Florida's documentary stamp tax is assessed on real estate deed transfers and mortgage/promissory note obligations — a state-level transaction tax that applies to business real estate purchases, sales, and refinances. For a Florida business buying a $1 million commercial property, the doc stamp tax adds $7,000–$14,000 in closing costs. Understanding doc stamp tax rates, exemptions, and planning strategies is essential for Florida businesses transacting in commercial real estate.
Florida documentary stamp tax rates (2026): Deed transfers: $0.70 per $100 of consideration (or, in Miami-Dade County, $0.60 per $100 for single-family residential — commercial remains $0.70 everywhere). Example: $1,000,000 commercial property sale → doc stamp tax = $7,000. Note transfers/mortgages: $0.35 per $100 of the note amount secured by the mortgage. Example: $800,000 commercial mortgage → doc stamp = $2,800. Both the seller (on the deed) and the borrower (on the note) typically pay — this is a transaction cost distinct from transfer taxes in other states.
On deed transfers: by custom in Florida, the seller pays the doc stamp tax on the deed (exceptions exist — in some counties and by negotiation, the buyer pays). On notes and mortgages: the borrower/mortgagor typically pays. The documentary stamp tax is payable to the Florida DOR and collected at closing by the title agent or attorney. Doc stamps are recorded on the deed as a stamp obligation — failure to pay prevents recording. Florida DOR can audit title agents and real estate professionals for compliance.
Several transfers are exempt from Florida doc stamp: (1) Transfers for no consideration (gifts, estate transfers) — some exceptions apply; (2) Transfers between spouses (but not business entities); (3) Transfers to or from a revocable living trust where the grantor is an existing owner; (4) Transfers between business entities and their owners (with specific conditions — consult a Florida attorney before assuming this exemption applies); (5) Government entity transfers. Business reorganizations (mergers, conversions between entity types under FL law) may qualify for exemption under specific conditions. The exemption analysis is fact-specific and often requires a Florida real estate attorney opinion.
Florida commercial real estate buyers and sellers should budget for doc stamp tax from the outset — it's often an overlooked closing cost. For a $2 million commercial acquisition with $1.5 million financing: deed doc stamp = $14,000; note doc stamp = $5,250; total doc stamp = $19,250. Additionally, Florida's intangible tax ($0.002 per $1 of face amount) applies to new mortgages — $3,000 on a $1.5 million mortgage. Combined transaction taxes of $22,000+ are common on mid-size Florida commercial deals. These are deductible as closing costs (amortized over the life of the loan for the note portion).
A 1031 like-kind exchange does not eliminate Florida documentary stamp tax — it's a transaction tax on the deed transfer, not an income tax on gain. Both the sale of the relinquished property and the purchase of the replacement property are subject to doc stamp. An exchange intermediary holding funds does not create a doc stamp exemption. However, the timing of the exchange and the choice of replacement property both affect total doc stamp exposure — larger exchanges (high replacement property value) generate proportionally larger doc stamp costs, a real out-of-pocket cost to factor into exchange economics.
$0.70 per $100 of consideration statewide for deed transfers. For a $500,000 commercial property, the deed doc stamp is $3,500.
Yes — the documentary stamp tax on business property transfers is a deductible closing cost. The deed portion may be capitalized as part of the property's cost basis; the mortgage doc stamp is amortized over the loan term.
No — the documentary stamp tax is a state transaction tax on deed transfers, not an income tax. Both the sale and purchase in a 1031 exchange are subject to doc stamp.
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