Understanding Doc Stamp Taxes in Florida Real Estate
If you’ve bought or sold property in Florida, you’ve probably heard the term “doc stamps.” Short for documentary stamp tax, this is basically a tax the state charges when certain real estate documents are recorded—like deeds and mortgages.
On deeds: the rate is 70 cents for every $100 of the purchase price.
On mortgages: the rate is 35 cents for every $100 of the loan amount.
So, if you purchase a property for $1,000,000, the doc stamps on the deed would be $7,000.
Doc stamps are one of those hidden costs in a transaction that can add up, so it’s important to know when they apply.
When Do Doc Stamps Apply?
Doc stamps usually show up when a deed or mortgage is recorded, but there are other situations where they may be triggered.
Some Common Situations on if Doc Stamps are required or not:
1. Gifting property
If the property is free and clear of mortgages and you gift it, there are no doc stamps.
2. Transfers between spouses
If you’re simply transferring your homestead between spouses, there are no doc stamps If the only consideration is the mortgage balance.
3. Divorce transfers
If a home is transferred between spouses due to divorce, doc stamps are not charged.
4. Adding or removing someone from title
If there’s a mortgage, doc stamps are owed based on the percentage of ownership being added or removed. If there’s no mortgage or money involved, no tax is due.
5. Placing property into a trust or transferring property out of a trust
If you’re the sole beneficiary, there are no doc stamps—even if there’s a mortgage. If others benefit from the trust and there’s a mortgage or money involved, doc stamps kick in. If the property goes back to the sole beneficiary, no doc stamps. But if multiple beneficiaries are involved, doc stamps can apply depending on the ownership percentages and mortgage balance.
6. Transferring property to or from an LLC or corporation
If the property has a mortgage or money changes hands, doc stamps are due.
Why This Matters
Doc stamps aren’t usually the first thing buyers or sellers think about, but they can impact your bottom line. Since every situation is different, it’s always smart to check with a real estate attorney before transferring property outside of a standard purchase or sale. Doc stamps are Florida’s tax on recorded real estate transactions. They’re straightforward in a normal sale, but special transfers—like adding someone to title, moving property into a trust, or gifting—can get more complicated.
