Since 2017, I’ve been reporting on Florida’s status as the only state that charged sales tax on commercial rents. Not long ago, commercial tenants in South Florida were paying a hefty 7% sales tax on their monthly rent. I was one of the first to break the news that this would drop to 3% in 2024. And just a few weeks ago—while I was away on vacation—I spotted the best news yet: the sales tax is disappearing altogether on October 1, 2025.
That is great news for businesses in Florida, but bad news for my map making. In my May, 2023 blog post, I put together a map of all states that had a sales tax on commercial rents. Coincidentally, it was also a map of all the states where alligators were thrown through drive through windows and where people had been arrested for breaking into their neighbor’s house to pet their cat. Guess I picked the wrong week to stop making maps.
Yes, strange things continue to happen here in Florida. We can’t help you there, but if you lease office, warehouse or retail space in Florida, you’re about to get your rent reduced. And that’s an additional incentive if you’re planning a move to the Sunshine State.
But another map shows the primary financial reason people come to Florida. It also helps to explain why our Florida Panthers have won two straight Stanley Cups. Florida is one of only nine states with no State income tax – and only five of those have hockey teams.
That’s me braving a torrential downpour on Ft. Lauderdale Beach to attend The Florida Panthers 2024 Stanley Cup Celebration
So if you are a New York Ranger, making the NHL average salary of $2.5 million per year, you are paying around $200,000 in state income tax and an additional $100,000 in city income tax. So signing with the Panthers gets you a $300,000 raise. If it’s me, I’m headed south. Unfortunately, this hasn’t worked for the Miami Dolphins
Even for those of us making a few dollars less, this shows why 1,000 people per day are moving to Florida and why Florida has passed New York as the third most populous state. We can therefore expect demand for South Florida commercial space to remain strong. But if you’re making less than $2.5 million and still working the drive-through, please be careful!
