Are doc stamps and intangible tax throwing off your Parkland closing budget? You’re not alone. These Florida-specific taxes can be confusing, especially when you’re trying to pin down who pays what and when. In this guide, you’ll learn what each tax is, how they’re calculated, who typically pays in Broward County, and how to budget with confidence. Let’s dive in.
What these taxes are
Doc stamps on deeds
Florida’s documentary stamp tax on deeds is a state tax on the consideration for transferring real property. In a typical Parkland purchase, “consideration” includes the sale price and any mortgage you agree to assume from the seller. The tax is due when the deed is recorded.
Doc stamps on promissory notes
When you sign a promissory note or similar obligation to pay, Florida imposes documentary stamp tax on the principal amount of that obligation. This commonly appears when a buyer takes out a mortgage to purchase a home. The tax is generally collected when the mortgage and note are recorded.
Intangible tax on mortgages
Florida also levies a state intangible tax on mortgages secured by Florida real property. This tax is calculated on the mortgage principal and, like doc stamps on notes, is typically collected at the time of recording.
Broward County recording fees
Separate from state taxes, the Broward County Clerk of Courts charges recording fees to record your deed and mortgage. These are county fees and will appear as separate line items on your closing statement.
How rates work
Below are commonly cited illustrative rates used to explain the math. Always confirm current rates and rules with the Florida Department of Revenue before you finalize a closing budget.
- Doc stamps on deeds: Multiply the deed’s consideration by the deed tax rate.
- Doc stamps on notes: Multiply the loan principal by the note tax rate.
- Intangible tax on mortgages: Multiply the mortgage principal by the intangible tax rate.
Illustrative example rates often used in Florida:
- Doc stamps on deeds: 0.0070 of the consideration.
- Doc stamps on notes: 0.0035 of the loan principal.
- Intangible tax on mortgages: 0.002 of the loan principal.
For current guidance and any exemptions, review the Florida Department of Revenue’s pages for documentary stamp tax and intangible tax. You can find these by searching the DOR site for “Documentary Stamp Tax” and “Intangible Tax.”
Who typically pays in Parkland closings
Deed doc stamps
In practice, the seller often pays the documentary stamp tax on the deed in Broward County because the tax is tied to the consideration the buyer pays. That said, your contract controls, and parties can negotiate a different allocation.
Mortgage-related taxes and recording fees
The buyer or the buyer’s lender typically pays the mortgage-related taxes and the county recording fees when the mortgage is recorded. The Broward Clerk will not record without the appropriate taxes and fees.
Always check your contract
Your contract should make the allocation clear. If it doesn’t, ask your agent or closing attorney/title company to clarify responsibilities early so there are no surprises.
How the note tax and intangible tax interact
Florida closings often collect either documentary stamp tax on the promissory note or the intangible tax on the mortgage, depending on the instrument and applicable rules. The correct approach can vary based on the loan documents and DOR guidance. Closers in Parkland typically confirm with the Florida DOR and the Broward Clerk which tax is due for your specific file. This is one reason it’s smart to verify early with your lender and title company.
What counts as deed “consideration”
Your deed doc stamp is calculated on the deed’s consideration, which generally includes:
- The purchase price you pay in cash or trade.
- Any mortgage you assume from the seller.
- Any other consideration defined by DOR rules, such as certain liens or non-cash items.
If you assume an existing mortgage, that assumption amount is added to the deed’s consideration and can increase the deed doc stamp due at recording.
Parkland purchase examples
The following examples use the illustrative rates above and are for education only. Always confirm current DOR rates and Broward recording fees before closing.
Example A: Standard financed purchase
- Sale price: 500,000
- New loan: 400,000
Using the illustrative rates:
- Doc stamp on deed: 500,000 × 0.0070 = 3,500
- Doc stamp on note: 400,000 × 0.0035 = 1,400
- Intangible tax on mortgage: 400,000 × 0.002 = 800
In practice, the recording office typically collects either the note doc stamp or the intangible tax for a given instrument per DOR rules. Your closer will confirm which applies to your mortgage documents.
Example B: Purchase with assumed mortgage
- Sale price: 300,000
- Buyer assumes existing mortgage: 150,000
- Cash paid at closing: 150,000
Deed consideration is 300,000. The deed doc stamp applies to the full 300,000.
Example C: Refinance overview
A refinance can be treated differently than a purchase-money mortgage for documentary and intangible taxes. Some refinances may avoid additional doc stamps if no new indebtedness is created beyond the prior obligation. The specifics depend on the transaction structure and DOR rules, so always confirm with your lender and title company.
Budgeting checklist for Parkland and Broward County
Before you sign or schedule closing
- Confirm current Florida DOR rates for documentary stamp tax and intangible tax.
- Pull the Broward County Clerk of Courts recording fee schedule for per-page fees and any special recording charges.
- Review your contract to confirm who pays deed doc stamps, mortgage taxes, and recording fees.
- Ask your lender and closer which mortgage-related tax the clerk will collect at recording for your specific loan documents.
- Verify any claimed exemptions early and gather supporting documentation.
At closing
- Confirm the deed consideration is accurate, including any mortgage assumption amounts.
- Make sure the settlement statement shows doc stamps and intangible or note taxes as separate line items, charged to the correct party.
- Ensure Broward County recording fees are included so the deed and mortgage can be recorded immediately.
After closing
- Verify that recorded documents reflect the payment of taxes and fees as required.
- Keep copies of receipts and the recorded documents for your records and future tax or refinance needs.
Exemptions and special situations
Florida law provides various exemptions and special cases that can reduce or eliminate these taxes. Examples include certain transfers between spouses or close relatives, some court-ordered or governmental transfers, and specific corporate reorganizations. Each exemption has strict criteria and documentation requirements. Assumptions and refinances can also change how taxes apply. Work with your closing team to determine whether an exemption is available and how to document it.
Where to confirm current numbers
- Florida Department of Revenue: Search the DOR site for “Documentary Stamp Tax” and “Intangible Tax” to verify current statutory rates, definitions of consideration, and exemption rules.
- Broward County Clerk of Courts: Review the Clerk’s “Recording Fees” and recording requirements page for the latest per-page fees and any local procedures.
Bottom line for Parkland buyers and sellers
If you understand which taxes apply to your deed and mortgage, who typically pays, and how the numbers are calculated, you can plan your Parkland closing with confidence. Build your estimate using the formulas above, confirm the current DOR rates and Broward Clerk fees, and make sure your contract clearly allocates each item. That way, your final numbers align with your expectations.
If you want a custom, line-by-line estimate tailored to your Parkland property and loan, I can coordinate with your lender and title company so you have clean numbers early in the process. Let’s connect and make your closing straightforward and surprise-free.
FAQs
What are Florida doc stamps on a deed?
- They are state taxes on the consideration paid to transfer real property, typically based on the sale price plus any mortgage the buyer assumes.
Who usually pays deed doc stamps in Broward County?
- In many Parkland deals the seller pays, but the sales contract can allocate this cost differently. Always verify your contract.
What is Florida’s intangible tax on mortgages?
- It is a state tax on mortgages secured by Florida real estate, calculated on the mortgage principal and typically paid at recording.
Do buyers pay both note doc stamps and intangible tax?
- Closers generally collect one mortgage-related tax based on the loan documents and DOR rules. Your title company will confirm which applies.
Are recording fees the same as doc stamps?
- No. Doc stamps and intangible taxes are state taxes. Recording fees are county charges from the Broward Clerk and are separate line items.
Does assuming a mortgage increase deed doc stamps?
- Yes. The assumed mortgage amount is usually part of the deed’s consideration, which increases the tax base for the deed doc stamp.
