Documentary stamp taxes in real estate sales in Florida

TAX STAMPS EXPLAINED

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Buying and selling property in Florida is a taxable event.


When property is sold in Florida documentary stamp taxes become due. 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.



Florida documentary stamps explained:


In a cash purchase where no financing is involved,  the documentary stamp tax will be calculated based upon the sales price of the property itself. The rate is $0.70 per $100 of value (all counties excluding Miami-Dade). While everything is negotiable, the seller customarily pays this tax.

If the buyer has financing there will be additional taxes, paid for by the buyer.

Mortgages, liens, security agreements, and other evidences of indebtedness are subject to tax at $0.35 per $100.00 of indebtedness. There is an additional intangible tax on promissory notes and written obligations to pay money (mortgages, etc.) at $0.002 x total.


EXAMPLE:

John buys Mary’s Jacksonville condo for $200,000. He puts down 10%, financing $180,000.

Mary pays deed documentary stamps of $1,400 (calculated on the $200,000 sales price of the home)

John pays $630 in mortgage documentary stamps, and $360 intangible taxes (calculated from the loan amount of $180,000)

Total documentary stamp taxes paid on the transaction: $2,390.

To read more about Florida property taxes visit the Florida Department of Revenue.

Minna Reid

Minna Reid is a Broker Associate at Killebrew & Company Realty Inc, serving Jacksonville, Florida.

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