If you own or lease commercial space in Florida, 2025 brings good news, the Florida Business Rent Tax (BRT) has been significantly reduced, making it more affordable for businesses to lease commercial property.
This change impacts both landlords and tenants and understanding it can help you make smarter leasing and investment decisions.
What Is the Business Rent Tax?
The Business Rent Tax is a statewide sales tax applied to commercial lease payments, meaning tenants pay tax on their rent. It’s unique to Florida, and it has long been a deciding factor in lease negotiations.
As of June 2024, the rate dropped to 2%, a major reduction from the previous 4.5%–5.5% range. This lower rate continues into 2025, offering substantial savings for tenants and stronger leasing appeal for property owners.
As of October 1, 2025, the state portion of the tax is reduced to 2% for taxable commercial lease payments made for rental periods beginning on or after that date.
This means the reduction does not apply retroactively to rent paid before October 1, 2025. Any payments covering periods prior to that date remain taxed at the previous rate.
What This Means for Business Owners and Landlords
For Tenants:
Lower rent tax means reduced occupancy costs, freeing up cash for operations or expansion. It’s an ideal time to negotiate longer lease terms to lock in savings.
For Landlords:
Expect increased leasing activity as businesses look to secure new spaces while tax rates remain low.
Lower tax burdens make your property more attractive to prospective tenants.
Partnering with an experienced commercial leasing broker ensures your listings reach qualified businesses quickly and competitively.
A Smart Time to Revisit Your Strategy
Whether you’re a business owner looking to lease space or a property owner ready to fill vacancies, this tax reduction creates opportunity.
Review your lease terms, pricing, and marketing approach to make sure you’re aligned with current market conditions.
Need Guidance?
Serving Palm Beach, Broward, and Miami-Dade Counties, Ynelis Luna of TriCounty Brokers helps landlords and business owners navigate commercial leasing, property management, and market positioning with clarity and strategy.
About the Author
Ynelis Luna is a licensed Commercial Real Estate Broker and Property Manager with over two decades of experience in South Florida’s commercial property market. She is the founder of TriCounty Brokers, a boutique brokerage serving Palm Beach, Broward, and Miami-Dade Counties.
Luna specializes in office, retail, and industrial leasing, investment sales, and full-service property management. Her deep knowledge of market trends, compliance requirements, and tenant-owner relations makes her a trusted advisor.
Beyond her brokerage work, Luna is the voice behind the Women Redefining Real Estate podcast and a recognized advocate for entrepreneurship, women in business, and authentic reinvention.