Florida Ends Commercial Rent Tax in Major Win for REALTORS®

Starting Oct. 1, 2025, Florida businesses will no longer be required to pay sales tax on commercial leases, a repeal that will deliver $2.5 billion in annual savings to reinvest in jobs, equipment and growth. Equally important, Florida will no longer be the only state taxing commercial leases and can now stand on equal footing in attracting and retaining businesses.

For South Florida, in particular, this victory shows how REALTORS® engagement benefits the entire business community—because the idea to end the tax started in a MIAMI Association of REALTORS® (MIAMI REALTORS®) boardroom 15 years ago. Since then, MIAMI REALTORS® and Florida REALTORS® led the charge to end the tax on commercial leases, which was as high as 7 percent in South Florida. REALTORS® advocated, collaborated and persisted through countless meetings with lawmakers until success was achieved.

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Launching the idea to end the Florida BRT

In 2010, the MIAMI REALTORS® Commercial Board of Governors examined the state’s interpretation that “all rent” on commercial leases included base rent plus pass-through charges like property taxes, insurance premiums and common area maintenance on triple-net leases—meaning tenants paid sales tax on every occupancy cost. At that meeting, one leader highlighted the competitive stakes: Florida was losing business to North Carolina because Florida imposed a sales tax on commercial leases while North Carolina did not. That insight proved to be the spark for a statewide advocacy movement.

Building the case

MIAMI REALTORS® raised the issue with Florida REALTORS®, who commissioned a comprehensive study. The findings were striking: Florida was the only state in the nation imposing a sales tax on commercial leases.

That revelation transformed the conversation. To lawmakers and the public, the technical language of “sales tax on commercial leases” was difficult to digest. So, Florida REALTORS®’ advocacy team rebranded the effort with a clearer, more compelling label: the “Business Rent Tax.”

The name resonated, and momentum began to build.

Chipping away at the tax

Thanks to persistent advocacy, the legislature began reducing the tax in 2017, with each cut saving businesses hundreds of millions. Stakeholders from across the spectrum—REALTORS®, chambers of commerce, small business owners and corporate tenants—united around the effort, emphasizing that the BRT was not just a real estate issue but an obstacle to economic growth.

Step by step, the then 6 percent tax was lowered until, in 2025, the final victory was secured. In June of this year, the Florida Legislature passed House Bill 7031, which was signed into law by Governor Ron DeSantis, providing for the full repeal effective Oct. 1, 2025.

The repeal applies to all rent or license fees for commercial real property beginning on or after that date. Any rent covering periods through Sept. 30, 2025, remains taxable—even if paid after this date. It is also important to note what the repeal does not cover: short-term residential rentals (six months or less), parking or storage for vehicles, boats or aircraft and other specific rentals remain taxable under other sections of Florida law.

$2.5 billion annual economic impact

Florida REALTORS® estimates that the repeal will save businesses about $2.5 billion annually. This reflects the 2.5 percent reduction effective Aug. 1, 2023, under Senate Bill 50 (2021), the 2 percent repeal in HB 7031, effective Oct. 1, 2025, and the elimination of the local discretionary sales surtax (up to 1.5 percent, depending on the county).  

To put this into perspective:

• According to Lee & Associates’ Q2 2025 report, the average triple-net asking rate per square foot in South Florida was $38.73 per square foot. With the repeal of both the 2 percent state tax and the 1 percent local surtax in Broward, Miami-Dade and Palm Beach counties, tenants will save $1.16 per square foot. Combined with the 2023 reduction, the total savings reach $2.13 per square foot. 
• In Brickell, where the triple-net asking office rate averages $94.22 per square foot, the two-year phase-out will save tenants $5.18 per square foot.

Landlords, property managers and tenants should prepare now since lease templates and accounting systems will need to be updated to remove references to the BRT. Rent and CAM invoices should be carefully reviewed to ensure charges for occupancy periods after Sept. 30, 2025, are no longer taxed. Prepayments or overlapping periods should also be reconciled to avoid confusion and ensure the savings are recognized immediately.

A model of advocacy

The elimination of the BRT is the result of 15 years of strategic advocacy. It began with a local boardroom discussion about the unfair pass-through taxation, grew with research highlighting Florida’s unique disadvantage and gained momentum through smart messaging and relentless persistence.

As of Oct. 1, 2025, Florida businesses will finally be free from this burdensome tax. The repeal stands as one of the most significant advocacy wins in Florida REALTORS® history—proof that when REALTORS® lead, the entire business community benefits.

Danielle Blake is chief of residential & advocacy, Miami Association of REALTORS®.