Florida cuts the state sales tax on commercial rent from 4.5% to 2.0%

What changed in detail

From 1 June 2024, the Florida state sales tax rate on commercial real property rentals under section 212.031, F.S., fell from 4.5% to 2.0%.

The cut was enacted in 2021 by Chapter 2021-2, Laws of Florida (SB 50), but it had a trigger. It took effect on the first day of the second month after the Office of Economic and Demographic Research (EDR) certified that the Unemployment Compensation Trust Fund balance exceeded USD 4,071,519,600. The balance passed that level in March 2024. The Department of Revenue announced the new rate in Tax Information Publication 24A01-02 on 8 April 2024.

• The county’s local option discretionary sales surtax continued to apply to the total rent.
• The rate follows the occupancy period. Rent paid on or after 1 June 2024 for December 2023 to May 2024 stayed at 4.5%. Rent paid before 1 June 2024 for occupancy from that date was taxed at 2.0%.
• The cut did not apply to transient rentals of six months or less, to parking or storage of motor vehicles, to boat docking or storage, or to aircraft tie-down or storage.

What it means

This step is spent. It replaced the 4.5% rate in force from 1 December 2023. It was itself overtaken by HB 7031 (Chapter 2025-208), which repealed the state tax and the surtax on commercial rent from 1 October 2025.

The 2.0% rate still applies to occupancy from June 2024 to September 2025, whenever the rent is paid. Late payments, true-ups and audits for those months use 2.0% plus surtax.