By Frederic Gagne
Owning a rental property in Florida comes with its own set of tax issues, particularly when it comes to U.S. sales tax. In Florida, short-term rentals of residential properties (e.g., houses, apartments, condos, etc.) are subject to several taxes, including state sales tax, local sales surtax, and tourist development tax (TDT).
The obligations to collect and remit these taxes depend on the state’s legal framework, local regulations, and whether the rentals are made directly by the owner or through a rental platform (e.g., Airbnb).
The Florida State Sales Tax of 6%, plus any applicable discretionary sales surtax, applies to rental fees or room rates paid for the right to use or occupy a dwelling or lodging for rental periods of six months or less.
Florida counties may impose optional local taxes, such as TDT, on short-term rentals. These taxes are in addition to the 6% state sales tax and any applicable discretionary sales surtax.
Most counties administer the TDT on short-term rentals themselves. In these counties, the vacation rental tax is reported and paid directly to the county, while the state sales tax and any applicable surtax are reported and paid to the Florida Department of Revenue.
In cases where Airbnb has an agreement with the county to collect and remit sales tax, local surtax, and TDT, the owner does not have to collect or remit these taxes themselves for rentals made through Airbnb. However, it should be noted that these agreements vary by county and may change over time.
In conclusion, any owner of a residential property in Florida who rents it for periods of less than six months continuously to the same tenant must register for state sales tax and local surtax and collect them, as there is no small supplier threshold for sales tax registration in Florida. In addition, as a general rule, the owner will have to register with the county in order to collect and remit the applicable TDT on rentals. However, the owner may be eligible for certain relief when registering for state sales tax and TDT if all rentals are made through Airbnb and the platform has an agreement to collect and remit on behalf of the owner in the county where the property is located.
Please do not hesitate to contact us if you have any questions about the application of sales taxes for your rental property located in Florida.
