If you are planning a sale or purchase in Palm Beach County, documentary stamp taxes are one of the biggest line items on the closing statement. Understanding what they are, who pays them, and how to estimate them will help you plan your net proceeds or cash to close with confidence.
Why doc stamps matter at closing
Doc stamps show up on almost every Florida real estate closing. In Palm Beach County, they can shape a seller’s bottom line and a buyer’s total funds needed. When you know how they work, you can avoid last‑minute surprises, set clear expectations with family members or co‑decision makers, and move forward with less stress.
Doc stamps defined in plain English
Florida charges a state excise tax called the documentary stamp tax on certain documents used in real estate deals. There are two common types you will see at closing. The rules live in Florida law and are collected by the county clerk when documents are recorded according to the Florida Statutes and the Palm Beach County Clerk.
On the deed vs on the loan
- Doc stamps on the deed: This applies to deeds that transfer ownership of Florida real estate. The tax is based on the total price paid for the property. Palm Beach County uses the state rate for deeds and collects it when the deed is recorded per statute and clerk guidance.
- Doc stamps on the note or mortgage: This applies to promissory notes and mortgages. The tax is based on the loan amount. Florida also imposes a separate one‑time intangible tax on mortgages secured by Florida real estate per statute and the nonrecurring intangible tax law.
These are different from county recording fees, which are smaller fixed charges for the number of pages recorded as listed by the Clerk.
Cash, financed, and refinance scenarios
- Cash purchase: You will typically see doc stamps on the deed. There is no loan, so there are no loan‑related doc stamps or intangible tax.
- Financed purchase: Expect doc stamps on the deed plus loan‑related doc stamps and the mortgage intangible tax. These usually appear as buyer costs unless negotiated otherwise.
- Refinance: You are not transferring ownership, so there is no deed tax. You will see loan‑related doc stamps and the mortgage intangible tax tied to the new loan amount.
Who pays doc stamps at closing
Local custom and negotiable terms
In Palm Beach County, it is customary for the seller to pay the doc stamps on the deed and for the buyer/borrower to pay loan‑related doc stamps and the mortgage intangible tax. These are market norms, not laws, and parties can negotiate who pays what in the contract. Title companies and industry resources show the typical allocation seen on settlement statements, but your contract controls the final split common practice references and here.
How this affects your net sheet
- Sellers: Deed doc stamps come straight off your sale proceeds, along with commission, title charges, any credits, and county recording fees. Getting an early, written net sheet helps you set a clear plan for your next move.
- Buyers: Loan‑related doc stamps, the intangible tax, prepaid items, and lender/title fees shape your cash to close. A detailed estimate keeps your savings plan on track and avoids surprises.
How doc stamps are calculated
Florida law sets the rates and the rounding rules. For deeds, the tax is charged “per $100 or fraction thereof,” which means you round the price up to the next $100 before applying the rate. The county clerk follows this rule when collecting tax at recording per statute, the Florida Administrative Code, and Clerk guidance. For mortgages and notes, the documentary stamp rate applies the same “per $100” method, and the separate intangible tax applies at mills per dollar with no per‑$100 rounding per note/mortgage statute and the intangible tax statute.
- Deed doc stamps in Palm Beach County: calculated at the state deed rate on the rounded‑up purchase price per statute.
- Note or mortgage doc stamps: calculated at the state loan rate on the rounded‑up loan amount. Florida caps the doc stamp tax on promissory notes at a maximum amount by statute. That cap applies to notes. Recorded mortgages are taxed under the statute without the same cap language, so very large loans are handled per the mortgage statute and closing practice see the law on notes and mortgages.
- Nonrecurring intangible tax on mortgages: calculated as a flat mills‑per‑dollar rate times the mortgage amount per statute.
Sample calculations at common price points
Note: These examples are for illustration. Title companies and the Clerk will compute the exact figures for your specific contract, page counts, and payoffs.
Example 1: $600,000 sale price, 20% down, $480,000 mortgage
- Deed doc stamps: Apply the deed rate to $600,000 with per‑$100 rounding per statute.
- Mortgage doc stamps: Apply the loan rate to $480,000 with per‑$100 rounding per note statute.
- Intangible tax: Multiply $480,000 by the mills‑per‑dollar rate per statute.
Example 2: $875,500 sale price, 10% down, $787,950 mortgage
- Deed doc stamps: Round $875,500 up to the next $100 and apply the deed rate per FAC rounding rule and statute.
- Mortgage doc stamps: Round $787,950 up to the next $100 and apply the loan rate per statute.
- Intangible tax: Multiply $787,950 by the mills‑per‑dollar rate per statute.
Example 3: Cash purchase at $950,000
- Deed doc stamps: Apply the deed rate to $950,000 with per‑$100 rounding per statute.
- No loan, so no loan‑related doc stamps or intangible tax.
Example 4: Refinance of $1,000,000 loan amount
- No deed tax, since ownership is not changing.
- Mortgage doc stamps: Apply the loan rate to $1,000,000 with per‑$100 rounding per statute. Note that the statutory cap cited in the law applies to promissory notes. For recorded mortgages, practitioners follow the statute and closing guidance for large loans.
- Intangible tax: Multiply $1,000,000 by the mills‑per‑dollar rate per statute.
Where to find your exact figure
- Your title or closing agent will calculate doc stamps and the intangible tax, collect them at closing, and remit them to the Clerk with your recordings. The Palm Beach County Clerk also publishes recording fees and provides tools that help estimate costs per the Clerk.
- For self‑checks, use the statutory rules for rate and rounding, then confirm with your title company to avoid errors statute for deeds, notes/mortgages, and intangible tax.
Doc stamps within total closing costs
Doc stamps are only part of the picture. Your settlement statement will also include county recording fees, title charges, prepaid items, and possibly lender fees.
Related taxes buyers may see
- Loan‑related doc stamps and the nonrecurring intangible tax appear with the mortgage. These are separate from lender fees, title insurance premiums, and escrows. The documentary stamp tax and intangible tax are assessed under state law and collected at or around recording in Palm Beach County per statutes and here.
Line items sellers should expect
- Deed doc stamps are a primary seller closing expense in Palm Beach County. You may also see commission, title fees, estoppels or association charges, municipal lien searches, and county recording fees. The Clerk posts the base recording charges per page, which are separate from state taxes per the Clerk’s schedule.
Special cases and planning tips
Transfers tied to life events
Estate and probate sales, divorce settlements, or intra‑family transfers can change who signs which documents, which exemptions might apply, and what proofs are needed. Florida law recognizes certain exemptions in specific cases, but they are technical and documentation‑heavy. When these situations arise, your title company and counsel will guide you using the controlling statutes and Clerk procedures see statute framework and Clerk resources.
How to budget and avoid surprises
- Get a written net sheet or buyer cash‑to‑close estimate early, then update it once you pick a closing date and lender.
- Share draft contracts, payoffs, and HOA details with your closer so page counts and recording fees are accurate.
- If you are selling from an estate or trust, build in extra time for court or fiduciary approvals.
When to loop in your attorney or CPA
- Unusual consideration, entity transfers, or large‑loan structures can trigger special statutory rules. Florida’s law on notes includes a cap for doc stamps on promissory notes, while recorded mortgages are handled under separate language, so large loans merit a professional review per statute.
- If anyone suggests a structure aimed at “avoiding” taxes, pause and get legal and tax advice. The Department of Revenue can assess penalties and interest for underpayment. Florida law outlines penalty and interest schedules for unpaid documentary stamp tax per statute.
Next steps: personalize your closing‑cost plan
If you want calm, clear guidance for your next move, we will prepare a tailored net sheet or buyer cash‑to‑close plan and coordinate with your title company so numbers stay accurate from contract to close. For life transitions like probate or divorce, we will match the timeline to your legal process and keep everyone informed.
Ready to see exact numbers for your situation? Start your next chapter with a confidential consult from Kristy Holm. We will walk you through your options and create a closing plan that fits your goals.
FAQs
What are documentary stamp taxes in Florida?
- They are state excise taxes charged on deeds that transfer real estate and on notes or mortgages that evidence a loan. The Clerk collects them at recording under Florida law deeds and notes/mortgages.
Who usually pays doc stamps in Palm Beach County?
- Customarily, sellers pay the deed doc stamps and buyers pay the loan‑related doc stamps and intangible tax. Contract terms can change this split.
How are doc stamps calculated?
- Deeds and mortgages use a “per $100 or fraction thereof” method, which means you round up to the next $100 before applying the rate. The mortgage intangible tax is a separate mills‑per‑dollar calculation rate and rounding rules and statutes.
Where do doc stamps show up on my closing statement?
- On the ALTA or Closing Disclosure, you will see deed doc stamps on the seller side by custom, and loan doc stamps plus intangible tax on the buyer side. County recording fees appear as separate line items per Clerk schedule.
Are there exemptions?
- Some transfers have statutory exemptions, but the rules are strict and documentation is required. Ask your title company or attorney to review your facts under Florida law exemptions framework.
What happens if the tax is underpaid?
- Florida can assess penalties and interest for unpaid or late documentary stamp tax, with amounts set by statute penalties statute.
Do recording fees include doc stamps?
- No. Recording fees are county administrative charges per page. Doc stamps and the intangible tax are state taxes collected at recording and appear as separate items on your statement per the Clerk.
