Florida Business Tax Law Changes: Key Updates Every CFO Should Know 

1. Permanent Elimination of the Business Rent Tax

In a landmark move, Governor Ron DeSantis announced the permanent repeal of Florida’s Business Rent Tax as part of the “Focus on Fiscal Responsibility” budget. This tax relief measure is projected to save Florida businesses approximately $1.6 billion, directly benefiting companies that lease commercial properties. The elimination of this tax aims to reduce operational costs and stimulate economic growth within the state. ​Florida Governor’s Office 

2. Adjustments to Standard Deduction Amounts

The IRS has implemented inflation-related adjustments to the standard deduction for the 2025 tax year. For single filers and married individuals filing separately, the standard deduction has increased to $15,000, up from $14,600 in 2024. Married couples filing jointly will see an increase to $30,000, up from $29,200. These changes may influence withholding calculations and overall tax planning strategies for employees and businesses alike. ​U.S. Bank+1Henderson Franklin+1plgteam.com 

3. Proposed Reduction in State Sales Tax

Florida lawmakers are considering a proposal to reduce the state sales tax rate from 6% to 5.25%. This initiative, led by House Speaker Daniel Perez, aims to make Florida more affordable and stimulate consumer spending. If enacted, this reduction could have significant implications for businesses, particularly those in retail and consumer services, by potentially increasing sales volume and altering pricing strategies. ​Florida Department of Revenue+2WUSF+2Florida Department of Revenue+2 

4. Introduction of the Home Away From Home Tax Credit

The Florida Senate has introduced the Home Away From Home Tax Credit, designed to provide tax incentives for eligible charitable contributions. The credit is capped at $2.5 million per fiscal year, with specific procedures and requirements for application and compliance. Businesses engaging in qualifying charitable activities may benefit from this credit, enhancing their corporate social responsibility initiatives while optimizing tax liabilities. ​Florida Senate+1Florida Senate+1 

5. Adjustments to Corporate Income Tax Rates

While Florida’s corporate income tax rate remains unchanged, it’s essential for CFOs to monitor potential federal tax changes that could impact overall tax planning. Discussions at the federal level include possible adjustments to corporate tax rates, which may influence business decisions and financial strategies. ​ 

Strategic Recommendations for CFOs: 

• Review Lease Agreements: With the elimination of the Business Rent Tax, reassess current and future lease agreements to capitalize on potential cost savings.​Florida Governor’s Office 

• Update Payroll Systems: Adjust payroll systems to reflect the new standard deduction amounts, ensuring accurate withholding and compliance.​ 

• Monitor Legislative Developments: Stay informed about the proposed sales tax reduction and other legislative changes that may affect business operations and financial planning.​ 

• Explore Tax Credits: Evaluate eligibility for the Home Away From Home Tax Credit and consider integrating qualifying charitable contributions into the company’s tax strategy.​Florida Senate+1Florida Senate+1 

Navigating these tax law changes requires a proactive and informed approach. Partnering with experienced tax professionals can provide the necessary insights and strategies to ensure compliance and optimize financial performance. At Powerhouse Anchor Management Consulting (PAMC), we specialize in guiding businesses through complex tax landscapes, offering tailored solutions to meet your unique needs.​ 

Stay Ahead with PAMC 

Understanding and adapting to Florida’s evolving tax laws is essential for maintaining a competitive edge. Contact PAMC today to develop a comprehensive tax strategy that aligns with the latest legislative changes and positions your business for success.