FL – Rate imposed on commercial rentals reduced

Effective December 1, 2023, the Florida sales and use tax rate imposed on the total rent charged for renting, leasing, letting, or granting a license to use real property (“commercial rentals”) is reduced from 5.5% to 4.5%.

Real Property Rentals Subject to Tax
Examples of real property rentals subject to tax include rentals of commercial office or retail space, warehouses, and self-storage units or mini-warehouses.

Total Rent Charged
The total rent charged includes all consideration due and payable by the tenant for the privilege or right to use or occupy the real property. The local option discretionary sales surtax imposed by the county where the real property is located continues to apply to the total rent charged. Tax Information Publication, No. 23A01-20, Florida Department of Revenue, September 25, 2023