Compliance & Tax · Florida
Car Rental Business Regulations in Florida
Florida car rental operators must register the business with the Division of Corporations, register as a dealer with the Department of Revenue, register vehicles with the Florida DHSMV, and collect a $2 per day rental car surcharge plus 6 percent state sales tax. Peer-to-peer car-sharing agreements carry a lower $1 per day surcharge.
Last reviewed: September 2026. Verify current requirements with the Florida Department of Revenue and FLHSMV.
Florida requirements at a glance
| Rental car surcharge | $2 per day, first 30 days only |
| Peer-to-peer car-sharing surcharge | $1 per day, first 30 days only |
| Car-sharing under 24 hours | $1 per usage |
| State sales tax | 6% |
| County discretionary surtax | Up to 1.5% |
| Is the surcharge taxable? | Yes, sales tax applies to the surcharge |
| Insurance system | No-fault, PIP required |
| Minimum insurance | $10,000 PIP + $10,000 property damage |
| Registration form | DR-1, Florida Business Tax Application |
| Business registration | Florida Division of Corporations |
| Vehicle registration | Florida DHSMV |
What licenses do you need to rent cars in Florida?
Register the business entity with the Florida Division of Corporations, then register with the Department of Revenue as a dealer specifically for remitting the rental car surcharge, using Form DR-1.
Motor vehicle rental companies must register each place of business located in Florida separately. Car-sharing services and peer-to-peer car-sharing programs are required to submit their own registration application.
That per-location requirement catches operators who expand to a second pickup point and assume their existing registration covers it.
What is the Florida rental car surcharge?
Florida imposes a $2 per day surcharge on the rental of a for-hire passenger motor vehicle designed to carry fewer than nine passengers, under Fla. Stat. 212.0606. It applies to any part of a day and only to the first 30 days of a rental.
Peer-to-peer car sharing is charged differently
A car-sharing program agreement involving a shared vehicle registered in Florida carries a $1 per day surcharge rather than $2. If the car-sharing period is less than 24 hours, the surcharge is $1 per usage.
That difference matters if you operate both direct rentals and marketplace listings from the same fleet, because the correct surcharge depends on how the booking was made rather than which vehicle went out.
The surcharge is itself taxable
Florida law requires sales tax to be charged on the $2 per day surcharge, and it must be listed separately on the invoice.
The surcharge applies regardless of whether the rental occurs in person or through digital means, and regardless of whether the vehicle is licensed in Florida.
What sales tax applies to Florida car rentals?
6 percent state sales tax, plus a county discretionary sales surtax of up to 1.5 percent depending on the county.
On a $400 seven-day rental, the surcharge adds $14, and the surcharge itself is taxed alongside the rental. Counties set their own surtax rates, so a Miami-Dade rental and a rural county rental carry different totals.
Airports levy their own concession recovery charges on top. Those are set by the airport authority rather than the state.
How does Florida's no-fault system affect rental operators?
Florida is a no-fault state requiring personal injury protection. Minimum coverage is $10,000 PIP and $10,000 property damage liability. Florida does not require bodily injury liability for most drivers, though it is required for commercial drivers.
This is the single biggest thing operators moving into Florida get wrong. In most states, verifying a renter's liability coverage is the core check. In Florida, the structure is different, and many credit card rental coverage benefits do not extend to Florida rentals because of the PIP requirement.
For your own fleet, the $10,000 property damage minimum is well below the replacement cost of most vehicles. Treat it as a legal floor rather than adequate protection and confirm appropriate commercial coverage with a broker who works with rental fleets.
What are Florida's renter age rules?
Florida permits young renter surcharges, and the market standard runs roughly $20 to $35 per day for renters under 25.
Set your own policy, write it into your terms, and apply it consistently to every renter who meets the criteria.
Frequently asked questions
$2 per day, or any part of a day, on rentals of for-hire passenger vehicles carrying fewer than nine passengers. It applies only to the first 30 days of a rental.
Yes. Peer-to-peer car-sharing program agreements involving vehicles registered in Florida carry $1 per day rather than $2, or $1 per usage for periods under 24 hours.
Yes. Florida law requires sales tax to be charged on the surcharge, and it must be listed separately on the invoice.
6 percent state sales tax plus a county discretionary sales surtax of up to 1.5 percent, depending on the county.
Yes. Motor vehicle rental companies must register each place of business located in Florida with the Department of Revenue.
The state minimum is $10,000 PIP and $10,000 property damage liability. Florida does not require bodily injury liability for most drivers, though commercial drivers must carry it.
Only to the first 30 days of a rental or car-sharing period.
Related
Neighboring states: Georgia · Alabama · South Carolina
Sources: Fla. Stat. 212.0606 · Florida Department of Revenue