Documentary Stamps and Closing Costs on the Florida Exam: Every Rate and Calculation (2026)
Why Closing Cost Questions Punish Students Who Memorize the Rates Without Understanding Which Rate Applies to Which Document
Documentary stamps, intangible tax, and closing cost calculations carry a combined 9% of the Sales Associate Exam. That is roughly 9 questions spread across two content areas: Computations and Closing (6%) and Taxes (3%). The math overlap is heavy. These calculations connect directly to the proration and commission formulas covered in the math formulas guide, and students who struggle with one set of calculations tend to struggle with the others.
The gap is not memorizing the rates. Most students can recite the numbers. The gap is applying the correct rate to the correct document in the correct county with the correct rounding. What is the documentary stamp rate on a deed in Broward County? $0.70 per $100 of the sale price, and you must round the sale price up to the nearest $100 before multiplying. What about a single-family home in Miami-Dade County? $0.60 per $100, the only county exception in the entire state. What rate applies to a mortgage note? $0.35 per $100 of the loan amount, exactly half the deed rate, and students who use $0.70 on notes double the correct answer. Who pays the deed stamps? The seller. Who pays the mortgage stamps and intangible tax? The buyer. What is the intangible tax rate? 2 mills per dollar ($0.002), applied to the new loan amount, not the sale price. Add the Florida-specific rules that national prep courses skip, the Miami-Dade surtax of $0.45 on non-single-family properties, HB 7031 eliminating the business rent tax, and FinCEN BOI reporting requirements for entity transfers, and you start to see where the 52 to 56% first-time pass rate comes from.
This guide covers every documentary stamp rate, intangible tax rule, rounding requirement, and closing cost calculation the exam tests. Work through all 10 calculation examples for mastery and use the reference table and practice scenarios for review.
The short version: Doc stamps on deeds: $0.70 per $100 of sale price (round up to nearest $100 before multiplying). Doc stamps on notes: $0.35 per $100 of loan amount (round up). Miami-Dade exception: $0.60 per $100 for single-family deeds, $1.05 per $100 for non-single-family ($0.60 base + $0.45 surtax). Intangible tax on new mortgages: 2 mills ($0.002 per dollar of loan amount, no rounding required). Seller pays deed stamps. Buyer pays note stamps and intangible tax. Always round up to the nearest $100 before applying doc stamp rates. Intangible tax applies only to new mortgages, not assumptions.
Exam Weight: ~9% combined (Computations & Closing 6% + Taxes 3%) | Difficulty: Medium-High | Math: Heavy (doc stamps, intangible tax, proration, rounding)
What This Guide Covers
- Documentary Stamps on Deeds
- Documentary Stamps on Notes and Mortgages
- The Miami-Dade Exception
- Intangible Tax on New Mortgages
- Who Pays What at Closing
- The Rounding Rule That Changes Every Answer
- 10 Worked Calculation Examples
- Recording Fees and Other Closing Costs
- The 5 Closing Cost Traps That Generate Wrong Answers
- 2025-2026 Updates: HB 7031 and FinCEN
- The 4 Closing Cost Distinctions That Cost the Most Points
- Closing Cost Quick Reference Table
- 5 Closing Cost Exam Scenarios
- Frequently Asked Questions
Documentary Stamps on Deeds
Documentary stamps on deeds are calculated at $0.70 per $100 of the sale price in every Florida county except Miami-Dade, the seller pays them, and the exam tests whether you apply this rate to the deed or mistakenly use it on the note. Documentary stamp tax on deeds is governed by F.S. 201.02 and applies to every deed that transfers an interest in real property. The tax is based on the total consideration (sale price) stated in the deed.
The Rate and the Formula
| Component | Detail |
|---|---|
| Rate | $0.70 per $100 of sale price |
| Applied to | Total consideration (sale price) |
| Rounding | Round sale price UP to nearest $100 before multiplying |
| Who pays | Seller |
| Applies in | All 66 Florida counties (except Miami-Dade, which has its own rates) |
| Statute | F.S. 201.02 |
The formula: Sale Price (rounded up to nearest $100) / $100 x $0.70 = Documentary Stamps on the Deed
An alternative way to express the same formula: Sale Price (rounded up) x 0.007 = Documentary Stamps on the Deed
Both produce the same result. The first version matches how the Florida Department of Revenue describes the calculation. The second is faster for exam math.
When Documentary Stamps Apply to Deeds
Documentary stamps apply to all deeds transferring real property in Florida, not only deeds in standard sale transactions. Warranty deeds, special warranty deeds, quitclaim deeds, and personal representative deeds all trigger the tax when consideration is involved. The key principle is that documentary stamp tax attaches to the transfer document whenever consideration changes hands, regardless of the deed type used.
Exemptions From Documentary Stamps on Deeds
Certain transfers are exempt from documentary stamps on deeds. Deeds between government entities do not trigger the tax. Certain transfers incident to divorce under a court order are exempt when the transfer is required by the dissolution of marriage agreement. Deeds where no consideration is exchanged, such as a deed correcting a legal description or a deed conveying property into a revocable trust for no consideration, are also exempt because the tax is based on consideration, and zero consideration means zero tax.
The exam occasionally tests exemptions by describing a scenario where a government agency transfers property or where a deed corrects a prior legal error. Students who automatically calculate documentary stamps on every deed described in a question miss the exemption and choose an answer that includes tax where none is due. If the question describes a transfer with no consideration or a government-to-government transfer, the documentary stamps are zero.
For a deeper look at deed types and how they transfer ownership, see the property rights and ownership guide.
How the exam tests this: "A property sells for $325,000 in Broward County. What are the documentary stamps on the deed?" The answer requires three steps: confirm the sale price ($325,000), confirm no rounding is needed (already divisible by $100), and multiply. $325,000 / $100 = 3,250 x $0.70 = $2,275. Students who use $0.35 (the note rate) get $1,137.50 and lose the point. The exam is testing whether you know which rate applies to which document, not whether you can do the arithmetic.
Documentary Stamps on Notes and Mortgages
Documentary stamps on promissory notes are calculated at $0.35 per $100 of the loan amount, exactly half the deed rate, and the buyer pays them. This rate is governed by F.S. 201.08. The critical distinction: the tax is levied on the promissory note, not on the mortgage document itself. The promissory note is the borrower's promise to repay the debt. The mortgage is the security instrument that pledges the property as collateral. Documentary stamps are paid on the note because the note is the evidence of the debt.
The Rate and the Formula
| Component | Detail |
|---|---|
| Rate | $0.35 per $100 of loan amount |
| Applied to | Face value of the promissory note (loan amount) |
| Rounding | Round loan amount UP to nearest $100 before multiplying |
| Who pays | Buyer (borrower) |
| Applies in | All 67 Florida counties (no Miami-Dade exception for notes) |
| Statute | F.S. 201.08 |
The formula: Loan Amount (rounded up to nearest $100) / $100 x $0.35 = Documentary Stamps on the Note
The Three Rate Confusion Traps
Trap 1: Using the deed rate ($0.70) on a note. This is the single most common documentary stamp mistake on the exam. The deed rate is $0.70. The note rate is $0.35. Students who apply $0.70 to the loan amount calculate exactly double the correct answer. When the exam shows $0.70 worth of stamps and $0.35 worth of stamps as answer choices, both numbers look familiar, and the student who grabbed the wrong rate loses the point.
Trap 2: Using the note rate ($0.35) on a deed. The reverse error. Students who use $0.35 on the sale price calculate exactly half the correct deed stamps. The exam exploits this by placing $0.35 results as distractor answers on deed stamp questions.
Trap 3: Applying doc stamps to the mortgage instead of the note. The tax is on the promissory note, which represents the debt. The mortgage is the security instrument. The exam may describe both documents in the question stem. The stamps go on the note.
Rate Comparison
| Document | Rate | Applied To | Who Pays |
|---|---|---|---|
| Deed | $0.70 per $100 | Sale price | Seller |
| Promissory note | $0.35 per $100 | Loan amount | Buyer |
How the exam tests this: "A buyer obtains a $280,000 mortgage to purchase a home. What are the documentary stamps on the note?" $280,000 / $100 = 2,800 x $0.35 = $980. The exam will include $1,960 as an answer choice (the result of using $0.70 instead of $0.35). Students who pick $1,960 used the deed rate on the note. The exam is not testing your multiplication skills. It is testing whether you match the rate to the document.
The Miami-Dade Exception
Miami-Dade County is the only county in Florida with different documentary stamp rates on deeds, and the exam tests this exception by naming the county in the question stem and waiting for students to miss it. While all other counties use the standard $0.70 deed rate, Miami-Dade imposes its own rates under F.S. 201.02(1).
Miami-Dade Rate Table
| Property Type | Rate | Breakdown |
|---|---|---|
| Single-family residence (Miami-Dade) | $0.60 per $100 | $0.60 base rate (no surtax) |
| Non-single-family property (Miami-Dade) | $1.05 per $100 | $0.60 base + $0.45 surtax |
| All other 66 Florida counties | $0.70 per $100 | Standard statewide rate |
Single-Family Properties in Miami-Dade
For deeds transferring single-family residences in Miami-Dade County, the documentary stamp rate is $0.60 per $100, which is $0.10 less than the standard statewide rate of $0.70. This lower rate applies only to single-family residential property. Single-family homes in Miami-Dade are exempt from the $0.45 surtax that applies to all other property types in the county. The tested rule is clean: if the property is a single-family residence in Miami-Dade, the rate is $0.60 per $100 of the sale price. If it is any other property type in Miami-Dade, the rate is $1.05 per $100.
Non-Single-Family Properties in Miami-Dade
For all other property types in Miami-Dade, including commercial, industrial, multi-family, and vacant land, the rate is $1.05 per $100. This rate consists of the $0.60 base rate plus a $0.45 surtax. The surtax is what makes the non-single-family rate higher than the statewide rate of $0.70.
Worked Example: Miami-Dade Single-Family
A single-family home in Miami-Dade County sells for $475,000.
- Sale price: $475,000 (already divisible by $100, no rounding needed)
- Rate: $0.60 per $100 (single-family in Miami-Dade)
- Calculation: $475,000 / $100 = 4,750 x $0.60 = $2,850
If this same property were in Broward County: $475,000 / $100 = 4,750 x $0.70 = $3,325. The Miami-Dade single-family rate saves the seller $475. The exam puts both numbers as answer choices.
Worked Example: Miami-Dade Non-Single-Family
A commercial building in Miami-Dade County sells for $800,000.
- Sale price: $800,000 (already divisible by $100)
- Rate: $1.05 per $100 (non-single-family in Miami-Dade)
- Calculation: $800,000 / $100 = 8,000 x $1.05 = $8,400
If this property were in Broward County: $800,000 / $100 = 8,000 x $0.70 = $5,600. The Miami-Dade non-single-family rate costs the seller $2,800 more. The exam includes both numbers as answer choices.
Why Only Miami-Dade?
Miami-Dade County has its own charter government, and the documentary stamp rate exception is a legacy of that charter authority. No other Florida county has adopted a different rate. The exam does not require you to know the historical reason for the exception. It requires you to know three facts: Miami-Dade has a different rate, single-family deeds use $0.60, and non-single-family deeds use $1.05. If the county in the question is anything other than Miami-Dade, use $0.70. If the county is Miami-Dade, determine the property type and select the correct rate.
Note Stamps in Miami-Dade
The Miami-Dade exception applies only to deed stamps. Documentary stamps on notes remain $0.35 per $100 in all 67 Florida counties, including Miami-Dade. The surtax does not apply to notes. Intangible tax also remains the same in Miami-Dade as in every other county. Students who adjust the note rate or intangible tax rate for Miami-Dade are creating exceptions that do not exist. The only variable that changes in Miami-Dade is the deed stamp rate.
How the exam tests this: "A commercial property in Miami-Dade County sells for $500,000. What are the documentary stamps on the deed?" The answer is $500,000 / $100 = 5,000 x $1.05 = $5,250. The exam will include $3,500 ($0.70 rate, ignoring Miami-Dade), $3,000 ($0.60 rate, using single-family rate on commercial), and $1,750 ($0.35 note rate) as distractors. Every wrong answer corresponds to a specific mistake a student made.
Intangible Tax on New Mortgages
Intangible tax is levied at 2 mills per dollar ($0.002) on the face value of new mortgages, the buyer pays it at closing, and it does not vary by county. This tax is governed by F.S. 199.133. Unlike the documentary stamps on deeds and notes, intangible tax does not use a "per $100" calculation and does not require rounding up. It applies directly to the exact loan amount.
The Formula
| Component | Detail |
|---|---|
| Rate | 2 mills per dollar = $0.002 per dollar |
| Applied to | Face value of new mortgage (loan amount) |
| Rounding | No rounding required (use exact dollar amount) |
| Who pays | Buyer (borrower) |
| Applies in | All 67 Florida counties (no exceptions) |
| Key limitation | Applies ONLY to new mortgages, not assumptions |
| Statute | F.S. 199.133 |
The formula: Loan Amount x $0.002 = Intangible Tax
A $300,000 new mortgage generates $300,000 x $0.002 = $600 in intangible tax.
New Mortgages Only
The intangible tax applies to new mortgage obligations. When a buyer assumes an existing mortgage instead of obtaining a new one, no intangible tax is due on the assumed mortgage because the tax was already paid when the original mortgage was created. If a buyer assumes an existing mortgage and also takes out a new second mortgage, the intangible tax applies only to the new second mortgage. This distinction is the foundation of one of the 10 worked examples below.
The same principle applies to refinancing. When a homeowner refinances an existing mortgage, the new mortgage is a new obligation and triggers the intangible tax on the full amount of the new loan. The fact that the homeowner had a previous mortgage on the same property does not exempt the new mortgage from intangible tax. Each new mortgage is a new taxable event.
For exam purposes, focus on the word "new." If the question describes a buyer obtaining a new mortgage, intangible tax applies. If the question describes a buyer assuming an existing mortgage, intangible tax does not apply to the assumed amount. If both occur in the same transaction, calculate intangible tax only on the new portion.
Intangible Tax vs Documentary Stamps
| Feature | Documentary Stamps (Notes) | Intangible Tax |
|---|---|---|
| Rate | $0.35 per $100 | 2 mills ($0.002 per dollar) |
| Rounding | Round up to nearest $100 | No rounding |
| Applied to | Face value of promissory note | Face value of new mortgage |
| Assumed mortgages | Not applicable (no new note) | Not applicable (not a new mortgage) |
| Who pays | Buyer | Buyer |
Both taxes apply to the lending side of the transaction, and both are paid by the buyer. The exam tests whether students can calculate both correctly on the same transaction and keep the two taxes separate.
How the exam tests this: "A buyer obtains a new $350,000 mortgage. What is the intangible tax?" $350,000 x $0.002 = $700. Students who calculate $350,000 / $100 x $0.35 = $1,225 used the documentary stamp formula instead of the intangible tax formula. The exam places both $700 and $1,225 as answer choices. The question is testing which formula you use, not whether you can multiply.
Who Pays What at Closing
The seller pays documentary stamps on the deed, and the buyer pays documentary stamps on the note and the intangible tax, and reversing these assignments is one of the most common mistakes on closing cost exam questions. Understanding who pays what requires understanding which document each party is responsible for. The seller delivers the deed (transferring ownership), so the seller pays the tax on the deed. The buyer signs the promissory note (creating the debt), so the buyer pays the taxes associated with the new loan. For a full discussion of closing disclosure requirements and TRID timelines, see the mortgages and lending guide.
Who Pays Comparison Table
| Closing Cost | Who Pays | Why |
|---|---|---|
| Documentary stamps on the deed | Seller | Seller delivers the deed transferring ownership |
| Documentary stamps on the note | Buyer | Buyer signs the note creating the debt |
| Intangible tax on new mortgage | Buyer | Buyer creates the new mortgage obligation |
| Recording fee for the deed | Buyer (customary) | Buyer wants the deed recorded for protection |
| Recording fee for the mortgage | Buyer | Buyer's lender requires recording |
| Title insurance (owner's policy) | Seller (customary in most FL counties) | Seller customarily provides marketable title |
| Title insurance (lender's policy) | Buyer | Buyer's lender requires coverage |
| Broker commission | Seller (typically) | Commission is negotiated in listing agreement |
| Survey | Buyer (customary) | Buyer's lender often requires a survey |
| Prorated property taxes (owed) | Seller | Seller pays for days they owned the property |
| Prorated property taxes (prepaid) | Buyer | Buyer reimburses seller for prepaid taxes beyond closing |
Two Critical Points
First, documentary stamps on the deed are a seller expense, and documentary stamps on the note are a buyer expense. The same tax name ("documentary stamps") applies to two different documents paid by two different parties. Students see "documentary stamps" in a question and assign the cost to the wrong party because they do not read which document the question specifies. The deed is the seller's responsibility. The note is the buyer's responsibility.
Second, intangible tax is always a buyer expense. The buyer is creating a new mortgage obligation, and the intangible tax is the cost of recording that new obligation. There is no intangible tax on the seller's side of the transaction because the seller is not creating a new mortgage.
Prorations at Closing
Prorations divide shared expenses between the buyer and seller based on how many days each party owns the property during the billing period. Property taxes are the most common prorated item. In Florida, property taxes are paid in arrears, meaning the tax bill covers the calendar year and is not due until November. If closing occurs on July 1, the seller has owned the property for half the year and owes half the annual property tax. The buyer will ultimately pay the full tax bill and receives a credit from the seller for the seller's share at closing. The math formulas guide covers the step-by-step proration calculations the exam tests.
Other prorated items include homeowners association dues, prepaid insurance premiums, and prepaid rent (if the property is tenant-occupied). The closing agent calculates each proration based on the closing date and assigns credits and debits to the appropriate party on the closing statement.
Custom vs Law
Many closing cost assignments are based on local custom rather than statutory mandate. Title insurance payment customs vary by county. In most Florida counties, the seller pays for the owner's title insurance policy. In some counties (notably Miami-Dade and Broward), the buyer pays. The exam typically asks about documentary stamps and intangible tax, where the payment responsibility is set by statute and custom, not about title insurance payment customs that vary by location. When the exam asks "who pays," focus on the deed/note/mortgage distinction.
How the exam tests this: "At closing, which party is responsible for paying documentary stamps on the promissory note?" The answer is the buyer. The buyer is the borrower who signs the promissory note. Students who answer "the seller" are confusing deed stamps (seller pays) with note stamps (buyer pays). The exam deliberately uses "documentary stamps" without immediately specifying "deed" or "note" in the answer choices, forcing you to read the question stem carefully to identify which document is referenced.
The Rounding Rule That Changes Every Answer
For documentary stamp calculations, you must round the sale price or loan amount UP to the nearest $100 before applying the rate, and rounding down instead of up produces the wrong answer that appears on the exam as a distractor. This rounding rule applies to both deed stamps and note stamps. It does not apply to intangible tax, which uses the exact dollar amount.
Why Rounding Matters
Documentary stamps are calculated "per $100 or fraction thereof." This phrase from F.S. 201.02 means that any amount over a complete $100 increment counts as an additional $100. A sale price of $385,250 is not rounded to $385,200 (down). It is rounded to $385,300 (up). The extra $50 above $385,200 triggers another full $100 increment.
Rounding Examples
| Original Amount | Rounded UP to Nearest $100 | Common Mistake (Rounded Down) |
|---|---|---|
| $385,250 | $385,300 | $385,200 (wrong) |
| $289,750 | $289,800 | $289,700 (wrong) |
| $412,001 | $412,100 | $412,000 (wrong) |
| $500,000 | $500,000 (no rounding needed) | N/A |
| $325,099 | $325,100 | $325,000 (wrong) |
When Rounding Does NOT Apply
Intangible tax does not require rounding. The intangible tax rate is 2 mills per dollar, applied to the exact loan amount. If the loan amount is $289,750, the intangible tax is $289,750 x $0.002 = $579.50. You do not round $289,750 up to $289,800 before calculating intangible tax.
This creates a trap on multi-step problems. When a question asks you to calculate all three taxes (deed stamps, note stamps, and intangible tax), you must round up for the first two and use the exact amount for the third. Students who apply the rounding rule uniformly to all three calculations get the intangible tax wrong. Students who skip rounding entirely get the documentary stamps wrong. The 10 worked examples below demonstrate both scenarios.
How the exam tests this: "A property sells for $289,750. What are the documentary stamps on the deed?" Step 1: Round $289,750 up to $289,800. Step 2: $289,800 / $100 = 2,898 x $0.70 = $2,028.60. The exam will include $2,028.25 as a distractor (the result of rounding down to $289,700: $289,700 / $100 = 2,897 x $0.70 = $2,027.90, or using the unrounded amount). Every rounding direction error produces a different wrong answer, and every wrong answer appears on the exam.
10 Worked Calculation Examples
These 10 examples cover every documentary stamp and intangible tax scenario the exam tests. Work through each one step by step. The correct approach is always the same four-step process: (1) identify the document (deed, note, or new mortgage), (2) select the correct rate based on the document, the county, and the property type, (3) apply rounding up to the nearest $100 for doc stamps or use the exact amount for intangible tax, and (4) calculate. If you follow these four steps in order on every closing cost question, you will not make rate swap errors, rounding errors, or county errors. The steps force you to read the question before you reach for a formula.
Example 1: Standard Deed Stamps
Scenario: A property in Broward County sells for $325,000. Calculate the documentary stamps on the deed.
Step 1: Identify the document. This is a deed, so use $0.70 per $100.
Step 2: Check rounding. $325,000 is evenly divisible by $100. No rounding needed.
Step 3: Calculate. $325,000 / $100 = 3,250 x $0.70 = $2,275.00
The trap: Using $0.35 (the note rate) gives $1,137.50, which will appear as a distractor.
Example 2: Standard Note Stamps
Scenario: A buyer obtains a $260,000 mortgage. Calculate the documentary stamps on the note.
Step 1: Identify the document. This is a promissory note, so use $0.35 per $100.
Step 2: Check rounding. $260,000 is evenly divisible by $100. No rounding needed.
Step 3: Calculate. $260,000 / $100 = 2,600 x $0.35 = $910.00
The trap: Using $0.70 (the deed rate) gives $1,820.00. That is exactly double the correct answer, and it will appear as an answer choice.
Example 3: Standard Intangible Tax
Scenario: A buyer obtains a new $260,000 mortgage. Calculate the intangible tax.
Step 1: Confirm this is a new mortgage (not an assumption). Intangible tax applies.
Step 2: No rounding required for intangible tax.
Step 3: Calculate. $260,000 x $0.002 = $520.00
The trap: Confusing this with documentary stamps on the note. $260,000 / $100 x $0.35 = $910.00 is the note stamps, not the intangible tax. The exam may ask for one or both.
Example 4: Rounding Required
Scenario: A property sells for $289,750 in Palm Beach County. Calculate the documentary stamps on the deed.
Step 1: Identify the document. Deed, so $0.70 per $100.
Step 2: Round up. $289,750 rounds up to $289,800 (the next $100 increment).
Step 3: Calculate. $289,800 / $100 = 2,898 x $0.70 = $2,028.60
The trap: Rounding down to $289,700 gives $289,700 / $100 = 2,897 x $0.70 = $2,027.90. The difference is small ($0.70), but the wrong answer is on the exam.
Example 5: All Three Taxes Combined
Scenario: A property in Hillsborough County sells for $450,000. The buyer obtains a new $360,000 mortgage. Calculate all three transfer taxes.
Deed stamps (seller pays):
- Sale price: $450,000 (no rounding needed)
- $450,000 / $100 = 4,500 x $0.70 = $3,150.00
Note stamps (buyer pays):
- Loan amount: $360,000 (no rounding needed)
- $360,000 / $100 = 3,600 x $0.35 = $1,260.00
Intangible tax (buyer pays):
- Loan amount: $360,000 (no rounding for intangible tax)
- $360,000 x $0.002 = $720.00
Total transfer taxes: $3,150 + $1,260 + $720 = $5,130.00
The trap: Missing one of the three taxes. The exam asks for the total and includes partial answers (e.g., $3,150 alone, or $1,980 for just the buyer's two taxes) as distractors. Read the question carefully: does it ask for total transfer taxes, deed stamps only, or buyer's taxes only?
Example 6: Miami-Dade Single-Family
Scenario: A single-family home in Miami-Dade County sells for $475,000. Calculate the documentary stamps on the deed.
Step 1: Identify the county and property type. Miami-Dade, single-family. Use $0.60 per $100.
Step 2: Check rounding. $475,000 is evenly divisible by $100. No rounding needed.
Step 3: Calculate. $475,000 / $100 = 4,750 x $0.60 = $2,850.00
The trap: Using $0.70 (the standard rate for every other county) gives $3,325.00. Using $1.05 (the non-single-family Miami-Dade rate) gives $4,987.50. Both wrong answers target students who miss either the county exception or the property type distinction.
Example 7: Miami-Dade Non-Single-Family (Commercial)
Scenario: A commercial building in Miami-Dade County sells for $800,000. Calculate the documentary stamps on the deed.
Step 1: Identify the county and property type. Miami-Dade, commercial (non-single-family). Use $1.05 per $100.
Step 2: Check rounding. $800,000 is evenly divisible by $100. No rounding needed.
Step 3: Calculate. $800,000 / $100 = 8,000 x $1.05 = $8,400.00
The trap: Using $0.60 (single-family Miami-Dade rate) gives $4,800. Using $0.70 (standard statewide rate) gives $5,600. The question specifies "commercial" and "Miami-Dade" for a reason. Both words matter.
Example 8: Full Miami-Dade Closing
Scenario: A single-family home in Miami-Dade County sells for $650,000. The buyer obtains a new $520,000 mortgage. Calculate all three transfer taxes.
Deed stamps (seller pays):
- Miami-Dade single-family: $0.60 per $100
- $650,000 / $100 = 6,500 x $0.60 = $3,900.00
Note stamps (buyer pays):
- Note stamps do NOT have a Miami-Dade exception. Use $0.35 per $100.
- $520,000 / $100 = 5,200 x $0.35 = $1,820.00
Intangible tax (buyer pays):
- No county exception. Use $0.002 per dollar.
- $520,000 x $0.002 = $1,040.00
Total transfer taxes: $3,900 + $1,820 + $1,040 = $6,760.00
The trap: Applying the Miami-Dade exception to note stamps or intangible tax. The Miami-Dade rate difference applies only to deed stamps. Note stamps and intangible tax are the same in every county.
Example 9: Rounding Plus Miami-Dade
Scenario: A non-single-family property in Miami-Dade County sells for $412,350. Calculate the documentary stamps on the deed.
Step 1: Identify the county and property type. Miami-Dade, non-single-family. Use $1.05 per $100.
Step 2: Round up. $412,350 rounds up to $412,400.
Step 3: Calculate. $412,400 / $100 = 4,124 x $1.05 = $4,330.20
The trap: This is a double trap. Students must get both the rate ($1.05, not $0.60 or $0.70) and the rounding (up, not down) correct. Using $0.70 on the unrounded amount gives $412,350 x 0.007 = $2,886.45, which is wrong on two counts. The exam places this wrong answer alongside the correct one.
Example 10: Assumption Scenario
Scenario: A buyer purchases a property for $300,000. The buyer assumes the seller's existing $200,000 mortgage and obtains a new second mortgage of $100,000. Calculate the intangible tax.
Step 1: Identify which mortgages are new. The $200,000 mortgage is an existing loan being assumed. The $100,000 mortgage is new.
Step 2: Intangible tax applies only to the new mortgage.
Step 3: Calculate. $100,000 x $0.002 = $200.00
The trap: Charging intangible tax on the full $300,000 ($600) or on both mortgages combined ($200,000 + $100,000 = $300,000 x $0.002 = $600). Intangible tax was already paid when the $200,000 mortgage was originally created. The buyer does not pay it again on an assumed mortgage. Only the new $100,000 mortgage generates intangible tax.
Recording Fees and Other Closing Costs
Recording fees are charged for recording documents in the county's official records, and they appear on the closing statement as separate line items from documentary stamps and intangible tax. The buyer typically pays recording fees because the buyer benefits from having the deed and mortgage recorded in the public records.
Recording Fees
Recording fees in Florida are set by statute and charged per page. The deed and the mortgage are both recorded in the official records of the county where the property is located. The deed is recorded to provide constructive notice that the buyer is the new owner. Without recording, a subsequent buyer who searches the public records would not find evidence of the transfer, creating a potential title dispute. The mortgage is recorded to establish the lender's lien priority. A mortgage that is not recorded may lose priority to subsequently recorded liens.
Recording fees are relatively small compared to documentary stamps and intangible tax, but they do appear on closing statements and may appear on the exam as part of a complete closing cost question. The buyer typically pays recording fees for both the deed and the mortgage because recording both documents protects the buyer's ownership and the buyer's lender's security interest.
Title Insurance
Title insurance protects against defects in the title that were not discovered during the title search. Two types exist: the owner's policy (protecting the buyer) and the lender's policy (protecting the lender). In most Florida counties, the seller pays for the owner's policy as a customary closing cost. The buyer's lender typically requires a lender's policy, and the buyer pays for it. Title insurance is a one-time premium paid at closing, not an annual fee.
Other Closing Costs on the Statement
Additional closing costs that may appear on the exam or the closing statement include survey costs, home inspection fees, appraisal fees (see the appraisal guide for how appraisals work), lender origination fees, and prepaid items such as property taxes and insurance.
The Closing Disclosure and TRID
The Closing Disclosure (CD) form replaced the HUD-1 settlement statement for most residential transactions under the TRID (TILA-RESPA Integrated Disclosure) rules. The Closing Disclosure itemizes every cost in the transaction, including documentary stamps, intangible tax, recording fees, title insurance premiums, lender fees, prorations, and prepaid items. Under TRID, the buyer must receive the Closing Disclosure at least 3 business days before closing. If the Closing Disclosure changes significantly after delivery, a new 3-business-day waiting period may be required.
The Loan Estimate (LE) is the companion document that the lender provides within 3 business days of receiving the loan application. The Loan Estimate gives the buyer an advance look at estimated closing costs, interest rate, and monthly payment. The Closing Disclosure provides the final numbers. Students who confuse the timing rules (3 business days for the Loan Estimate after application, 3 business days for the Closing Disclosure before closing) lose points on procedural questions. For TRID timing rules and the full lending disclosure framework, see the mortgages and lending guide.
How the exam tests this: Recording fees and title insurance questions tend to test "who pays" rather than calculation. "Who typically pays for the owner's title insurance policy in Florida?" The customary answer is the seller, though this varies by county and can be negotiated in the contract. "How many business days before closing must the buyer receive the Closing Disclosure?" Three business days. These are recall questions, not math questions.
The 5 Closing Cost Traps That Generate Wrong Answers
These five mistakes account for nearly every incorrect closing cost answer on the exam. Each trap produces a specific wrong number that appears as a distractor in the answer choices.
Trap 1: Using the Deed Rate on Notes
The deed rate is $0.70 per $100. The note rate is $0.35 per $100. When the exam asks for documentary stamps on the note and a student uses $0.70, the answer is exactly double the correct amount. This is the most common documentary stamp error. The doubled answer always appears as an answer choice. If your calculated answer is exactly double one of the other choices, you may have used the wrong rate.
A helpful self-check: for any note stamp calculation, your answer should be exactly half of what the deed stamps would be on the same dollar amount. If you calculate note stamps of $2,100 on a $300,000 loan, check by calculating deed stamps on $300,000: $300,000 / $100 x $0.70 = $2,100. Those numbers match, which means you used the deed rate. The correct note stamps are $300,000 / $100 x $0.35 = $1,050, exactly half.
Trap 2: Forgetting Miami-Dade
The exam names the county in the question stem. If the county is Miami-Dade, the deed stamp rate changes. If you use $0.70 for a Miami-Dade deed, you get the wrong answer every time. The county name is a signal. Read it. If it says Miami-Dade, determine the property type (single-family at $0.60 or non-single-family at $1.05) and use the correct rate.
Trap 3: Rounding Down Instead of Up
Documentary stamps are calculated on the amount "per $100 or fraction thereof." Any amount above a complete $100 increment rounds up, not down. Students who round down produce an answer that is $0.70 (for deeds) or $0.35 (for notes) less than the correct answer. The wrong answer appears on the exam. Always round up.
Trap 4: Including Intangible Tax in a Documentary Stamp Total
When the exam asks "What are the total documentary stamps?" it is asking for deed stamps plus note stamps. It is not asking for intangible tax, which is a separate tax with a different formula. Students who add intangible tax to the documentary stamp total inflate their answer and pick the wrong choice. Read the question: does it ask for "documentary stamps," "intangible tax," "total transfer taxes," or "buyer's total closing costs"? Each phrasing produces a different number.
Trap 5: Confusing Who Pays What
The seller pays deed stamps. The buyer pays note stamps and intangible tax. When the exam asks "What is the seller's total transfer tax obligation?" and you include note stamps, you have added a buyer expense to the seller's column. When the exam asks "What does the buyer owe in transfer taxes?" and you include deed stamps, you have added a seller expense. The party depends on the document.
The memory aid is simple: the seller delivers the deed (seller pays deed stamps), the buyer signs the note and creates the mortgage (buyer pays note stamps and intangible tax). If the question mentions "the deed," the answer involves the seller. If the question mentions "the note" or "the mortgage," the answer involves the buyer. Students who think of both taxes as "transfer taxes" without distinguishing which document triggers which tax assign costs to the wrong party.
How the exam tests this: The exam rarely asks a single straightforward calculation. It asks for a specific party's specific tax obligation. "What is the buyer's total obligation for documentary stamps and intangible tax on a $400,000 purchase with a $320,000 new mortgage?" The buyer pays note stamps ($320,000 / $100 x $0.35 = $1,120) plus intangible tax ($320,000 x $0.002 = $640). Total: $1,760. The exam includes $2,800 (deed stamps at $0.70 on the sale price), $3,920 (all three taxes combined), and other distractors that combine the wrong taxes for the wrong party.
2025-2026 Updates: HB 7031 and FinCEN
Two recent changes affect closing procedures in Florida, and while neither changes the documentary stamp or intangible tax rates, both may appear in exam questions about taxes and closing procedures.
HB 7031: Business Rent Tax Eliminated
Florida was one of only a few states that imposed sales tax on commercial lease payments (the "business rent tax"). HB 7031 eliminated this tax effective October 1, 2025. Before the change, commercial tenants paid sales tax on their rent, and this tax was often itemized as a closing cost adjustment on commercial transactions where lease assignments were involved. With the elimination of the business rent tax, this line item no longer appears.
For the exam, the key fact is that Florida no longer imposes sales tax on commercial lease payments. If the exam references the business rent tax in a current-law context, the answer is that it has been eliminated. If the exam asks about historical practice or includes a date-specific scenario set before October 2025, the old rules would apply. The exam is more likely to test the current status: the business rent tax no longer exists in Florida.
FinCEN BOI Reporting
The Financial Crimes Enforcement Network (FinCEN) requires Beneficial Ownership Information (BOI) reporting under the Corporate Transparency Act. This reporting requirement affects real estate closings that involve entity buyers (LLCs, corporations) because the closing agent may need to verify compliance with BOI reporting obligations. All-cash entity purchases in particular have drawn regulatory attention because they can be used to obscure the identity of the actual buyer.
For the exam, the key fact is awareness that entity buyers at closing may have federal reporting obligations beyond the standard state and local transfer taxes. The exam is unlikely to test specific FinCEN filing procedures, but it may include BOI reporting as part of a question about closing agent responsibilities or compliance requirements.
The broader context is that real estate closings increasingly involve federal compliance checks alongside state transfer taxes. The closing agent must ensure that documentary stamps, intangible tax, and recording fees are correctly calculated under Florida law while also verifying that entity buyers have met federal reporting obligations. These are separate systems, and the exam tests whether students understand which rules come from state law (documentary stamps, intangible tax) and which come from federal regulation (BOI reporting, TRID disclosure requirements). This connects to the broader compliance framework covered in the Florida-specific content guide.
How the exam tests this: "Which of the following taxes was eliminated in Florida in 2025?" The answer is the sales tax on commercial lease payments (business rent tax), eliminated by HB 7031. Students who answer "documentary stamp tax" or "intangible tax" are confusing the eliminated tax with the taxes that remain unchanged. Documentary stamps and intangible tax remain in full effect. Only the business rent tax was eliminated.
The 4 Closing Cost Distinctions That Cost the Most Points
If you read nothing else in this guide twice, read this.
1. Deed rate vs note rate. Documentary stamps on deeds cost $0.70 per $100 of the sale price. Documentary stamps on notes cost $0.35 per $100 of the loan amount. Students who apply the deed rate to notes double the correct answer. Students who apply the note rate to deeds halve the correct answer. Both wrong answers appear on the exam. The document determines the rate.
2. Miami-Dade vs every other county. Single-family deeds in Miami-Dade use $0.60 per $100. Non-single-family deeds in Miami-Dade use $1.05 per $100. Every other county uses $0.70 per $100. Students who miss the county name in the question use the wrong rate. Students who see "Miami-Dade" but miss the property type use the wrong Miami-Dade rate. Both the county and the property type matter.
3. Round UP, not down. A sale price of $385,250 becomes $385,300, not $385,200. Rounding down gives you a lower answer, and that lower answer is on the exam. The statutory language is "per $100 or fraction thereof," which means any fraction of a $100 increment counts as a full $100.
4. Who pays which tax. The seller pays documentary stamps on the deed. The buyer pays documentary stamps on the note and the intangible tax. Students reverse these because both are "transfer taxes" and both involve the same transaction. The distinction is the document: the seller delivers the deed, the buyer signs the note and creates the mortgage.
These four distinctions account for more lost closing cost points than all other closing cost topics combined. If you can apply each distinction instantly, without pausing to think, you are ready for the closing cost section of the exam.
Closing Cost Quick Reference Table
| Concept | Rule or Rate | Exam Trap |
|---|---|---|
| Doc stamps on deeds | $0.70 per $100 of sale price | Students use $0.35 (note rate) on deeds |
| Doc stamps on notes | $0.35 per $100 of loan amount | Students use $0.70 (deed rate) on notes |
| Intangible tax | 2 mills = $0.002 per dollar of loan amount | Confused with doc stamps formula |
| Miami-Dade single-family deed | $0.60 per $100 | Students use $0.70 (standard rate) |
| Miami-Dade non-single-family deed | $1.05 per $100 ($0.60 + $0.45 surtax) | Students use $0.60 or $0.70 |
| Miami-Dade surtax | $0.45 per $100 on non-single-family | Only in Miami-Dade, only on deeds |
| Note stamps in Miami-Dade | $0.35 per $100 (same as all counties) | Students adjust note rate for Miami-Dade |
| Rounding rule | Round UP to nearest $100 before multiplying | Students round down or skip rounding |
| Intangible tax rounding | No rounding required (use exact amount) | Students round up for intangible tax |
| Seller pays | Doc stamps on the deed | Students assign deed stamps to buyer |
| Buyer pays note stamps | Doc stamps on the promissory note | Students assign note stamps to seller |
| Buyer pays intangible tax | 2 mills on new mortgage amount | Students forget intangible tax entirely |
| New mortgages only | Intangible tax on new mortgages, not assumptions | Students charge intangible on assumed mortgages |
| F.S. 201.02 | Documentary stamp tax on deeds | Governs deed stamp rates and Miami-Dade exception |
| F.S. 201.08 | Documentary stamp tax on notes | Governs note stamp rate |
| F.S. 199.133 | Intangible tax on new mortgages | Governs 2-mill intangible tax |
| Recording fees | Per-page charge for recording deed and mortgage | Buyer typically pays |
| Proration direction | Seller pays through day of closing, buyer pays from day after | Proration math covered in math guide |
| HB 7031 | Business rent tax eliminated (Oct 2025) | Not doc stamps or intangible tax |
| FinCEN BOI reporting | Entity buyers may have federal reporting obligations | Awareness item for closing procedures |
| Closing Disclosure | Buyer receives 3 business days before closing | TRID rule, covered in mortgages guide |
Screenshot this table. Every row is a potential exam question.
5 Closing Cost Exam Scenarios
Test yourself on these five scenarios. Each targets a closing cost distinction the exam tests repeatedly.
Question 1: The Rate Swap
A property in Orange County sells for $375,000. The buyer obtains a $300,000 mortgage. What are the documentary stamps on the deed?
- A. $1,312.50
- B. $2,625.00
- C. $1,050.00
- D. $2,250.00
Answer and Breakdown
The answer is B.
Documentary stamps on the deed are calculated at $0.70 per $100 of the sale price, not the loan amount, and not the note rate. $375,000 / $100 = 3,750 x $0.70 = $2,625.00.
A ($1,312.50) is the most common trap answer. Students who pick A used $0.35 (the note rate) instead of $0.70 (the deed rate): $375,000 / $100 = 3,750 x $0.35 = $1,312.50. This is exactly half the correct answer. When your answer is exactly half of another answer choice, check whether you used the note rate on a deed question. C ($1,050.00) comes from applying $0.35 to the loan amount ($300,000 / $100 x $0.35 = $1,050), which calculates the note stamps, not the deed stamps. The question asks for deed stamps. D ($2,250.00) comes from applying the Miami-Dade single-family rate ($0.60) to the sale price, but the property is in Orange County, where the standard $0.70 rate applies.
Question 2: The Miami-Dade Trap
A commercial property in Miami-Dade County sells for $500,000. What are the documentary stamps on the deed?
- A. $3,000.00
- B. $3,500.00
- C. $5,250.00
- D. $1,750.00
Answer and Breakdown
The answer is C.
Commercial property in Miami-Dade County is non-single-family, which means the rate is $1.05 per $100, not $0.60 (single-family) and not $0.70 (standard statewide). $500,000 / $100 = 5,000 x $1.05 = $5,250.00.
A ($3,000.00) uses $0.60, which is the Miami-Dade single-family rate. Students who pick A recognized Miami-Dade but did not distinguish between single-family and non-single-family. The question says "commercial," which is non-single-family. B ($3,500.00) uses $0.70, the standard statewide rate. Students who pick B ignored the Miami-Dade exception entirely. D ($1,750.00) uses $0.35, the note rate, on the sale price. Students who pick D confused the deed rate with the note rate. Every wrong answer represents a distinct mistake.
Question 3: The Rounding Error
A property in Duval County sells for $289,750. What are the documentary stamps on the deed?
- A. $2,027.90
- B. $2,028.25
- C. $2,028.60
- D. $1,014.30
Answer and Breakdown
The answer is C.
The sale price of $289,750 must be rounded UP to $289,800 before applying the documentary stamp rate. $289,800 / $100 = 2,898 x $0.70 = $2,028.60.
A ($2,027.90) comes from rounding down to $289,700 instead of up: $289,700 / $100 = 2,897 x $0.70 = $2,027.90. Students who round down select this answer. The statutory language "per $100 or fraction thereof" requires rounding up. The $50 above $289,700 triggers another full $100 increment, making the correct base $289,800. B ($2,028.25) comes from skipping rounding entirely and dividing the exact sale price: $289,750 / $100 = 2,897.5 x $0.70 = $2,028.25. Students who ignore the rounding rule and use the raw number select this answer. The law does not allow fractional $100 increments. D ($1,014.30) comes from rounding correctly to $289,800 but using the note rate instead of the deed rate: $289,800 / $100 = 2,898 x $0.35 = $1,014.30. Students who pick D got the rounding right but grabbed the wrong rate. This answer combines two traps in one question: the rounding rule and the rate swap between deeds and notes.
Question 4: The Who-Pays Question
At a real estate closing, which party is responsible for paying documentary stamps on the promissory note?
- A. The seller
- B. The buyer
- C. The lender
- D. Split equally between buyer and seller
Answer and Breakdown
The answer is B.
The buyer pays documentary stamps on the promissory note because the buyer is the borrower who signs the note and creates the debt obligation. Documentary stamps on the note are a buyer expense at closing.
A is the most common wrong answer. Students who pick A are confusing deed stamps (which the seller pays) with note stamps (which the buyer pays). Both taxes are called "documentary stamps," which creates the confusion. The distinction is the document: the seller delivers the deed (seller pays deed stamps), and the buyer signs the note (buyer pays note stamps). C is wrong because the lender is not a party to the transfer tax. The lender receives the note as evidence of the debt, but the borrower pays the stamps. D is wrong because documentary stamps on notes are not split. The buyer pays the full amount. The exam tests whether you know the assignment, not whether you can negotiate.
Question 5: The Full Closing
A property in Broward County sells for $450,000. The buyer obtains a new $360,000 mortgage. What is the total of all three transfer taxes (deed stamps, note stamps, and intangible tax)?
- A. $3,150.00
- B. $4,410.00
- C. $5,130.00
- D. $1,980.00
Answer and Breakdown
The answer is C.
The total transfer taxes require three separate calculations: deed stamps on the sale price, note stamps on the loan amount, and intangible tax on the loan amount. Deed stamps: $450,000 / $100 = 4,500 x $0.70 = $3,150. Note stamps: $360,000 / $100 = 3,600 x $0.35 = $1,260. Intangible tax: $360,000 x $0.002 = $720. Total: $3,150 + $1,260 + $720 = $5,130.
A ($3,150.00) is only the deed stamps. Students who pick A calculated the first tax correctly but stopped there. The question asks for all three. B ($4,410.00) adds deed stamps ($3,150) and note stamps ($1,260) but omits the intangible tax ($720). Students who pick B forgot that intangible tax is a separate tax from documentary stamps. D ($1,980.00) is the buyer's documentary stamp and intangible tax total without deed stamps: $1,260 + $720 = $1,980. Students who pick D calculated only the buyer's taxes, not the total. The question asks for the total of all three transfer taxes, paid by both parties.
What to Study Next
If you got all five right: Closing costs are solid. Move to the contracts guide, which covers 12% of the exam and includes the contract terms that affect closing. Or test your knowledge of property rights and ownership, which covers 8% and pairs with closing costs through deed types and title transfer.
If you got three or four right: Review the rate comparison table (deed vs note) and the Miami-Dade rate table above. Focus on the distinction you missed. Rate swaps, rounding direction, and who-pays-what are the three traps that cost the most points. Come back to these scenarios in two days. The concepts are there. The precision needs one more pass.
If you got two or fewer right: Closing costs are a 9% gap that will cost you significant exam points. Print the reference table, study each content section above, and work through the 10 calculation examples daily until the rates and rounding are automatic. Pair this guide with the math formulas guide for broader calculation practice and the 30-day study plan to structure your review.
How Pass Florida Drills Closing Costs Until the Rates Are Automatic
Closing costs are the topic where similar-looking numbers cost points. $0.70 versus $0.35 is one decimal place. $0.60 versus $1.05 is one county. Rounding up versus rounding down is one direction. The exam puts both answers on the sheet every time, and students who "kind of know" the rates pick the wrong one.
Adaptive targeting detects whether you confuse the deed rate with the note rate, the standard rate with the Miami-Dade rate, or rounding up with rounding down. When you mix up one distinction, the engine feeds you more questions on that specific concept until your accuracy is consistent. It does not waste your time on distinctions you already have down.
Multi-step calculation practice drills all three transfer taxes in the same format the exam uses. The app presents a sale price, a loan amount, and a county, then asks for a specific tax or the total. You practice selecting the right rate, applying the right rounding rule, and identifying the right party under exam conditions.
Miami-Dade scenario practice isolates the county exception with single-family and non-single-family property types until you can identify the correct rate without pausing.
19-topic diagnostic measures your accuracy across all content areas in 20 minutes. Closing costs and tax calculations account for roughly 9 of your 100 questions. The diagnostic shows exactly where your 9% stands and which subtopics need work.
Download Pass Florida and take a free diagnostic across all 19 content areas. In 20 minutes, you will see exactly which closing cost distinctions need work and which ones you can move past.
Frequently Asked Questions
What closing cost topics are on the Florida real estate exam?
The Florida real estate exam tests closing costs across two content areas: Computations and Closing (6%) and Taxes (3%), for a combined 9% of the exam. Topics include documentary stamps on deeds ($0.70 per $100), documentary stamps on notes ($0.35 per $100), the Miami-Dade exception ($0.60 single-family, $1.05 non-single-family), intangible tax on new mortgages (2 mills), who pays each tax at closing, rounding rules, recording fees, and the Closing Disclosure. For the full breakdown of all 19 exam topics, see the topic weight guide.
What is the documentary stamp tax rate on deeds in Florida?
The documentary stamp tax rate on deeds is $0.70 per $100 of the sale price in all Florida counties except Miami-Dade. The sale price must be rounded up to the nearest $100 before applying the rate. The seller pays documentary stamps on the deed. This tax is governed by F.S. 201.02. For a property selling for $400,000, the deed stamps are $400,000 / $100 x $0.70 = $2,800.
What is the documentary stamp tax rate on notes?
The documentary stamp tax rate on promissory notes is $0.35 per $100 of the loan amount in all 67 Florida counties, including Miami-Dade. There is no county exception for note stamps. The buyer pays documentary stamps on the note. This rate is exactly half the deed rate. This tax is governed by F.S. 201.08. For a $300,000 loan, the note stamps are $300,000 / $100 x $0.35 = $1,050.
How does the Miami-Dade exception work?
Miami-Dade County is the only Florida county with different documentary stamp rates on deeds. Single-family residences in Miami-Dade pay $0.60 per $100 of the sale price (lower than the $0.70 standard rate). Non-single-family properties (commercial, multi-family, vacant land) pay $1.05 per $100, which includes a $0.45 surtax on top of the $0.60 base rate. The Miami-Dade exception applies only to deed stamps. Note stamps and intangible tax are the same in Miami-Dade as in every other county.
What is the intangible tax in Florida?
The intangible tax is levied at 2 mills per dollar ($0.002 per dollar) on the face value of new mortgages. It is governed by F.S. 199.133. The buyer pays the intangible tax at closing. Unlike documentary stamps, the intangible tax does not require rounding up to the nearest $100. It applies to the exact loan amount. For a $250,000 new mortgage, the intangible tax is $250,000 x $0.002 = $500. The tax applies only to new mortgages, not to assumed mortgages.
Who pays documentary stamps at closing?
The seller pays documentary stamps on the deed. The buyer pays documentary stamps on the promissory note. This distinction exists because the seller delivers the deed (transferring ownership of the property) and the buyer signs the note (creating the debt obligation). Both taxes carry the same name, but they apply to different documents and are paid by different parties. The buyer also pays the intangible tax on the new mortgage.
How do you round for documentary stamp calculations?
For documentary stamp calculations, round the sale price (for deed stamps) or the loan amount (for note stamps) UP to the nearest $100 before applying the rate. The statute uses the phrase "per $100 or fraction thereof," meaning any amount above a complete $100 increment counts as another full $100. A sale price of $289,750 rounds up to $289,800. A sale price of $412,001 rounds up to $412,100. Intangible tax does not use this rounding rule and is calculated on the exact dollar amount.
What is the Miami-Dade surtax on non-single-family properties?
The Miami-Dade surtax is $0.45 per $100, which is added to the $0.60 base documentary stamp rate on deeds for non-single-family properties. The combined rate is $1.05 per $100. Non-single-family properties include commercial buildings, multi-family residences, industrial properties, and vacant land. Single-family residences in Miami-Dade are exempt from the surtax and pay only $0.60 per $100. No other Florida county imposes a surtax on documentary stamps.
What changed with HB 7031 and the business rent tax?
HB 7031 eliminated the Florida business rent tax (sales tax on commercial lease payments) effective October 1, 2025. Before this change, commercial tenants in Florida paid sales tax on their rent, making Florida one of only a few states with such a tax. The elimination affects commercial lease transactions and may reduce closing cost adjustments on lease assignments. Documentary stamp tax rates and intangible tax rates were not changed by HB 7031. Those rates remain the same.
How do you calculate all three transfer taxes on one transaction?
For a standard Florida transaction (outside Miami-Dade), calculate three taxes separately. First, deed stamps: round the sale price up to the nearest $100, divide by $100, multiply by $0.70. Second, note stamps: round the loan amount up to the nearest $100, divide by $100, multiply by $0.35. Third, intangible tax: multiply the exact loan amount by $0.002. The seller pays the deed stamps. The buyer pays the note stamps and intangible tax. For the total of all transfer taxes, add all three. For a $400,000 sale with a $320,000 loan: deed stamps = $2,800, note stamps = $1,120, intangible tax = $640, total = $4,560.
Related:
The 19 Topics on the Florida Real Estate Exam and How Much Each Is Weighted
Florida Real Estate Exam Math Formulas: The Only Calculations You Need
Mortgages and Lending on the Florida Real Estate Exam: Complete Guide
Florida Real Estate Contracts Guide: Every Rule the Exam Tests
Property Rights and Ownership Types on the Florida Real Estate Exam
Real Estate Appraisal on the Florida Exam: Three Approaches, USPAP, and Key Concepts
The Florida-Specific Content Your Prep Course Probably Skipped
The 30-Day Study Plan for the Florida Real Estate Exam
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