Starting October 1, 2025, Florida will eliminate the sales tax on commercial leases, making rent tax-free for businesses. House Bill 7031 also includes corporate tax updates, new sales tax holidays on outdoor gear, permanent exemptions for bullion and safety gear, and expanded tax credits for housing families of sick children.
Sales Tax Ends on Commercial Leases
Starting October 1, 2025, businesses no longer have to pay sales tax on commercial rent. This ends Florida’s long-standing lease tax and puts more money back in business owners’ pockets.
What You Need to Know:
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- Rent charged before October 1 is still taxable.
- Rent charged on or after October 1 is tax-free.
- Business owners should review lease agreements now to stay in compliance.
New Tax Holidays and Permanent Exemptions
The bill also brings temporary tax breaks and permanent exemptions to help Floridians save:
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- Outdoor gear (hunting, fishing, camping) is tax-free from September through December 2025.
- Permanent exemptions added for:
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- Bullion (gold, silver, platinum)
- Workplace safety gear
- Admission to cultural events
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Corporate and Property Tax Changes
The law also improves the corporate and property tax systems:
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- “Home Away From Home” tax credit helps businesses fund housing for families of seriously ill children.
- Data centers stay exempt from sales tax on equipment through 2037, now requiring 100 megawatts of power use to qualify.
- Corporate tax rules now match federal rules.
- Property tax appeals are easier with online hearings and clearer filing deadlines.
What Businesses Should Do Now:
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- Check lease terms for correct rent tax handling.
- Update systems to apply new exemptions.
- Watch for updates from the Florida Department of Revenue.
Key Takeaways
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- No sales tax on business rent after October 1, 2025
- Seasonal tax break for outdoor gear
- Long-term support for data centers and corporate housing credits
- Permanent sales tax exemptions for bullion, safety gear, and cultural events
- Corporate rules now align with federal law
- Property tax appeals move online with clear deadlines
For help staying compliant, talk to the State and Local Tax team at Holland & Knight. These changes give Florida businesses more ways to grow—but it’s on us to get the details right.
