Florida Closing Costs Explained: How to Calculate Documentary Stamps & Intangible Tax
What Realtors and Homebuyers Need to Know About Florida Doc Stamps and Intangible Tax
How do homebuyers calculate Florida Intangible Tax and Documentary Stamps? Here’s what buyers and Realtors need to know about these important Florida closing costs.
Buying a home in Florida—whether using USDA, VA, FHA, or Conventional financing—means preparing for more than just inspections and closing dates. Two of the most frequently overlooked closing costs are Documentary Stamp Tax and Intangible Tax.
Do You Know Why These Florida Taxes Matter at Closing?
Realtors are often the first to answer questions about closing costs. Knowing how Documentary Stamps and the Intangible Tax work helps you set clear expectations with buyers and avoid last-minute contract issues.
In today’s short video, I walk through how each tax is calculated so you can be prepared before closing!
If you want more information about Florida USDA Loans, be sure to download our FREE USDA Blueprint for Success. This educational resource is designed for homebuyers and realtors alike.
What are Florida Documentary Stamp Tax
The State of Florida assesses taxes on both the transfer of real property and mortgages. This means homebuyers must be prepared to pay additional state taxes when purchasing a home.
A portion of these taxes come from Florida’s documentary stamp tax. According to the Florida Department of Revenue:
“Documentary stamp tax is an excise tax imposed on certain documents executed, delivered, or recorded in Florida. The most common examples are:
- Documents that transfer an interest in Florida real property, such as deeds; and
- Mortgages and written obligations to pay money, such as promissory notes.
Tax is paid to the Clerk of Court when the document is recorded. When a taxable document is not recorded, the tax must be paid directly to the Florida Department of Revenue.” (Section 201, Florida Statutes)
Deeds and Other Documents that Transfer an Interest in Florida Real Property
“Deeds and other documents that transfer an interest in Florida real property are subject to documentary stamp tax. Regardless of where the deed or other document is signed and delivered, documentary stamp tax is due. The amount of tax due is computed based on the consideration for the transfer. All parties to the document are liable for the tax regardless of which party agrees to pay the tax. If a party is exempt, the tax must be paid by a non-exempt party.” (Reference: Section 201.02(1)(a), Florida Statutes)
In simple terms, Florida taxes are administered to cover the variety of recorded documentation needed when purchasing a home.
How Documentary Stamps Are Calculated
1. Documentary Stamps on the Deed (Transfer Tax)
This tax is calculated based on the purchase price of the property.
- Most Florida counties:
- $0.70 per $100 (or fraction thereof)
- Miami-Dade County
- $0.60 per $100 for all property types
- Extra surtax of $0.45 per $100, unless the home is a single-family residence
Florida requires rounding up to the next $100 increment.
Section 201.02(1)(a) of the Florida Statutes states the following:
“On deeds, instruments, or writings whereby any lands, tenements, or other real property, or any interest therein, shall be granted, assigned, transferred, or otherwise conveyed to, or vested in, the purchaser or any other person by his or her direction, on each $100 of the consideration therefor the tax shall be 70 cents.”
2. Documentary Stamps on the Mortgage (Promissory Note)
A promissory note outlines the amount owed, interest rate, and repayment terms. This tax applies to the loan amount, not the sale price.
- Rate: $0.35 per $100 (or fraction thereof)
- Rounded up to the next $100
Florida Statue § 201.08 states::
“On promissory notes, nonnegotiable notes, written obligations to pay money, or assignments of salaries, wages, or other compensation made, executed, delivered, sold, transferred, or assigned in the state, and for each renewal of the same, the tax shall be 35 cents on each $100 or fraction thereof of the indebtedness or obligation evidenced thereby. The tax on any document described in this paragraph 1may not exceed $2,450.”
Florida Intangible Tax
Lastly, there is a one-time nonrecurring tax commonly referred to as the Florida Intangible Tax.
Florida’s one-time nonrecurring Intangible Tax applies only to mortgages and is based on the exact loan amount (no rounding).
- Rate: 0.20%
- Formula: Loan Amount × 0.002
For Home Equity Lines of Credit (HELOCs), the tax is based on the full line of credit, not the initial draw.
Calculating the Florida Intangible Tax
Florida Intangible Tax is calculated at 2 mills per each dollar of the just value of the note ($.002) secured by the mortgage. (§199.133, Fla. Stat.)
Please note that intangible tax on a home equity line of credit will be calculated on the full line amount, not just the amount advanced at closing.
Example: How These Florida Taxes Add Up
If you are overwhelmed, don’t worry. Here’s an example to make the calculations clear:
Brenda, the buyer and Steve, the seller, have agreed to the purchase and sale of a property located in Highlands County for $125,000. After Steve’s down payment of $25,000, she obtained a promissory note for $100,000 secured by a mortgage.
Purchase Price: $125,000
Loan Amount: $100,000
| Cost Type | Rate | Calculation | Amount |
|---|---|---|---|
| Deed Doc Stamps | $0.70 per $100 | $125,000 ÷ 100 × $0.70 | $875.00 |
| Mortgage Doc Stamps | $0.35 per $100 | $100,000 ÷ 100 × $0.35 | $350.00 |
| Intangible Tax | 0.20% | $100,000 × 0.002 | $200.00 |
| Total Estimated Taxes | — | — | $1,425.00 |
These totals amount to $1,425! As you can see, these costs add up quickly. Remember that your contract determines whether the buyer, seller, or both parties pay these costs, but buyers should plan ahead!
Why These Fees Matter to Homebuyers and Realtors
They directly impact cash to close- Rounding rules can increase costs more than expected
- Early preparation prevents delays, renegotiations, or missed closing dates
This is why working with an experienced lender who estimates these costs early is critical!
Work With Florida’s #1 Ranked USDA Lender
Metroplex Mortgage Services is officially recognized by USDA Rural Development as the:
#1 Ranked USDA Lender in Florida
2017 • 2023 • 2024 • 2025
As a USDA-approved lender we work directly with you to calculate closing costs accurately from the start, helping protect homebuyers and Realtors with on-time closings and proven results.
Have questions about closing costs or want to take advantage of a free second opinion? We’re here to help.
Just call or email to discuss your scenario and let us show you the “Metroplex” difference!
📞 Call/Text: 863-593-2001
🏢 Office: 800-806-9836 Ext. 280
📧 Email: SeanS@MPLX.org
Also, find out more about Florida USDA Loans by downloading our USDA Blueprint for Success with the link below:
