Clarification on Commercial Rent Tax
As we explained in the January edition of this newsletter, the sales tax charged on commercial rent has decreased to 5.5% effective January 1, 2020.
We need to clarify that in addition to paying 5.5% in state sales tax, businesses also must pay the county’s sales tax rate as well. Every county in the state of Florida (except Citrus county) charges a local sales tax that is on top of the state sales tax rate. These county tax rates vary from .5% additional tax to 2.5% additional tax. When you add your county’s tax to the state’s tax, the total tax rate on commercial rent will be more than 5.5%.
For example, Hillsborough County’s local sales tax rate is 2.5%. That means every sale in Hillsborough County is subject to an additional 2.5% of sales tax, making commercial rent in Hillsborough County subject to an 8% tax.
To see what your county’s local tax rate is, click here.