What Florida Documentary Stamp Tax Actually Is
A $12 million Palm Beach closing statement has a line most buyers and sellers skim past, and it can run into six figures. Documentary stamp tax is a state excise tax charged on the paper that moves property: the deed that transfers title, and the note and mortgage that secure a loan. It is not a property tax, and it is not an income tax. It is a transaction tax, due once, at the moment the document is recorded.
Florida sets the base rate on deeds at 70 cents for each $100 of consideration, or portion thereof. That “portion thereof” language matters: the amount is rounded up to the next $100 before the rate is applied. The Florida Department of Revenue documentary stamp tax page lays out the rates by document type, and it is the first place a serious seller or buyer should confirm the numbers before a contract is signed.
On a luxury sale, the tax scales in a straight line with price. There is no cap on deed stamps and no discount for large transactions. A $3 million sale and a $30 million sale are taxed at the same rate, so the dollar amount at the larger end is substantial enough to shape negotiation, pricing strategy, and the structure of the deal itself.
Sellers often meet this number late, when a title company sends a preliminary closing statement. Buyers meet it in the budget for the mortgage. Either way, the earlier the figure is on the table, the more options exist to manage it. The rest of this guide walks through the rates, the Miami-Dade exception, who customarily pays, and the situations that catch owners off guard.
Deed Stamps: The Rate, the Math, and the Miami-Dade Exception
Outside Miami-Dade County, the deed rate is $0.70 per $100. Run the numbers on a few price points and the effect is easy to see:
- $2,000,000 sale: $14,000 in deed stamps
- $5,000,000 sale: $35,000
- $10,000,000 sale: $70,000
- $25,000,000 sale: $175,000
Miami-Dade works differently, and the difference is worth real money. The county charges $0.60 per $100 on deeds, so a single-family home in Coral Gables, Pinecrest, or Key Biscayne is taxed at that lower rate. Every other type of property in the county, which includes condominium units, vacant land, and commercial buildings, pays the $0.60 rate plus a $0.45 per $100 surtax, for a combined $1.05 per $100.
The same $10 million price tag therefore produces three different bills. A Broward or Palm Beach County estate costs $70,000 in deed stamps. A Miami-Dade single-family estate costs $60,000. A Miami-Dade penthouse or office building costs $105,000. A buyer comparing a Brickell condo with a Fort Lauderdale condo should know the seller’s net proceeds already differ by tens of thousands of dollars before anyone negotiates a thing.
Why the property type definition matters
The single-family classification drives the Miami-Dade rate, so the legal description and the use of the property matter. A condo-hotel unit, a townhome held in a condominium regime, or a parcel with multiple dwellings may not qualify as a single-family dwelling. If your property sits near that line, ask the closing attorney to confirm the classification in writing well before the closing date, not at the table.
Sellers pricing a Miami-Dade listing should also remember that the surtax raises the cost of every dollar of price on non-single-family property. A $500,000 price reduction on a Miami-Dade condominium saves the seller $5,250 in deed stamps on top of the lost proceeds, which softens the real cost of that reduction slightly. It never makes a reduction free, but it belongs in the math.
Who Pays: Contract Defaults and Negotiated Splits
The state holds every party to a document liable for its tax, whichever side agrees to pay. In practice, Florida custom assigns the cost by document. The seller pays the deed stamps. The buyer pays the stamps on the note and mortgage, along with the nonrecurring intangible tax on the mortgage. The standard Florida contract forms follow that allocation unless the parties change it.
Custom is a starting point, not a rule. In a slower market, a seller may offer to cover a buyer’s costs to close a deal. In a tight market for a trophy waterfront property, the buyer may agree to pay part of the seller’s deed stamps to win a competitive bid. Because the seller’s number is the largest single closing cost on a high-end sale, it deserves a line in the negotiation, not an assumption.
At MJI Realty Group, we put the full stamp calculation in front of both sides before an offer goes in. A seller deciding between a $9.8 million and a $10.2 million price needs to see how deed stamps change the net, and a buyer using a large loan needs the mortgage-side costs in the same picture. Surprises at closing are expensive and avoidable.
One practical point: if the contract is silent, the default allocation applies, and a default is a poor substitute for a decision. Name the payer of each tax in the offer, and have the closing attorney confirm the dollar figures on a draft settlement statement at least a week before closing.
Mortgage and Note Stamps, and the Intangible Tax
Financed buyers face a second set of taxes. Florida charges $0.35 per $100 on promissory notes and on mortgages that secure them. On a recorded mortgage, the tax applies to the full secured amount with no ceiling, so a large jumbo loan carries a large stamp bill. Separately, the state levies a nonrecurring intangible tax on the mortgage at two mills, which is $0.20 per $100, or 0.2 percent of the loan.
A quick example shows the combined effect. On a $4,000,000 mortgage, the stamps come to $14,000 and the intangible tax to $8,000, for $22,000 in state taxes on the financing alone. Add the deed stamps the seller pays, and total state transaction taxes on a financed $6 million purchase can exceed $50,000 before a lender, title insurer, or attorney charges a fee.
How cash buyers avoid the mortgage-side tax
All-cash buyers record no mortgage, so neither the mortgage stamps nor the intangible tax applies. That is one reason cash offers on luxury property carry a slight edge in total cost, beyond the speed and certainty sellers value. Buyers who close in cash and then take out a loan later should plan for these taxes at the time of the new mortgage, since recording a mortgage after the purchase triggers the same charges.
Refinancing triggers them too. A borrower who refinances a $3 million loan into a new $3 million loan generally pays stamps and intangible tax on the new instrument. Anyone modeling a refinance on a Florida estate should include them in the break-even calculation, along with the lender’s own fees and the title work on the new policy.
Entity Transfers, Mortgages, and Estate Planning Traps
Many luxury properties in Florida are held in LLCs, trusts, or land trusts for privacy and liability reasons. Moving a property into or out of an entity is a common planning step, and it is also a common source of unexpected stamp tax.
The central issue is the mortgage. When a deed conveys property that is encumbered by a mortgage, Florida can treat the outstanding mortgage balance as consideration for the deed, even when no cash changes hands. A transfer of an encumbered home from an owner to the owner’s own LLC may therefore produce a deed stamp bill measured by the loan balance. Transfers with no mortgage generally carry only the minimum charge, but the details turn on the facts.
- Confirm whether any mortgage or lien encumbers the property before any deed is signed.
- Ask your closing attorney how the transfer should be documented and whether an exemption applies.
- Check the loan agreement; many lenders treat a transfer to a new entity as a default trigger.
- Coordinate with your estate attorney and CPA so one deed does not undo another part of the plan.
Buyers who want privacy at purchase should read our guide to Florida land trusts and LLCs. The stamp tax consequence of the structure is the part people forget until the closing statement shows up.
Families settling an estate face a similar question when a home passes to heirs and one heir buys out the others. The buyout deed can carry consideration, and the tax follows it. Raise it with the probate attorney early so the buyout price and the stamp bill are known together.
Commercial and Investment Property: Where the Surtax Hurts
Investors feel the Miami-Dade surtax most. A $20 million office building, retail center, or warehouse in Miami-Dade pays $1.05 per $100 on the deed, which is $210,000, compared with $140,000 for the same price in Broward or Palm Beach County. That $70,000 spread is a legitimate input into an acquisition model, and it changes the effective yield on a deal with a thin margin.
Exchange buyers are not exempt. A 1031 exchange defers federal capital gains tax on qualifying property, but each deed in the exchange is still a recorded conveyance with its own stamps. Investors planning an exchange should budget for the stamp tax on the relinquished property and on any loan taken on the replacement property. The Internal Revenue Service explains how capital gains and losses are treated for federal tax purposes, and that federal treatment is separate from the state transaction tax discussed here.
Developers and multifamily operators should also watch for portfolio deals. A portfolio sale priced as a single package still allocates consideration to each parcel’s deed, and the county of each parcel sets the applicable rate. A package that mixes Miami-Dade and Broward assets requires a clear allocation schedule agreed in advance, because the same dollar of price carries a different rate depending on where the parcel sits.
Investors comparing markets should treat the surtax as a fixed entry cost. On a five-year hold, an extra $70,000 at purchase on a $20 million asset is a small drag on returns, but on a 12-month value-add flip it is a material share of the expected profit. Match the hold period to the transaction cost, and let the numbers decide the county.
Six Ways to Plan for the Tax Before You List or Offer
Stamp tax is not avoidable by clever drafting, and attempts to understate consideration create legal risk. It is plannable, though. These steps keep the number from surprising anyone:
- Calculate it at the listing stage. Know the seller’s net at three price points before choosing a list price.
- Confirm the county and property type. In Miami-Dade, single-family versus other property is a $0.45 per $100 difference.
- Decide who pays in the contract. Write the allocation, including any buyer credit, into the offer.
- Account for personal property. Furnishings sold under a separate bill of sale are not deed consideration, but the allocation must be genuine and supportable. Get advice from your attorney and CPA.
- Model the mortgage side. Include note stamps and intangible tax in any financing comparison.
- Separate state tax from federal tax. The IRS covers the federal rules for the sale of your home, including how the exclusion works for a primary residence.
The National Association of REALTORS® publishes market research at nar.realtor that helps buyers and sellers put closing costs in context against price trends, but only your own closing statement shows your true number.
Finally, ask for the figures in writing. A good closing attorney or title agent will produce a draft settlement statement early, and comparing it with your own estimate catches errors, such as a wrong county rate or a misclassified property, while there is still time to fix them.
Putting It Together With a Boutique Brokerage
Documentary stamp tax rewards preparation. A seller who sees the number in week one prices accurately and negotiates with confidence. A buyer who knows the mortgage-side taxes builds an honest budget and avoids a scramble for cash at closing. An investor who models the Miami-Dade surtax picks the right submarket for the next acquisition.
If you are considering selling or buying a luxury residence or commercial property in Miami-Dade, Broward, or Palm Beach County, MJI Realty Group works with clients who value discretion and speed, and we can walk through the tax math on your specific deal before you commit. Call or text (561) 859-5631.
Real estate decisions depend on individual circumstances; this is general information, not legal, tax, or investment advice for your specific situation. Rates and rules change, so confirm current figures with a Florida real estate attorney or CPA and with the Department of Revenue before you rely on them.
