When Does Sales Tax Apply in Florida Real Estate Transaction?

In Florida real estate transactions, it’s common for a contract to include not just land and structures, but also personal property—things like furniture, appliances, light fixtures, or even golf carts. But many people are surprised to learn that including personal property in a real estate deal can raise sales tax implications if not handled carefully. Let’s break down when sales tax is and is not due on personal property included in a real estate contract.

What Qualifies as Personal Property in Florida?

In Florida, tangible personal property (TPP) includes any physical item that is movable and not permanently affixed to the structure or land. Examples include:

• Freestanding furniture
• Televisions
• Decorative items
• Appliances (if not built-in)
• Golf carts, lawnmowers, etc.

These items are distinct from real property, which includes land and anything permanently attached to it, such as buildings, built-in cabinets, and central HVAC systems.

The General Rule: Personal Property Sales Are Taxable

Under Florida law, the sale of tangible personal property is subject to sales tax unless an exemption applies. This tax must be collected and remitted to the Florida Department of Revenue—usually by the seller, if the sale is separate and distinct from the real estate.

When Is Sales Tax Not Required?

If personal property is incidental to the real estate and not separately itemized or valued in the contract, then it is typically not considered a separate sale, and sales tax is not due. For example, if a seller includes a few pieces of furniture as part of the sale of a home, and no separate value is assigned in the contract or closing statement, Florida law treats the entire transaction as one non-taxable real estate sale.

When Is Sales Tax Required on Real Estate Deals?

Sales tax may be due if the personal property is separately valued or itemized in the contract or closing documents. This is especially common in:

• Commercial transactions (e.g., restaurants, retail spaces)
• Business asset sales
• Residential deals involving high-value personal property (e.g., a $10,000 furniture package)

If there is a separate line item (e.g., “Furniture – $5,000”), that portion may be considered a taxable transaction.

Tips for Realtors to Avoid Sales Tax Surprises

1. Do not assign separate value to personal property without consulting an attorney or tax professional.
2. Educate your clients that separately valued personal property could trigger sales tax liability.
3. Use the FAR/BAR personal property section wisely—leave out dollar amounts if you want to avoid tax issues.

Most residential real estate transactions won’t trigger sales tax—but once you separate and assign value to personal property in the contract, you could be opening the door. When in doubt, consult your trusted Florida real estate attorney.

Author:  Sarah Ferlazzo, Esq. with Berlin Patten Ebling