Florida imposes a sales tax on commercial leases of real property, one of the few states to do so. As of May 9, 2024, the state sales tax rate on such leases stands at 4.5 percent, following a decrease from 5.5 percent due to the implementation of House Bill (HB) 7063 on December 1, 2023.
Effective June 1, 2024, the Florida sales tax rate on commercial leases will further decrease to 2.0 percent for payments received for occupancy periods beginning on or after this date. This reduction does not extend to local taxes, which range from 0.5 to 1.5 percent and vary by county.
Here is a list of the top ten counties and what they charge for their surtax. For the latest local county surtax rates in Florida, including those for Brevard County and the top 10 counties, updated information can be found on the Florida Department of Revenue website.
County | Surtax Rate |
---|---|
Brevard | 1% |
Miami-Dade | 1% |
Broward | 1% |
Palm Beach | 1% |
Hillsborough | 2.5% |
Orange | 0.50% |
Duval | 1.5% |
Pinellas | 1% |
Lee | 1% |
Polk | 1% |
Another important note is that this tax specifically targets commercial properties, excluding residential properties and transient rentals, such as short-term accommodations of six months or less. Sales taxes on commercial leases contribute to Florida's broader tax structure, supporting state and local services and the upcoming tax rate adjustments will apply to both base rent and additional rent components, including common area maintenance (CAM) charges, property taxes, and insurance.
Remember, for rental payments made on or after June 1, 2024, for rental periods starting on that date or later, the new reduced sales tax rate of 2.0 percent will apply. Payments for rental periods before this date remain subject to the current 4.5 percent rate.
Businesses looking to obtain a Florida Sales and Use Tax Number can register online via Florida’s Registration and Account Maintenance portal for the quickest processing, or alternatively, by mail using Florida Form DR-1. Registration requires providing business details such as the name, physical address, contact information, Federal Employer Identification Number (FEIN), bank routing, and account details for electronic tax filings, among other necessary information. For other detailed instructions and to access the required forms, visit the Florida Department of Revenue website at https://floridarevenue.com.