Tax & Legal
Documentary stamps, intangible tax, surtaxes, and who actually pays what when selling a Florida home.
When real estate changes hands in Florida, several taxes are triggered at closing. Unlike some states that have a single transfer tax, Florida has multiple overlapping taxes that apply to different parts of the transaction. Understanding these taxes helps you accurately estimate your net proceeds from a sale.
The three main transfer-related taxes in Florida are: documentary stamp tax on the deed, documentary stamp tax on the mortgage (note), and intangible tax on the mortgage. One of these is primarily the seller's responsibility, and two are typically the buyer's. Miami-Dade County adds its own surtax that further complicates the picture.
The documentary stamp tax (often called "doc stamps") on the deed is Florida's primary transfer tax. It is calculated based on the sale price of the property.
Rate: $0.70 per $100 of the sale price (or $7.00 per $1,000). This applies in every Florida county except Miami-Dade.
How it is calculated: The tax is computed on the total consideration (sale price) rounded up to the nearest $100. For a $400,000 sale, the documentary stamp tax on the deed would be $400,000 / $100 x $0.70 = $2,800.
Quick reference:
Who pays: By Florida custom and in most purchase contracts, the seller pays the documentary stamp tax on the deed. This is one of the largest seller closing costs outside of real estate commissions.
When the buyer takes out a mortgage to purchase the property, two additional taxes apply to the mortgage (promissory note):
Documentary stamp tax on the note: $0.35 per $100 of the mortgage amount ($3.50 per $1,000). This is charged on the amount the buyer borrows, not the sale price.
Intangible tax on the mortgage: $0.002 per $1.00 of the mortgage amount ($2.00 per $1,000). This is a one-time tax paid when the mortgage is recorded.
Example: If the buyer takes a $320,000 mortgage (80% of a $400,000 purchase):
Who pays: The buyer pays both the documentary stamp tax on the note and the intangible tax. These are buyer closing costs. In a cash sale with no mortgage, these taxes do not apply - which is one reason cash closings have lower total transaction costs.
Miami-Dade County is unique in Florida because it imposes an additional surtax on top of the standard documentary stamp tax on deeds.
Miami-Dade doc stamp rate on deeds: $0.60 per $100 of sale price (instead of the standard $0.70). Yes, the base rate is actually lower in Miami-Dade.
Miami-Dade surtax: $0.45 per $100 of sale price. This applies to all transactions unless the property is a single-family residence and the total consideration is $100,000 or less.
Combined Miami-Dade rate: $0.60 + $0.45 = $1.05 per $100 of sale price ($10.50 per $1,000). This makes Miami-Dade's effective transfer tax rate 50% higher than the rest of the state.
Example for Miami-Dade: On a $500,000 sale:
Florida customs around who pays closing costs are just that - customs. They can be negotiated between buyer and seller. However, the standard practice in most Florida counties is:
Seller typically pays:
Buyer typically pays:
An important note: in a cash sale to a company like OneCashOffer, there are no mortgage-related taxes because there is no mortgage. The only transfer tax is the documentary stamp tax on the deed, which the seller typically pays from proceeds.
Certain transfers are exempt from Florida documentary stamp tax:
Important: adding someone to your deed or removing someone from your deed can trigger documentary stamp tax if there is consideration involved. Consult a real estate attorney before making any deed changes.
The documentary stamp tax on the deed would be $2,800 ($7.00 per $1,000). In Miami-Dade County, the combined doc stamps and surtax would be $4,200 ($10.50 per $1,000). The seller typically pays this tax.
Yes. Florida charges a documentary stamp tax on deeds at $0.70 per $100 of the sale price (higher in Miami-Dade). There is also a documentary stamp tax and intangible tax on new mortgages, paid by the buyer.
Yes, this is negotiable. The standard Florida contract allows the parties to agree on who pays which closing costs. However, most Florida transactions follow the custom of the seller paying doc stamps on the deed.