REALWorld Law

Commercial leases

VAT on rent

Is VAT charged on rent?

United States

United States

There is no value added tax on rents in the US. However, some city and other local governmental authorities do impose sales or occupancy taxes on rents. In some instances, such taxes are only levied against particular types of property. For example, some local governmental authorities may impose a tax if the lease term for a particular lease exceeds a certain length of time. Please consult with a local lawyer for details of the taxation applicable in any given locality.