The Transfer Tax That Shows Up on Every Closing

Every time a piece of real estate changes hands in Florida, the state collects a tax on the transaction. It is called the documentary stamp tax, and agents, buyers, and sellers call it "doc stamps." It is not optional, it is not negotiable with the state, and it is one of the larger line items on the closing disclosure.

Here is how it works, who pays it, and how to calculate it for your clients.

Two Types of Doc Stamps

1. Doc Stamps on the Deed (Transfer Tax)

When a deed is recorded transferring ownership of real property, the state charges $0.70 per $100 of the sale price (consideration). This applies in every Florida county except Miami-Dade, which charges $0.60 per $100.

The seller typically pays this tax. It is deducted from the seller's proceeds at closing.

Example: $400,000 Sale in Manatee County

Sale price$400,000
Rate: $0.70 / $100x 0.007
Doc stamps on deed$2,800

2. Doc Stamps on the Note/Mortgage

When a borrower takes out a mortgage, doc stamps are also charged on the promissory note (the loan document). The rate is $0.35 per $100 of the loan amount.

The buyer pays this tax. It appears on the buyer's closing disclosure.

Example: $320,000 Mortgage (80% LTV on $400,000)

Loan amount$320,000
Rate: $0.35 / $100x 0.0035
Doc stamps on note$1,120

Intangible Tax (on New Mortgages)

In addition to doc stamps, Florida charges an intangible tax of $0.20 per $100 on new mortgages. This is sometimes confused with doc stamps because it appears on the same line of the closing disclosure, but it is a separate tax.

Example: $320,000 Mortgage

Loan amount$320,000
Rate: $0.20 / $100x 0.002
Intangible tax$640

Putting It All Together

On a $400,000 sale with an 80% mortgage, the total taxes look like this:

Total Transfer Taxes: $400,000 Sale, $320,000 Mortgage

Doc stamps on deed (seller pays)$2,800
Doc stamps on note (buyer pays)$1,120
Intangible tax on mortgage (buyer pays)$640
Total transfer taxes$4,560

When Doc Stamps Are Not Required

There are a few situations where documentary stamp tax is reduced or exempt:

  • Transfers between spouses: If the deed is between spouses as part of a divorce or estate plan, and no other consideration is exchanged, doc stamps may not apply.
  • Transfers to or from a government entity: Deeds to or from federal, state, or local government are exempt.
  • Corrective deeds: Deeds filed solely to correct an error in a prior deed (no change in ownership) are not subject to doc stamps.
  • Cash purchases: The buyer avoids doc stamps on the note and the intangible tax because there is no mortgage. The seller still pays doc stamps on the deed.

Why This Matters for Agents

Doc stamps and intangible tax are often the first line items a client questions on the net sheet or cost estimate. "$2,800 in transfer taxes? What is that for?" If you can explain it clearly, your client trusts the numbers. If you cannot, they start questioning everything on the statement.

Quick reference for your next listing appointment or buyer consultation:

  • Seller pays: Doc stamps on the deed ($0.70 per $100 of sale price)
  • Buyer pays: Doc stamps on the note ($0.35 per $100 of loan) + intangible tax ($0.20 per $100 of loan)
  • Quick math for sellers: Sale price x 0.007
  • Quick math for buyers: Loan amount x 0.0055 (combined doc stamps + intangible)

Barnes Walker's closing cost calculator handles these calculations automatically. If you need a detailed net sheet or buyer estimate for a specific deal, call us at 941-778-7721. Same-day turnaround, no charge.

Disclaimer: This information is for general educational purposes and should not be construed as legal or tax advice. Documentary stamp tax rates are set by Florida statute and are subject to legislative change. Contact Barnes Walker for guidance specific to your transaction.