What Buyers and Sellers Need to Know Before Closing
Most Florida real estate transactions involve state taxes that appear on the closing statement, and they often surprise buyers and sellers who are seeing these charges for the first time.
The two main taxes involved are:
- Documentary stamp tax (commonly called “doc stamps”)
- Nonrecurring intangible tax
Depending on whether a property is being purchased with financing, these taxes can add hundreds or thousands of dollars to closing costs.
If you are buying, selling, or refinancing a property in Miami-Dade, Broward, Palm Beach, or anywhere in Florida, understanding how these taxes work can help you avoid surprises at the closing table.
What Is Florida Documentary Stamp Tax?
Florida documentary stamp tax is a state tax imposed on certain documents that transfer an interest in real estate or create an obligation to pay money.
In a typical real estate transaction, documentary stamp tax may apply in two different situations:
1. The deed transferring ownership
When a seller transfers property ownership to a buyer, documentary stamp tax is calculated based on the purchase price or other taxable consideration.
2. The mortgage loan documents
When a buyer obtains financing, documentary stamp tax also applies to the debt obligation created by the mortgage loan, generally calculated based on the amount of the promissory note or indebtedness.
A separate tax, called the nonrecurring intangible tax, applies to the mortgage itself.
Although these taxes often appear together on the closing statement, they are separate taxes applied to different documents.
Documentary Stamp Tax on the Deed: How Much Is It and Who Pays?
The documentary stamp tax on a deed is based on the property’s taxable consideration, which is usually the purchase price.
Standard Florida Rate
The statewide rate is:
$0.70 per $100 of consideration
Example:
A $400,000 property:
$400,000 ÷ 100 × $0.70 = $2,800
Miami-Dade County Documentary Stamp Tax Rules
Miami-Dade County has a unique documentary stamp tax structure.
For a single-family residence, the rate is:
$0.60 per $100 of consideration
Example:
A $500,000 single-family home:
$500,000 ÷ 100 × $0.60 = $3,000
For certain properties that do not qualify as a single-family residence, such as some commercial, multifamily, vacant land, or investment properties, Miami-Dade may impose:
- $0.60 per $100 documentary stamp tax
- Plus a $0.45 per $100 surtax
Total:
$1.05 per $100
Example:
A $500,000 non-single-family property:
$500,000 ÷ 100 × $1.05 = $5,250
Because the classification of a property can affect the tax amount significantly, the closing agent should confirm the correct treatment before calculating the final figures.
Who Pays the Deed Documentary Stamp Tax?
In most Florida residential transactions, the seller customarily pays the documentary stamp tax on the deed.
The amount is usually deducted from the seller’s proceeds at closing.
However, this is a customary practice, not a requirement that cannot be changed. The purchase contract can assign responsibility differently.
Documentary Stamp Tax on the Mortgage Note
When a buyer finances a property purchase, another documentary stamp tax applies to the loan obligation.
The rate is:
$0.35 per $100 of the loan amount
Example:
A buyer obtains a $400,000 mortgage:
$400,000 ÷ 100 × $0.35 = $1,400
This tax is typically paid by the buyer or borrower.
Is There a Maximum Amount?
Yes.
Florida places a maximum documentary stamp tax of:
$2,450 on the promissory note
The maximum is reached when the loan amount reaches approximately $700,000.
What Is the Nonrecurring Intangible Tax on a Florida Mortgage?
The nonrecurring intangible tax is a one-time state tax imposed on new mortgages secured by Florida real estate.
The rate is:
2 mills
or:
$0.20 per $100 of the mortgage amount
Unlike the mortgage documentary stamp tax, there is no maximum cap.
Example:
A $400,000 mortgage:
$400,000 × 0.002 = $800
This tax is generally paid by the buyer or borrower.
Who Pays These Taxes in Florida?
The customary allocation is:
| Tax | Rate | Usually Paid By |
| Deed documentary stamp tax | $0.70 per $100 statewide; $0.60 per $100 for qualifying Miami-Dade single-family residences | Seller |
| Mortgage documentary stamp tax | $0.35 per $100 of loan amount (maximum $2,450) | Buyer/Borrower |
| Nonrecurring intangible tax | $0.20 per $100 of mortgage amount | Buyer/Borrower |
These are customary practices. The contract between the parties can change who pays these costs.
Example: Miami-Dade Home Purchase
Assume:
- Purchase price: $500,000
- Property type: Single-family residence in Doral, Florida
- Mortgage amount: $400,000
Seller Pays:
Deed documentary stamps:
$500,000 ÷ 100 × $0.60
= $3,000
Buyer Pays:
Mortgage documentary stamps:
$400,000 ÷ 100 × $0.35
= $1,400
Nonrecurring intangible tax:
$400,000 × 0.002
= $800
Total Buyer Mortgage-Related Taxes:
$2,200
Comparing Miami-Dade With Other Florida Counties
Using the same $500,000 single-family home:
Broward or Palm Beach County
Deed documentary stamps:
$500,000 ÷ 100 × $0.70
= $3,500
The difference:
$500 more than a qualifying Miami-Dade single-family residence
Miami-Dade Property Subject to the Surtax
If the property does not qualify as a single-family residence:
$500,000 ÷ 100 × $1.05
= $5,250
The surtax increases the tax by:
$2,250
This is why properly classifying the property before closing is important.
How Do These Taxes Work in Special Situations?
Cash Purchases
If there is no mortgage:
- No mortgage documentary stamp tax
- No intangible tax
However, deed documentary stamp tax still applies.
Refinances
A refinance generally does not involve a transfer of ownership, so deed documentary stamp tax usually does not apply.
However, the new mortgage created during a refinance may be subject to mortgage-related taxes, including documentary stamp tax and nonrecurring intangible tax.
Certain refinancing situations may involve specific exceptions, credits, or calculations, so the closing agent should review the details of each transaction.
Gifts and Transfers Without a Traditional Sale
Transfers for little or no money can still create documentary stamp tax obligations in certain situations.
Transfers involving existing mortgages or assumed debt can also create taxable consideration.
Because these transactions can be complex, it is important to have the closing agent review the specific circumstances.
Let CrossPoint Handle the Closing Details
Documentary stamp taxes and intangible taxes must be calculated correctly, collected, and properly handled during the recording process.
At CrossPoint Title & Escrow Group, we help buyers, sellers, lenders, and real estate professionals navigate Florida closing requirements with accurate calculations and professional guidance throughout the transaction.
Whether you are purchasing, selling, or refinancing property in Miami-Dade, Broward, or Palm Beach County, our team helps ensure your closing documents and fees are handled correctly.
For accurate closing cost information for your transaction, contact CrossPoint Title & Escrow Group.
Call: (786) 867-7714
Frequently Asked Questions
How much is documentary stamp tax in Florida?
Florida documentary stamp tax on deeds is generally $0.70 per $100 of consideration. In Miami-Dade County, qualifying single-family residences are generally taxed at $0.60 per $100, while certain other property types may also include the $0.45 surtax.
Who pays documentary stamp tax in Florida?
The seller customarily pays the documentary stamp tax on the deed. The buyer or borrower typically pays mortgage documentary stamps and intangible tax when financing a property. However, the contract may assign these costs differently.
What is the intangible tax on a Florida mortgage?
The nonrecurring intangible tax is 2 mills, or $0.20 per $100 of the mortgage amount. It is a separate tax from mortgage documentary stamps and has no maximum cap.
Do you pay documentary stamps on a cash purchase in Florida?
Yes. Documentary stamp tax on the deed still applies. However, because there is no mortgage, there are no mortgage documentary stamps or intangible tax.
Do you pay deed documentary stamps when refinancing?
Generally, no, because ownership is not transferred. However, taxes related to the new mortgage may apply depending on the refinance transaction.