Florida Sales Tax Rate Reduced on Leases of Real Property

Date October 5, 2023

As previously reported here, the Florida state sales tax rate on rentals, leases, or licenses to use real property is scheduled to decrease to 4.5% (from 5.5%) on December 1, 2023. The Florida Department of Revenue has issued Tax Information Publication No.: 23A01-20 to address the rate change. The Publication can be viewed here .

The tax on rentals, leases, or licenses to use real property generally applies to commercial office space, warehouses, and self-storage units. The rate reduction does not apply to storage of motor vehicles, boats, or aircraft.

The sales tax rate is based on when the occupant is entitled to occupy the property, not necessarily when the rent is paid.

  • Rental charges paid on or after December 1, 2023 for rental periods prior to December 1, 2023 are subject to 5.5% state sales tax plus any applicable discretionary sales surtax.
  • Rental payments made prior to December 1, 2023 that entitle the tenant to occupy the real property on or after December 1, 2023 are subject to 4.5% state sales tax plus discretionary sales surtax.
  • If you have questions on Florida’s tax rate change or other SALT matters, please contact HBK’s SALT Advisory Group at hbksalt@hbkcpa.com.

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