Florida has officially repealed its long-standing Business Rent Tax (BRT) on commercial leases, a move that took effect on October 1, 2025. This significant change, championed by Florida Realtors, is projected to save businesses across the state an estimated $2.5 billion annually. The elimination of this tax, which has been in place for 57 years, is expected to enhance Florida’s competitiveness in attracting and retaining businesses, fostering economic growth, and providing much-needed capital for expansion and job creation.
Key Takeaways
- The Business Rent Tax, in effect since 1968, has been fully repealed.
- Commercial tenants in Florida will save approximately $2.5 billion annually.
- The repeal positions Florida to be more competitive in attracting businesses nationwide.
- Advocacy efforts by Florida Realtors and local Realtor associations were instrumental in achieving the repeal.
A Long Road to Repeal
The Business Rent Tax, initially established in 1968, has seen its rate fluctuate over the decades, eventually reaching 6% before being gradually reduced in recent years, hitting 2% in June 2024. Florida Realtors has been a leading advocate for its elimination for years, making it a top legislative priority. The repeal was approved by lawmakers as part of a larger tax bill in June 2025.
Economic Impact and Benefits
The elimination of the BRT means that commercial tenants will no longer pay sales tax on their leases, including state sales tax and local discretionary surtaxes. This infusion of capital is expected to empower businesses to expand operations, hire more employees, invest in new equipment, and improve employee benefits and salaries. Small business owners, in particular, will have greater flexibility to grow and potentially lower costs for consumers, thereby strengthening local economies. Landlords and property managers will also benefit from reduced compliance burdens.
A Unified Advocacy Effort
The journey to repeal the BRT was a collaborative effort spanning over 15 years. It began with discussions at the local level, such as within the MIAMI Association of REALTORS®, highlighting Florida’s disadvantage as the only state taxing commercial leases. Comprehensive studies commissioned by Florida Realtors confirmed this unique burden, leading to a rebranding of the issue as the "Business Rent Tax" to resonate more effectively with lawmakers and the public. This unified message, supported by various business organizations and stakeholders, ultimately led to legislative action and the tax’s eventual demise.
What the Repeal Covers
The repeal applies to all rent or license fees for commercial real property effective October 1, 2025. Rent covering periods up to September 30, 2025, remains taxable, even if paid after the repeal date. It’s important to note that the repeal does not extend to short-term residential rentals (six months or less), parking, or storage for vehicles, boats, or aircraft, which remain taxable under other provisions of Florida law. Businesses are advised to update lease templates and accounting systems to reflect these changes and ensure savings are recognized promptly.
Sources
- Florida Ends 57-Year Tax on Commercial Leases Today, | Florida Realtors.
- Florida commercial lease tax ends after decade-long fight, The Business Journals.
- Florida Ends Commercial Rent Tax in Major Win for REALTORS®, CommercialSearch.