Florida – Sales Tax on Property Rentals

2/01/2013

SALT Report 2103 – In the latest edition of Facts on Tax, the Florida Department of Revenue discussed the application of sales and use tax on the rental or lease of living and sleeping accommodations and commercial real property in Florida.

Living or Sleeping Accommodations

The 6% state sales tax is due on rental charges and room rates paid for the right to use living or sleeping accommodations.  Examples of taxable rentals include, but are not limited to:

  • Hotel or motel
  • Apartment houses or any other multiple unit structures, such as a duplex, triplex, quadraplex, or condominium
  • Single-family dwellings,
  • Beach houses or cottages, and
  • Mobile homes

Commercial Real Property

State sales tax is due at the rate of 6% on the total rent paid for the right to use or occupy commercial real property, unless the rent is exempt.  If the tenant makes payments on behalf of the landlord, those payments are classified as rent and are subject to tax.  Payments for separately stated services that are required under the lease or license are considered part of the taxable total rent paid.  Examples include, but are not limited to:

  • Office or retail space,
  • Warehouses,
  • Convention and meeting rooms, and
  • Mini-warehouses

Local Option Taxes

Rental payments that are subject to state sales tax are also subject to any locally imposed discretionary sales surtax. The local discretionary sales surtax rate is determined by the county where the rental property is located.

Some counties also impose local tourist development tax on rentals of living or sleeping accommodations. If the Department of Revenue collects a county’s tourist development tax; you will report and pay the local tax plus the state 6% tax to the Department on your sales and use tax return.

The following brochures provide additional information regarding exemptions, subleases, using a real estate brokerage firm, and how to register to collect and pay tax:

For Further Information

Florida Department of Revenue – Facts on Tax