Confused about doc stamps and intangible tax when closing on a condo in Fort Lauderdale Beach? You are not alone. These line items can feel opaque, yet they are standard parts of most Broward County closings. In this guide, you will learn what each tax is, who typically pays, how to estimate the amounts, and what to ask your title company and lender before you sign. Let’s dive in.
What doc stamps cover
Doc stamps are a Florida tax tied to real estate transfers and certain debt instruments. The rules come from Florida Statutes Chapter 201 and guidance from the Florida Department of Revenue. In practice, you will most often see doc stamps on the deed in a sale, and you may hear about doc stamps on notes in the context of financing.
Doc stamps on the deed
- What it is: A tax on the transfer of real property based on the total consideration, usually the sale price.
- Current rate: $0.70 per $100 of the sale price, or 0.007 times the price.
- Simple formula: sale price × 0.007 = deed doc stamps.
- Where it shows up: Your closing statement will list it as a seller cost in many Broward transactions, unless the contract allocates it differently.
Doc stamps on a promissory note
- What it is: A tax historically charged on a promissory note or similar obligation.
- Reference rate: $0.35 per $100 of the loan amount, or 0.0035 times the principal.
- Important interaction: For a mortgage recorded in Florida, the intangible tax on the mortgage usually applies instead of the doc stamp on the note. The title company will determine the correct application for your deal.
What the intangible tax covers
The intangible tax applies to mortgages recorded in Florida. It is a tax on the unpaid principal of the mortgage. Rules are established in Florida Statutes Chapter 199 and administered by the Florida Department of Revenue.
- Current rate: $2.00 per $1,000 of mortgage principal, or 0.002 times the loan amount.
- Simple formula: loan amount × 0.002 = intangible tax.
- When it applies: Typically on a new purchase when you finance. If you are a cash buyer, there is no mortgage and no intangible tax.
Who typically pays in Broward closings
Customs can vary by contract, but in Fort Lauderdale and broader Broward County you will often see the following:
- Seller customarily pays doc stamps on the deed.
- Buyer typically pays the intangible tax on a new mortgage when financing.
- Contract controls. You can negotiate cost allocation, and the title company will show the agreed breakdown on the closing statement.
How to estimate your taxes quickly
Use these back-of-the-envelope formulas to budget. Always confirm the final figures with your title company and lender.
- Deed doc stamps: sale price × 0.007.
- Intangible tax on mortgage: loan amount × 0.002.
- If you hear “doc stamps on the note”: loan amount × 0.0035, but understand that for a recorded mortgage, the intangible tax is commonly used instead. Your closing agent will apply the correct method.
Sample costs in 33304 condo scenarios
Below are typical examples for Fort Lauderdale Beach (ZIP 33304). Exact amounts can vary based on contract terms, exemptions, loan specifics, and rounding by your title company.
Scenario A: $300,000 sale
- Deed doc stamps: 300,000 × 0.007 = $2,100 (often seller’s cost)
- Buyer finances 80% (loan $240,000)
- Intangible tax: 240,000 × 0.002 = $480
- Doc-stamp-on-note comparison: 240,000 × 0.0035 = $840
- Cash buyer: intangible tax = $0
Scenario B: $500,000 sale
- Deed doc stamps: 500,000 × 0.007 = $3,500
- Buyer finances 80% (loan $400,000)
- Intangible tax: 400,000 × 0.002 = $800
- Doc-stamp-on-note comparison: 400,000 × 0.0035 = $1,400
Scenario C: $800,000 sale
- Deed doc stamps: 800,000 × 0.007 = $5,600
- Buyer finances 80% (loan $640,000)
- Intangible tax: 640,000 × 0.002 = $1,280
- Doc-stamp-on-note comparison: 640,000 × 0.0035 = $2,240
Scenario D: $1,500,000 sale
- Deed doc stamps: 1,500,000 × 0.007 = $10,500
- Buyer finances 80% (loan $1,200,000)
- Intangible tax: 1,200,000 × 0.002 = $2,400
- Doc-stamp-on-note comparison: 1,200,000 × 0.0035 = $4,200
Higher LTV example: $500,000 sale at 95% LTV
- Loan $475,000
- Intangible tax: 475,000 × 0.002 = $950
- Doc-stamp-on-note comparison: 475,000 × 0.0035 = $1,663
What to note from these examples:
- The deed doc stamp tracks the sale price and is not affected by how much you finance.
- The intangible tax tracks your loan principal. A larger down payment reduces this line item.
- Your closing statement will also include other costs separate from these taxes.
Exemptions and special cases
Florida allows certain exemptions or partial exemptions. These are specific and require documentation.
- Transfers between spouses or incident to divorce may have exemptions for doc stamps.
- Some transfers to governmental entities and certain nonprofits may be exempt.
- Refinances can have special treatment. Often, only the “new money” beyond the payoff of the prior mortgage is subject to the intangible tax.
Work with your title company and lender to confirm if your situation qualifies. They will apply the correct statute and prepare any required affidavits.
Broward recording fees and other costs
Doc stamps and the intangible tax are only part of your closing costs. You should also budget for:
- Title insurance premiums and title settlement fees.
- Recording fees set by the Broward County Clerk.
- Lender-related charges, prepaid items, and escrows.
- Prorated property taxes, HOA fees, and estoppel charges.
Your title company will pull the current Broward recording-fee schedule and list all charges on your Closing Disclosure or settlement statement.
Practical steps for buyers and sellers
Follow these steps early in your transaction to avoid surprises:
- Ask your title company for a preliminary closing estimate that includes deed doc stamps, intangible tax, and recording fees.
- If you are financing, request a Loan Estimate from your lender and confirm whether the intangible tax will be collected at closing.
- Review your contract to see who pays deed doc stamps and how other costs are allocated.
- If you think an exemption might apply, raise it early and provide documents so the title company can verify and document it.
- For complex situations, such as transfers to or from trusts or intra-family transactions, loop in your closing agent as soon as possible.
Common pitfalls to avoid
- Assuming local custom rather than reading your contract. The contract controls who pays what.
- Mixing up doc stamps and intangible tax. They apply to different things and at different rates.
- Forgetting that cash purchases avoid the intangible tax. No mortgage means no intangible tax.
- Using rough math as final numbers. Only the title company and lender can confirm official closing figures.
Local insight for 33304
In Fort Lauderdale Beach and nearby Broward neighborhoods, many transactions involve condominium properties. That means the deed doc stamp calculation is straightforward, and the intangible tax will depend on your loan size if you finance. Lenders and title companies regularly handle these items and will include them in your Closing Disclosure.
If you are budgeting for a purchase in the 33304 area, start by estimating the deed doc stamps on your target price, then model the intangible tax at several down payment levels. This gives you a realistic range to work with before you write an offer.
The bottom line
Doc stamps and the intangible tax are standard, predictable parts of a Fort Lauderdale closing. The math is simple, but every transaction is unique. Rely on your title company and lender for exact numbers, and make sure your contract clearly states who pays which items.
If you want a precise breakdown for your property and financing plan, connect with a local expert who does this every day. Reach out to the Lauren Kahn Group at One Sotheby’s Int’l Realty for a quick, personalized estimate and a smooth path to closing.
FAQs
Who pays doc stamps and intangible tax in Broward?
- Customarily the seller pays doc stamps on the deed, and the buyer pays the intangible tax on a new mortgage, but your contract can allocate costs differently and the title company will reflect that.
Are doc stamps and the intangible tax the same thing?
- No. Doc stamps on the deed tax the property transfer based on the sale price, while the intangible tax applies to the mortgage principal when a new mortgage is recorded.
Do cash buyers pay the intangible tax in Florida?
- No. The intangible tax is tied to a recorded mortgage, so cash purchases do not incur it.
How do I calculate deed doc stamps on a condo in 33304?
- Multiply the sale price by 0.007; for example, a $500,000 sale would carry about $3,500 in deed doc stamps, subject to the title company’s final calculation.
What is the rate for the intangible tax on a new mortgage?
- The current rate is $2.00 per $1,000 of mortgage principal, which equals 0.002 times your loan amount.
Do refinances pay the same intangible tax as purchases?
- Often only the “new money” in a refinance is taxed, but treatment varies; your title company and lender will compute the correct amount based on your loan documents.
Where do these rules come from in Florida?
- The taxes are established by Florida Statutes Chapters 201 and 199, with administration and guidance from the Florida Department of Revenue; your title company applies these rules to your closing.
