calculate doc stamps florida

Understanding Florida Documentary Stamp Taxes

When you buy or sell real estate in Florida, or secure a loan with property, you'll encounter what are known as "documentary stamp taxes" (often shortened to "doc stamps") and, in some cases, an "intangible tax on mortgages." These are state-imposed taxes on certain documents related to real estate transactions, and they represent a significant closing cost for both buyers and sellers.

What Are Documentary Stamp Taxes?

Documentary stamp taxes are essentially excise taxes levied on documents and transactions that transfer an interest in Florida real property or evidence an obligation to pay money. They are collected by the Florida Department of Revenue and are a crucial part of the state's revenue stream.

• Doc Stamps on Deeds: These are imposed on documents that transfer ownership of real property, such as warranty deeds, quitclaim deeds, and master deeds.
• Doc Stamps on Mortgages/Liens: These are imposed on written obligations to pay money, such as promissory notes, bonds, and mortgages that encumber Florida real property.

Intangible Tax on Mortgages

Separate from documentary stamp taxes, Florida also levies an "intangible tax" on mortgages or other recorded liens on real property. This tax is specifically on the privilege of recording a mortgage or lien and is based on the face value of the obligation secured by the mortgage.

How Are These Taxes Calculated?

The calculation for each type of tax is straightforward but relies on specific rates and methods:

Documentary Stamp Tax on Deeds

This tax is levied on the "consideration" or sale price of the property. The rate is:

• $0.70 per $100 (or portion thereof) of the consideration.
• Exception: In Miami-Dade County, the rate is $0.60 per $100 on single-family residences, plus a surtax of $0.45 per $100, totaling $1.05 per $100. For all other properties, it's $0.60 per $100. Our calculator uses the general Florida rate of $0.70 per $100 for simplicity.

The "portion thereof" means that if the consideration is, for example, $100.01, you pay on $200. The amount is always rounded up to the next full $100 increment before applying the rate.

Documentary Stamp Tax on Mortgages/Promissory Notes

This tax applies to the amount of the mortgage or lien being recorded. The rate is:

• $0.35 per $100 (or portion thereof) of the mortgage principal.

Similar to deeds, the mortgage amount is rounded up to the nearest $100 increment before calculation.

Intangible Tax on Mortgages

This tax is also based on the mortgage principal and is calculated as:

• $0.002 per $1.00 (or 2 mills) of the mortgage principal.
• This tax is not subject to the "portion thereof" rule; it's a direct percentage of the mortgage amount.

Who Typically Pays These Taxes?

While the responsibility for paying these taxes can be negotiated between parties in a real estate contract, common practice dictates:

• Doc Stamps on Deeds: Traditionally paid by the seller.
• Doc Stamps on Mortgages: Traditionally paid by the buyer (as they are securing the loan).
• Intangible Tax on Mortgages: Traditionally paid by the buyer (as it's related to recording their mortgage).

It's crucial to review your purchase and sale agreement or consult with your real estate agent or attorney to confirm who is responsible for each tax in your specific transaction.

Important Considerations and Exemptions

• "Portion Thereof": Always remember that for documentary stamp taxes, the amount is rounded UP to the nearest $100 increment. For example, a $100,001 sale price is treated as $100,100 for doc stamp calculation.
• Exemptions: Certain transfers are exempt from documentary stamp taxes, such as deeds of distribution from an estate, deeds between spouses, or transfers to certain government entities. Mortgage refinancing where the borrower remains the same and no additional funds are advanced may also have partial exemptions.
• New vs. Assumed Mortgages: If a buyer assumes an existing mortgage, doc stamps and intangible tax are generally not due again on the assumed portion, only on any new money advanced or new mortgage created.
• Professional Advice: The information and calculator provided are for estimation purposes only. Real estate laws and tax regulations can be complex and change. Always consult with a qualified real estate attorney, title company, or tax professional for accurate figures and advice specific to your situation.

Conclusion

Documentary stamp taxes and intangible taxes are an integral part of real estate transactions in Florida. Understanding how they are calculated and who typically pays them is essential for budgeting and a smooth closing process. Use the calculator above as a helpful tool, but always confirm final figures with your closing professionals.