Florida Refinance Taxes and Recording Fees

Yes, a Florida refinance may include documentary stamp tax, nonrecurring intangible tax, recording fees, or other closing charges. You may not pay every charge on every dollar of a refinance.

The result depends on the documents and lender. It also depends on the old balance, new loan amount, and changes to borrowers or title.

Ask the lender or closing company to list each government charge on your Loan Estimate. Then compare it with the final Closing Disclosure.

First, identify the transaction type

A refinance often replaces an old loan with a new note and mortgage. These new documents may raise new tax and recording questions.

A renewal, correction, assumption, assignment, or loan modification may have different rules. The document name alone does not decide the result.

The title or closing company should review all documents. This matters for rate-and-term refinances, cash-out refinances, HELOCs, and loans that change borrowers, title, or lenders.

Documentary stamp tax on a Florida refinance

Florida documentary stamp tax may apply to written promises to pay money. A promissory note is one example.

It may also apply to recorded mortgages and other liens. For notes, the rate is 35 cents per $100, or part of $100.

The tax on a note is capped at $2,450. For a recorded mortgage, the rate is also 35 cents per $100, or part of $100.

The mortgage tax has no cap. A refinance may include both a new note and a new mortgage.

That is why documentary stamp tax may appear again. This can happen even if you paid tax on the old loan.

Florida has a narrow renewal exemption. A renewal note must generally continue the same debt.

It must not enlarge the original obligation. It must involve the original obligor and unpaid balance, subject to the statute's rules.

Do not call a standard refinance an exempt renewal without a document review. Some changes are not treated as taxable renewals.

Examples include fixing errors or changing terms unrelated to the debt. They also include adding security or changing the mortgagee or payee.

Nonrecurring intangible tax

Florida also charges a nonrecurring intangible tax on money obligations secured by Florida real property. The rate is 2 mills, or 0.002 of the amount secured by the property.

The lender is legally responsible for this tax. The lender may pass the cost to the borrower.

That is why the charge may appear on your refinance disclosures. Florida law has a specific refinance rule.

It applies when the old obligation was taxed. The new obligation must be with the original obligee or that obligee's assignee.

If the new principal is no more than the old unpaid principal balance plus accrued unpaid interest, no additional intangible tax is due under that rule.

If the new principal is higher, more tax may be due on the extra amount. But there is an important exception.

If the original obligor is not liable under the new obligation, the extra tax may use the full new principal balance. A refinance with a different lender may not fit this specific rule.

Do not assume same-lender or new-lender treatment is automatic.

Cash-out refinances, HELOCs, and title changes

A cash-out refinance raises the new principal balance. The added amount can affect the tax review.

Ask how the closing company treated the old balance and accrued unpaid interest. Also ask about cash-out funds and other added debt.

A HELOC is a credit line backed by your home. Florida's intangible-tax rules can apply to the secured line.

Once tax is paid on the full line amount, no additional intangible tax is due on that full amount. This does not make every HELOC document free of cost.

A mortgage securing a line of credit may be subject to documentary stamp tax when recorded. A new line, replacement line, or credit-limit change needs a document review.

If you refinance a first mortgage and keep a HELOC, the HELOC lender may require a subordination agreement. That agreement may have its own recording charge.

See our guide to refinancing while keeping a Florida HELOC.

You can also compare a home equity loan, HELOC, and cash-out refinance.

Modifications, assumptions, assignments, and deeds

A modification changes an existing loan. A refinance usually replaces it with a new loan.

That difference matters. A modification may avoid some taxes.

But added debt, new borrowers, changed security, or a new recorded instrument can change the result. Florida law has special intangible-tax rules for assignments and assumptions.

An assignment may avoid additional tax when the tax was already paid. An assumption may also avoid additional tax when the debt stays the same and the tax was already paid.

These rules do not answer every documentary stamp tax question. Florida lists recorded mortgage assumptions as documents that may be subject to documentary stamp tax.

A deed change can create a separate issue. Adding or removing an owner may raise another documentary stamp tax question.

Tell the title company about any planned title change before closing. For more planning information, read Can You Refinance After a Florida Loan Modification?

Check the Loan Estimate and Closing Disclosure

The Loan Estimate is an early estimate. The Closing Disclosure shows the final listed charges before closing.

On the Loan Estimate, look under Other Costs and Taxes and Other Government Fees. Federal rules group recording fees and other government charges there.

The Closing Disclosure also lists recording fees under Taxes and Other Government Fees. It shows charges expected to be paid to state and local governments.

Other refinance costs may appear in other sections. These can include title work, settlement services, prepaid interest, payoff amounts, and escrow items.

Escrow is money held to pay bills such as taxes and insurance. Use our guides on comparing Florida Loan Estimates and reviewing a Florida Closing Disclosure.

Questions to ask before signing

• Is this a new replacement loan, renewal, or modification?
• Will a new note and mortgage be recorded?
• What document caused the documentary stamp tax?
• Is nonrecurring intangible tax included?
• What amount was used for the intangible-tax calculation?
• Is the new lender the original obligee or its assignee?
• Does the new loan include cash out or added debt?
• Did the borrowers, owners, or title change?
• Which documents will be recorded in Pinellas County?
• What are the separate county recording fees?

Ask for answers in writing when possible. The closing company can explain the charges it collects.

A tax professional or attorney can advise you about your own situation.

Florida refinance tax FAQs

Do I pay documentary stamp tax every time I refinance?

Not always. A new note or recorded mortgage may be taxable.

A narrow renewal exemption may apply when the legal requirements are met.

Will I pay intangible tax again with the same lender?

Maybe not on the old unpaid balance if the refinance meets Florida's rule. Added principal may create additional tax.

If the original obligor is not liable under the new obligation, the tax calculation may be different.

Are recording fees the same as documentary stamp tax?

No. Recording fees pay a government office to record and index documents.

Documentary stamp tax is a tax on certain documents. Both may appear in refinance costs.

Can the lender charge me for intangible tax?

The lender is legally liable for the tax. The lender may pass the cost to the borrower.

Check how the charge appears on the Loan Estimate and Closing Disclosure.

Official sources

• Florida Department of Revenue: Documentary Stamp Tax
• Florida Department of Revenue: Nonrecurring Intangible Tax
• Florida Statutes, section 201.09: Renewal of existing notes and mortgages
• Florida Statutes, section 199.145: Refinancing, assignments, assumptions, and corrective mortgages
• CFPB Regulation Z, section 1026.37: Loan Estimate disclosures
• CFPB Regulation Z, section 1026.38: Closing Disclosure disclosures
• Florida Mortgage Taxes and Recording Fees at Closing

Compliance note: This article is for education only and is not tax or legal advice. Programs, terms, taxes, fees, and closing charges vary by transaction and may change. All loans are subject to underwriting and credit approval. This is not a commitment to lend.