💸 Major Tax Relief: What Florida’s New Tax Laws Mean for Your Business and Wallet (2025 Update)
Florida has rolled out one of its most significant tax relief packages in recent history, totaling over $2 billion in cuts for both businesses and consumers. Governor Ron DeSantis signed these sweeping changes (HB 7031) into law, and consequently, they introduce permanent exemptions, expanded tax holidays, and the elimination of a long-standing business tax.
This article, tailored for The Taxman 59, dives into the key legislative updates. Therefore, you need to know these changes to optimize your finances in the Sunshine State.
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The End of Florida’s Business Rent Tax (BRT)
Undoubtedly, this is the most impactful change for Florida businesses.
What’s Changing: Effective October 1, 2025, Florida will entirely repeal the state sales tax on commercial leases of real property. As a result, this is a massive win, since Florida was the only U.S. state to levy a sales tax (often called the “Business Rent Tax”) on commercial rent.
Impact: Economists project this elimination will save businesses an estimated $1.53 billion annually. Commercial tenants and landlords must review existing lease agreements and adjust billing to ensure compliance for occupancy periods starting on or after October 1, 2025.
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🛍️ Permanent and Expanded Sales Tax Exemptions
The new law introduces permanent tax relief for many everyday and preparedness items.
Permanent Exemptions (Effective August 1, 2025)
The state permanently eliminated the sales tax for essential items, primarily focusing on safety, health, and emergency preparedness:
Disaster/Hurricane Prep: You no longer pay tax on batteries (all common sizes: AA, AAA, C, D, 6V, 9V), smoke detectors, carbon monoxide detectors, fire extinguishers, and gas cans.
Health & Safety: Sunscreen, insect repellent, and bicycle helmets are now tax-free.
Recreation: Admission to Florida’s State Parks is exempt.
Financial Assets: Furthermore, you can purchase gold, silver, and platinum bullion tax-free (effective October 1, 2025).
Expanded and New Tax Holidays
The state set several popular sales tax holidays to be expanded or made permanent:
Permanent Back-to-School Holiday: This tax-free period for school supplies, clothing, and certain electronics will now run annually for the entire month of August.
New Seasonal Holiday: In addition, a special “Hunting, Fishing, and Camping” sales tax holiday will run from September 8 through December 31, 2025, covering items like tents, sleeping bags, fishing gear, and certain firearms/ammunition (subject to price caps).
🏡 Proposed Property Tax Relief
While the Legislature has not fully enacted them, major proposals are underway to address property tax burdens on homeowners.
Governor DeSantis and the Legislature are actively pursuing measures that could drastically alter property taxation. For instance, they may put a constitutional amendment to a statewide vote in 2026. Proposed relief includes:
A significant $500,000 homestead exemption for primary residences.
Proposals for a potential $1,000 rebate check for homeowners by late 2025.
A long-term goal to potentially eliminate property taxes on homestead properties entirely, thus making Florida the most tax-friendly state for homeowners.
SEO Focus: Target keywords like “Florida property tax reform 2025,” “new homestead exemption Florida,” and “Florida tax cuts for homeowners.”
📈 Key Takeaways for Taxpayers
Florida’s 2025 legislative tax package overwhelmingly focuses on relief and reduction. Consequently, these changes solidify Florida’s reputation as a low-tax state, attracting both new businesses and residents. Review your business structures and purchasing habits now to maximize these new savings.
| Tax Change | Impact | Key Date |
| Commercial Rent Tax | The state repealed this entirely. Major savings for businesses. | October 1, 2025 |
| Permanent Exemptions | Essential goods (batteries, sunscreen, etc.) are now tax-free year-round. | August 1, 2025 |
| Back-to-School Holiday | The state expanded this to run for the entire month of August annually. | Every August |
| Property Tax | Major relief proposals are moving through the legislative process. | TBD (2025/2026) |