduces Florida’s Sales Tax Rate on Commercial Rent

|Lowndes Leasing Lawyers Blog

Effective December 1, 2023, the State of Florida’s sales tax rate on commercial real property lease payments (including base rent and additional rent) will be reduced from 5.5% to 4.5% for payments received for occupancy periods beginning on or after December 1, 2023. Examples of taxable commercial real property rentals include commercial office, retail space, warehouses, and self-storage units.

The new sales tax rate will be applicable to all payments of rent attributable to the period beginning on or after December 1, 2023, even if such amounts are prepaid prior to that time. For example, a Florida commercial tenant prepaying January 2024 rent in October 2023 will pay tax on such rent at the new reduced sales tax rate of 4.5%. Conversely, rent due in November 2023 will be subject to the 5.5% rate even if paid in December 2023.

Commercial landlords and management companies sending invoices for occupancy periods beginning on or after December 1, 2023, should update their records to account for the sales tax rate reduction.

Note that the sales tax reduction does not affect the local discretionary sales surtax imposed by many Florida counties. The new combined sales tax and discretionary sales surtax rate for certain Florida counties for 2023 are listed below:



Brevard County


Hillsborough County


Lake County


Miami-Dade County


Orange County


Osceola County


Pinellas County


Polk County


Seminole County


Volusia County


As a reminder, Florida sales tax on commercial rent only applies to amounts paid as rent by commercial tenants. Sales of tangible personal property and certain services provided by commercial landlords to their tenants are subject to Florida’s 6.0% sale tax, which is not impacted by this rate reduction. 

This article is for informational purposes only and does not provide legal advice. Please do not act or refrain from acting based on anything you read here. Please review the full disclaimer for more information. Relying on the information provided in this article or communicating with Lowndes through our website does not create an attorney/client relationship.

Related Expertise

Jump to Page

We use cookies on our website to improve functionality and collect statistical information on our website traffic. For details on how we use cookies, please see our Privacy Policy. By using this website, you agree to our Privacy Policy and Terms of Use

Necessary Cookies

Necessary cookies enable core functionality such as security, network management, and accessibility. This type of cookie does not collect any personally identifiable information about you and does not track your browsing habits. You may disable necessary cookies by changing your browser settings, but this may affect how the website functions.

Analytical Cookies

Analytical cookies (also known as performance cookies) help us improve our website by collecting and reporting information on its usage at an aggregate level. You may disable analytical cookies by clicking on the Manage Cookies button.