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Upcoming Reduction in Florida’s Commercial Rental Property Tax Rate

Oct 26, 2023

An important change is on the horizon for commercial rental properties—including retail stores, offices, warehouses, and industrial spaces—that may affect your business operations in Florida. The December sales tax rate is going down to 4.5% from 5.5% effective December 1, 2023.

 

The new 4.5% sales tax rate will be applied to all rental payments, regardless of any advanced payments made before that time. For instance, if a commercial tenant in Florida pays their January 2024 rent in October 2023, they will be taxed at the newly reduced rate of 4.5%. On the other hand, rent for November 2023 will be taxed at 5.5%, even if it’s paid in December 2023. Commercial landlords and property management firms sending invoices for occupancy periods starting on or after December 1, 2023, should promptly update their records to reflect this sales tax rate reduction.

 

We encourage you to contact your CRI advisor if you have any questions or require further clarification on how this tax rate adjustment may impact your business.

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