Sales Tax on Commercial Rent in Florida
In Florida, commercial rent is subject to sales tax, a nuance that often confuses business owners. Whether you’re leasing retail, office, or industrial space, it’s essential to understand how sales tax applies to your rent payments. Florida's tax laws require sales tax to be charged on the rental of non-residential real property. The sales tax rate is generally 6% at the state level, with certain counties adding local surtaxes, which can increase the total rate you pay.
Calculate Your Sales Tax on Commercial Rent
To simplify the process, use the sales tax on commercial rent calculator below to determine how much sales tax you need to pay based on your monthly rent amount and location in Florida.
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How Sales Tax is Calculated
The Florida Department of Revenue mandates that sales tax on commercial leases be applied to the full rent amount, excluding only certain items like utilities or maintenance charges if specified in the lease agreement. The state’s 6% tax rate is applicable on most commercial leases, but keep in mind that local surtaxes may apply depending on the county where your property is located.
Do You Need to Charge Sales Tax on Commercial Rent?
If you are a property owner or landlord in Florida, you are required to charge and collect sales tax on commercial leases unless the lease is exempt. Some exemptions may apply, including leases to certain government entities or non-profit organizations. Always consult with a tax professional to confirm if your property qualifies for any exceptions.