Documentary Stamp Tax (Transfer Tax)
Last updated: July 25, 2023
The documentary stamp tax (“doc stamps”) is an excise tax imposed on certain documents executed, delivered, or recorded in Florida which transfer an interest in Florida real property. There are many exceptions to the application of this tax but you should verify whether or not it applies to your deed. The tax is levied at 70 cents for each $100 of consideration for most recorded documents (i.e., deeds). For purposes of determining whether doc stamps are owed, consideration is defined as: money paid or agreed to be paid, the discharge of an obligation, and the amount of any mortgage, purchase money mortgage lien, or other encumbrance, whether or not the underlying indebtedness is assumed.
It is important to note, that if the transfer involves multiple forms of consideration (a mortgage AND there is consideration paid) the amount taxed will be the sum of both. There are several exceptions to the required payment of doc stamps, however, the laws are complex and failure to pay or payment of incorrect tax carries stiff penalties.
If you have any questions about doc stamps ans whether they apply to your deed, you can contact us: