When Florida repealed the state sales tax on commercial rent, it felt like a win for business owners. Less paperwork. Fewer line items on the lease. One less filing deadline to remember. But if you’ve been charging and remitting sales tax on rental income for years, this rule change probably brought up a new kind of stress: What happens now?
Let’s clear it up.
Recap: No More Sales Tax on Commercial Rent
As of October 1, 2025, you are no longer required to collect or remit Florida state sales tax on commercial lease payments. That includes rent for office spaces, warehouses, retail buildings, and other long-term commercial properties.
There are a few exceptions. If you operate short-term rentals (like hotel rooms, storage units, or meeting spaces rented by the hour or day), those still carry sales tax. Nothing changed there.
For landlords with long-term tenants, this might mean a rent adjustment. You can drop the sales tax line item altogether or update your lease language to reflect the change. Your tenant should only be charged the agreed base rent from October onward.
Don’t Ignore Your Sales Tax Account
Just because you’re no longer collecting sales tax on rent doesn’t mean you can forget about your sales tax account.
Florida’s Department of Revenue still expects you to file returns for any open account. If you stop submitting them, even with no tax due, you could get hit with delinquency notices, penalties, or even audit letters.
Here’s the rule: You can only close your Florida sales tax account if you have no other taxable sales in the state. That means no sales of products, no taxable services, and no online sales shipped to Florida customers.
If you do sell other taxable goods or services, your account stays open—and you keep filing like usual. But if commercial rent was your only taxable income stream, you’re likely ready to shut it down.
How to Close Your Florida Sales Tax Account
Closing your account isn’t hard, but you need to go through the official steps.
- Log into your Florida Department of Revenue account or download form DR-15C.
- Choose the option to close your sales tax account or indicate your business activity has changed.
- Submit your final sales tax return. If you didn’t collect any tax after September 2025, mark it as “zero.”
- Save your confirmation and any other paperwork for your records.
This won’t affect your income tax filings or any other business obligations. It just tells the state you’re done with sales tax.
Charged Sales Tax by Mistake? Don’t Keep It
Let’s say you update your lease but forget to remove the sales tax line item. Or your software keeps charging it after the repeal date. If that happens, don’t panic but don’t pocket the tax either.
Florida law requires you to either:
- Refund the tax to the tenant and keep a clear record of the correction, or
- Remit the tax to the Department of Revenue, even if it was collected by mistake
Already filed a return with the incorrect amount? You’ll need to submit an amended return or request a refund through the state. Keeping sales tax you weren’t supposed to charge can trigger penalties or open you up to legal trouble.
Make Sure Your Systems Are Up to Date
A few extra steps will help you avoid confusion when this change takes full effect.
- Review and update your lease agreements and invoices to remove any reference to state sales tax
- Adjust your accounting software to stop calculating sales tax on commercial rent
- Let your bookkeeper or CPA know about the repeal so your year-end filings match what actually happened
You should also hang onto records showing when you charged sales tax and when you stopped. If the state audits your business later, those files can prove you followed the law.
The Bottom Line
Florida made life a little easier by dropping sales tax on commercial rent, but that doesn’t mean you can ignore the loose ends. As long as you update your leases, notify the state properly, and keep your records clean, you’re in good shape.
For most landlords, this is a simple cleanup task. But if you’re unsure about how this affects your business, DiMercurio Advisors can help you double-check your setup and close your account without drama.
No more monthly rent returns. No more wondering if you filed on time. Just one less thing on your to-do list.
