Florida’s Commercial Lease Tax Drops to 0% This October — What Gainesville Businesses Need to Know

By: Makayla Richardson Commercial Realtor

Big news for businesses across Gainesville and North Florida: starting October 1, 2025, Florida

will officially eliminate the state sales tax on commercial leases, dropping it from 3.5% to 0%

under House Bill 7031, signed into law by Governor Ron DeSantis.

This is the biggest shift we’ve seen in Florida’s commercial real estate landscape in decades —

and it’s going to directly impact your bottom line if you lease office, retail, or industrial space.

Why This Matters for Gainesville Businesses

For over 50 years, Florida was the only state in the country that taxed commercial rent, putting

local businesses at a disadvantage compared to those in other states. This tax has cost

Gainesville businesses thousands of dollars a year in unnecessary expenses.

Now, with the state tax dropping to 0%, Gainesville companies can expect major savings

starting October 1, 2025. This means lower occupancy costs, more flexibility to expand, and

stronger cash flow for reinvesting in your team, marketing, or operations.

While the state tax is going away completely, Gainesville businesses should know that local

sales tax will still apply — but even that rate is going down. For example, the local portion of the

tax is expected to drop from 3.5% to 1.5%, delivering even more relief for businesses leasing

commercial property in our city.

Whether you already lease space or you’re thinking about opening a new location, now is the

perfect time to plan your next move:

✅ Review your lease: Talk with your landlord about how the tax change affects your current

agreement.

✅ Explore opportunities: Consider expanding or relocating now that occupancy costs will be

significantly lower.

✅ Get professional guidance: As a commercial real estate professional specializing in

Gainesville and North Florida, I can help you navigate these changes to make the most of your

lease strategy.

This tax cut isn’t just good news for individual businesses — it’s a major boost to Florida’s

competitiveness as a whole. By eliminating this outdated tax, our state becomes an even more

attractive place for new businesses to launch and existing companies to grow. That’s great for

Gainesville’s economy, our communities, and future job growth.

📩 Have questions about what this means for your business?

Contact me today or visit GainesvilleCommercial.com to schedule a consultation. Let’s make

sure you’re ready to take full advantage of these historic savings.