Florida Documentary Stamp Tax

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), F.S.

In all Florida counties except Miami-Dade, the tax rate imposed on documents subject to tax is 70 cents on each $100 or portion thereof of the total consideration.

Reference: Section 201.02(1)(a), F.S.

The tax rate for Miami-Dade County is 60 cents on each $100, or portion thereof, of the total consideration. Miami-Dade County also has a surtax of 45 cents on each $100, or portion thereof, of the total consideration. The surtax is not due on a document that transfers only a single-family dwelling.

Reference: Section 201.031, F.S.

Florida law gives some examples of consideration. Consideration includes, but is not limited to:

• money paid or agreed to be paid;
• the discharge of an obligation;
• the exchange of property (real or personal); and
• the mortgage, lien, or other encumbrance on the property, whether assumed or not.

If the property being transferred has a mortgage on it, the balance of the mortgage at the time of transfer is consideration for the transfer. Also, if property is transferred in lieu of foreclosure, the discharged indebtedness is consideration for the transfer.

Reference: Section 201.02(1)(a), F.S.

Questions That May Help Determine Consideration

• Was money paid for the property interest transferred?
• Is money to be paid for the property interest transferred?
• Was there an exchange of real or personal property for the property interest transferred?
• Was the property encumbered by a mortgage or other lien at the time of the transfer?
• Will the grantor or someone designated by the grantor receive anything of value for the property interest transferred?
• Will the grantee, or someone acting on behalf of the grantee, give anything of value for the property interest transferred?
• Was the property interest transferred in lieu of a debt payment, or did the grantee forgive a debt because of the property interest received?

• Deeds (e.g., warranty, special warranty, quit claim, trustee's deed, life estate deed)
• A document that transfers property between spouses (certain exemptions may apply — see the next section, Examples of Documents Generally Not Subject to Tax)
• Agreement/contract for deed
• A document that transfers a mobile home as real property
• An assignment of a leasehold interest in real property
• Certificate of title
• A document that transfers a cemetery lot or interment rights
• A deed in lieu of foreclosure
• A document that transfers an easement
• A document that transfers timber, oil, gas, or mineral rights

See Rule 12B-4.013, Florida Administrative Code, for additional documents subject to tax.

• A document that transfers real property from an agent to the principal, when the agent purchased the property for the principal with the principal's funds.
• Marriage deeds — No tax is due on a deed between spouses when:
  

  • The real property being transferred is homestead property, and
  • The only consideration for the transfer is the amount of a mortgage or other lien encumbering the homestead property.

  Reference: Section 201.02(7), F.S.
• Divorce deeds — No tax is due on a deed between spouses or former spouses pursuant to a dissolution of marriage when the real property is transferred following the divorce and the property was their marital home or an interest therein at the time of divorce. Taxpayers may seek a refund of tax paid on a deed within one year of the dissolution of their marriage. When the property is not the marital home, tax is due based on the consideration, which would include any mortgages on the property.
  
  Reference: Section 201.02(7), F.S.
• A document that transfers property under a threat of eminent domain or condemnation.
• A personal representative's deed given pursuant to a duly probated will.

Note: There is no specific exemption for documents that transfer Florida real property for estate planning purposes.

See Rule 12B-4.014, Florida Administrative Code, for additional documents exempt from tax.

1. Linda purchases property located in Escambia County from Susan. Linda gives Susan $30,000 as a down payment, and Susan takes back a note and mortgage from Linda in the amount of $150,000. Since there is no other consideration for the transfer, the tax is calculated on $180,000 (the $30,000 paid and the $150,000 to be paid).

   Tax calculation: 1,800 (number of taxable units representing each $100, or portion thereof, of the consideration of $180,000) x $0.70 = $1,260 tax due.

2. In lieu of foreclosure, John transfers his home, a single-family residence located in Miami-Dade County, to the bank that holds the mortgage on the property. The balance of the mortgage plus accrued interest at the time of the transfer is $225,132.75. The consideration for the transfer is $225,132.75 (the amount of the debt forgiven).

   Tax calculation: 2,252 (number of taxable units representing each $100, or portion thereof, of the consideration of $225,132.75) x $0.60 = $1,351.20 tax due (no surtax is due since the property is a single-family dwelling). This is true even if the fair market value of the property is less.

3. Bob exchanges his unimproved real property located in Sarasota County with Carrie for a recreational vehicle. The fair market value of Bob’s property is $40,675. The consideration for the transfer is $40,675. Since property was exchanged for consideration other than money, it is presumed that the consideration for the transfer is the fair market value of the property.

   Tax calculation: 407 (number of taxable units representing each $100, or portion thereof, of the consideration of $40,675) x $0.70 = $284.90 tax due.

4. A wife deeds her homestead Florida real property to herself and her husband. The property is encumbered by a mortgage, and there is no other consideration for the property interest transferred.

   Tax calculation: No tax is due. Section 201.02(7)(b), F.S., exempts documents of transfer between spouses of homestead property when the only consideration is a mortgage. Homestead is defined in section 192.001, F.S.

5. A husband and wife transfer their jointly owned Duval County property to a trust organized under chapter 689, F.S. The wife is the sole current beneficiary under the trust. The property is encumbered by a mortgage of $100,000, and there is no other consideration for the transfer. The consideration for the transfer is $50,000 (the amount of the mortgage multiplied by the percentage of the interest transferred).

   Tax calculation: 500 (number of taxable units representing the interest transferred for consideration) x $0.70 = $350 tax due.

6. John transfers an interest of his unencumbered real property in Monroe County with a fair market value of $400,000 to his new spouse. There is no mortgage on the property at the time of transfer, and there is no other consideration.

   Tax calculation: If the deed reflects nominal consideration, such as "love and affection and $1" or "$10 or other good and valuable consideration," then $0.70 tax is due.

7. Jane transfers an interest in her unencumbered real property in Broward County with a fair market value of $1 million to her children. There is no mortgage on the property at the time of transfer, and there is no other consideration.

   Tax calculation: If the deed reflects nominal consideration, such as "love and affection and $1" or "$10 or other good and valuable consideration," then $0.70 tax is due.

8. ABC LLC purchased property in Duval County for $2.5 million. Since there is no other consideration for the transfer, the tax is calculated on $2.5 million.

   Tax calculation: 25,000 (number of taxable units representing each $100, or portion thereof, of the consideration of $2.5 million) x $0.70 = $17,500 tax due.

9. CCC Corporation, which owns Alachua County property with a fair market value of $5 million, transfers the property to its subsidiary, AAA Corporation. At the time of transfer, the property is encumbered by a mortgage in the amount of $3 million, and the property secures a line of credit with an outstanding balance of $700,000. Since there is no other consideration for the transfer, the tax is calculated on $3.7 million (the $3 million mortgage plus the line of credit balance of $700,000).

   Tax calculation: 37,000 (number of taxable units representing each $100, or portion thereof, of the consideration of $3.7 million) x $0.70 = $25,900 tax due.

10. XYZ Corporation transfers unencumbered Orange County property, with a fair market value of $625,500 to its parent company, ABC Corporation. ABC Corporation owns 100% of XYZ Corporation. There is no mortgage and no other consideration for the transfer.

    Tax calculation: If the deed reflects nominal consideration, such as "$10 or other good and valuable consideration," then $0.70 tax is due.

11. John purchases a vacant lot in Miami-Dade County for $500,000. In addition to the $0.60 per $100 documentary stamp tax, Miami-Dade County imposes a $0.45 per $100 discretionary surtax. Since there is no other consideration for the transfer, the tax is calculated on $500,000.

    Tax calculation: 5,000 (number of taxable units representing each $100, or portion thereof, of the consideration of $500,000) x $0.60 = $3,000 documentary stamp tax due, and 5,000 (number of taxable units representing each $100, or portion thereof, of the consideration of $500,000) x $0.45 = $2,250 discretionary surtax due. The total tax due is $5,250. There is no exemption from the surtax since the deed does not transfer a single-family residence.

12. Sherry purchases a reserved boat slip in her Bay County condo association's marina for $5,000. Since there is no other consideration for the transfer, the tax is calculated on $5,000.

    Tax calculation: 50 (number of taxable units representing each $100, or portion thereof, of the consideration of $5,000) x $0.70 = $35 tax due.

Promissory notes and other written obligations to pay money, including each renewal of a promissory note and other written obligations to pay money (except those exempt under section 201.09(1), F.S.), that are signed or delivered in Florida are subject to documentary stamp tax. Tax is due on the full amount of the obligation evidenced by the taxable document at the rate of 35 cents per $100, or portion thereof. However, the tax due on a note or other written obligation to pay money is capped at $2,450.

Examples of modifications to documents that are generally not taxable renewals include those given or recorded to:

• Correct errors;
• Modify covenants, conditions, or terms unrelated to the debt;
• Sever a lien into separate liens;
• Provide additional or substitute security for the indebtedness;
• Consolidate indebtedness or collateral;
• Add, change, or delete guarantors;
• Substitute a new mortgagee or payee; or
• Change only the interest rate, made as the result of the discontinuation of an index to which the original interest rate is referenced.

Mortgages, liens, security agreements, and other evidences of indebtedness are subject to tax and payable when filed and recorded in Florida. The tax is based on the full amount of the indebtedness secured by the mortgage or lien, regardless of whether the indebtedness is contingent or absolute. The rate of tax is 35 cents per $100, or portion thereof, of the amount secured thereby. There is no cap on the amount of tax due.

All parties to the document are liable for the tax, regardless of who agrees to pay the tax. If one party is exempt, the tax must be paid by a non-exempt party.

Reference: Section 201.08, F.S.

• Demand notes
• Term notes
• Retail installment sale contracts
• Certain renewal notes
• Title loans

• Mortgages
• Assumptions of mortgages
• Mortgages securing guaranties
• Mortgages securing a bail bond
• Mortgages securing a letter of credit
• Mortgage securing lines of credit
• Agreements or contracts for deed
• Collateral assignments of a lease

Note: The filing of the State of Florida Uniform Commercial Code Financing Statement (Form UCC-1) in its original form is not taxable. However, a notation must be placed on the UCC-1 indicating whether or not tax was properly paid on any obligation that caused the need for the UCC-1.

For unrecorded documents, businesses or individuals that average five or more taxable transactions per month must register to report and pay documentary stamp tax. You can register using the online registration system or submit a paper Florida Business Tax Application (Form DR-1 ).

If you hold an active certificate of registration or reemployment tax account issued by the Department of Revenue because you previously submitted a Florida Business Tax Application (Form DR-1), use the Application for Registered Businesses to Add a New Florida Location (Form DR-1A ) to register:

• An additional business location or Florida rental property, or
• A registered location that has moved from one Florida county to another.

For more information on submitting an application, see Registering Your Business (Form DR-1N ).

When to Notify the Department

You must notify the Department if you:

• Change your business name;
• Change your mailing address;
• Change your location address within the same county; or
• Close or sell your business.

The quickest way to notify the Department of these changes is to update your account online.

When to Submit a New Tax Application

You must submit a new registration using the online registration system or complete a paper Florida Business Tax Application (Form DR-1 ) if you:

• Change your legal entity; or
• Change the ownership of your business.

Mortgages and other liens are taxable at the time of recordation. Deeds are taxable whether recorded or not. If a deed is not recorded by the 20th day following the month of delivery, the tax must be remitted to the Department as an unrecorded document. If the deed is recorded by the 20th day of the month following the deed's delivery, the tax is remitted at the time of recordation.

For Recorded Documents

Documentary stamp tax is generally paid to the county at the time of recordation.

For Unrecorded Documents

Registered taxpayers report and pay documentary stamp tax to the Department using a Documentary Stamp Tax Return for Registered Taxpayers' Unrecorded Documents (Form DR-225 ). Registered taxpayers can file and pay documentary stamp tax electronically using the Department's free and secure eFile and Pay webpage. (Taxpayers who average five or more taxable transactions per month must register.)

Nonregistered taxpayers report and pay documentary stamp tax using a Documentary Stamp Tax Return for Nonregistered Taxpayers' Unrecorded Documents (Form DR-228 ). Nonregistered taxpayers can file and pay documentary stamp tax electronically using the Department's free and secure eFile and Pay webpage.

For both registered and nonregistered taxpayers, returns and payments are due on the 20th day of the month following each reporting period. If the 20th falls on a Saturday, Sunday, or state or federal holiday, returns are timely if filed electronically, postmarked, or hand-delivered to the Department on the first business day following the 20th. Registered taxpayers must file a return for each reporting period, even if no tax is due.

Taxpayers who paid $5,000 or more in documentary stamp tax during the most recent state fiscal year (July 1 — June 30) are required to file and pay electronically during the next calendar year.

Whether you electronically pay only or you electronically file and pay at the same time, you must initiate your electronic payment and receive a confirmation number no later than 5 p.m. ET on the business day prior to the 20th to avoid penalty and interest. For a list of the electronic payment deadlines, visit the Department's Forms and Publications webpage and select the current year's Florida eServices Calendar of Electronic Payment Deadlines (Form DR-659) under the eServices section.

If you file your return or pay tax late, a penalty of 10% of any unpaid tax for each 30 days, or fraction thereof, not to exceed a total penalty of 50% of unpaid tax, is charged. The minimum penalty is $10, even if no tax is due. A floating rate of interest applies to underpayments and late payments of tax. Interest rates can be found on the Department's Tax and Interest Rates webpage.