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Florida tax rate changes effective January 2018

 Several tax changes will take effect in Florida on January 1, 2018.


Several tax changes are set to take effect in Florida on Jan. 1, 2018. They range from a new communications services tax jurisdiction to a new exemption for feminine hygiene products.

State sales tax on the rental of real property

Florida state sales tax and applicable local option discretionary sales surtax apply to the total charge for leasing, letting, renting, or granting a license to use real property such as commercial office space, retail space, self-storage units, and warehouses. As of Jan. 1, 2018, the state sales tax rate on these transactions drops from 6 to 5.8 percent.

Tax should be charged at the rate in effect when the tenant occupies, or is entitled to occupy, the space. For example, the 6 percent state sales tax rate applies for rental periods beginning prior to Jan. 1, 2018, even if rent is paid after Jan. 1. For rental periods beginning Jan. 1, 2018, or later, the 5.8 percent rate applies even if rent is paid prior to Jan. 1. Additional information.

Florida uses a bracket system to determine the tax on sales in between whole dollar amounts. The Florida Department of Revenue provides explains how the bracket system works in its Sales Tax FAQs.

New communications services tax jurisdiction

A new local jurisdiction in Palm Beach County will be established Jan. 1, 2018. The City of Westlake will have a communications services tax (CST) rate of 5.22 percent and a county surtax of 0.60 percent, for a total local CST tax rate of 6.82 percent. See additional details from the Department of Revenue.

Tampon tax exemption

“Products used to absorb menstrual flow” are exempt from sales tax under House Bill 7109 enacted this spring. Exempt products include, but aren’t limited to, menstrual cups, pantiliners, sanitary napkins, and tampons.

Tax refund on the resale of admissions to an exempt entity

HB 7019 also entitles a purchaser of an admission to a refund or credit from the Department of Revenue “for the amount of tax paid on its purchase” if he or she resells the admission “to an entity that is exempt from sales and use tax … for any reason other than sale for resale.”

Tax automation software simplifies sales and use tax compliance for businesses in Florida and other states. Learn more.

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Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Gail Cole
Avalara Author
Gail Cole
Gail Cole
Avalara Author Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.