Planning a closing in Palm Beach and hearing about “doc stamps” and the “intangible tax”? You are not alone. These Florida taxes show up on most closing statements and can change your bottom line if you do not plan for them. In this guide, you will learn what each tax is, how to calculate your exact amount, who typically pays in Palm Beach County, and how to compare offers with confidence. Let’s dive in.
What these taxes are
Florida charges two main taxes that show up at closing:
- Documentary stamp tax on the deed. This is a state tax on the consideration paid to transfer property by deed.
- Documentary stamp tax on the promissory note. This applies when a borrower signs a note for a new mortgage.
- Nonrecurring intangible tax on mortgages. This is a one-time tax on the principal balance of a recorded mortgage.
These are state-mandated and collected at closing. Title companies or the Palm Beach County Clerk & Comptroller collect and remit the amounts when documents are recorded.
Current rates you can use
- Doc stamps on the deed: 0.70% of consideration (multiply by 0.007).
- Doc stamps on the note: 0.35% of the loan amount (multiply by 0.0035).
- Nonrecurring intangible tax: 0.20% of the loan amount (multiply by 0.002).
Exact cents can vary slightly due to rounding rules at the clerk’s office. Confirm final figures with your title company, lender, or the Palm Beach County Clerk & Comptroller before closing.
Who usually pays in Palm Beach
Local custom in Florida often follows this split:
- Seller typically pays the documentary stamp tax on the deed.
- Buyer (borrower) typically pays the documentary stamp tax on the note and the nonrecurring intangible tax on the mortgage.
This is custom, not law. Your contract controls who pays. You can negotiate credits or reallocate costs to make your offer more competitive or to protect your net.
How to calculate your costs
Use these simple formulas when you review offers or build your estimate:
- Doc stamps on deed = sale consideration × 0.007
- If the buyer assumes a mortgage, add the assumed balance to the consideration: (sale price + assumed mortgage) × 0.007
- Doc stamps on promissory note = loan amount × 0.0035
- Nonrecurring intangible tax = loan amount × 0.002
Keep calculations to the original principal of the loan amount for the note stamps and intangible tax. If there are multiple notes or mortgages, calculate each separately as applicable.
Worked examples
Example A: Financed purchase
- Sale price: 500,000 dollars
- New mortgage: 400,000 dollars (80% loan-to-value)
- Seller pays deed doc stamps (customary): 500,000 × 0.007 = 3,500 dollars
- Buyer pays note stamps and intangible tax:
- Note stamps: 400,000 × 0.0035 = 1,400 dollars
- Intangible tax: 400,000 × 0.002 = 800 dollars
- Buyer’s combined mortgage-related taxes: 2,200 dollars
Example B: Cash purchase
- Sale price: 500,000 dollars
- No new mortgage
- Seller pays deed doc stamps (customary): 500,000 × 0.007 = 3,500 dollars
- Buyer has no note stamps or intangible tax unless a mortgage is recorded later
Simple seller net comparison
- Offer 1: Cash 500,000 dollars
- Seller pays deed doc stamps: 3,500 dollars
- Seller’s gross-to-net before other costs: 496,500 dollars
- Offer 2: Financed 500,000 dollars with 400,000 dollars loan
- Seller still typically pays the same deed doc stamps: 3,500 dollars
- Buyer covers the mortgage taxes. Seller net is unchanged unless negotiated otherwise
Cash vs. financed buyers
If you buy with cash, you avoid the note stamp and intangible tax. The deed stamp still applies based on the consideration for the deed, which the seller typically pays in local practice. If you finance, you should plan for both the documentary stamp on the note and the intangible tax at closing.
Assumptions, credits, and negotiations
Because these taxes are set by state law but paid by agreement, use your contract to shape the economics:
- Seller credits. If a seller offers a credit, confirm the lender will allow it and how it affects your cash-to-close. Credits do not directly change the tax rates, but they may impact how much you actually bring to closing.
- Assumed mortgages. If a buyer assumes an existing loan or takes title subject to an existing mortgage, that outstanding balance is usually included in the deed’s consideration. That can increase the deed doc stamp amount. Account for this early to avoid surprises.
- Multiple notes. If you structure seller financing or have split notes, each written obligation can trigger note stamps, and each mortgage can trigger intangible tax. Work with your title company to compute the total correctly.
Exemptions and special cases
Certain transfers and loans may be exempt from one or more of these taxes. Common examples include some transfers to government entities, some spousal transfers, and specific statutory exemptions for certain mortgages. Exemptions are very fact-specific and require proper documentation. If you believe your transaction might qualify, coordinate with your title company and confirm the latest guidance from the Florida Department of Revenue and the Palm Beach County Clerk & Comptroller.
Where these appear on your disclosures
In a financed purchase, you will usually see two separate buyer-side line items for the mortgage-related taxes on the Closing Disclosure:
- Documentary stamp tax on the promissory note
- Nonrecurring intangible tax on the mortgage
The deed doc stamp typically appears on the seller’s side of the settlement statement in Palm Beach County, unless you negotiated otherwise.
Quick net-sheet checklist
Use this compact framework when you evaluate offers or prep for closing. Fill in your numbers to compare scenarios.
Seller-side
- Contract sale price: ________
- Deed doc stamps: sale price × 0.007 = ________
- Other seller costs: commission, payoffs, title or owner’s policy if applicable, recording release fees, prorations
- Estimated seller net before other costs: sale price − deed doc stamps − other seller costs
Buyer-side (financed)
- Loan amount: ________
- Note stamps: loan amount × 0.0035 = ________
- Intangible tax: loan amount × 0.002 = ________
- Other buyer costs: mortgage recording fee, lender fees, prepaids, escrows, title and policies
- Estimated cash to close: down payment + buyer closing costs
Buyer-side (cash)
- Sale price: ________
- Mortgage-related taxes: typically none without a new mortgage
- Other buyer costs: recording fee for deed, title and policies, prepaids if applicable
Common gotchas to avoid
- Ignoring assumptions. If a buyer assumes a mortgage, add the assumed debt to your deed stamp calculation.
- Overlooking multiple instruments. More than one note or mortgage can increase the total taxes due.
- Forgetting rounding. Clerks apply rounding rules that can change the amount by a small margin. Expect minor differences.
- Mixing taxes with fees. Recording fees, title charges, and lender fees are separate from these taxes and vary by document count and page length.
How to verify your numbers
Before you finalize negotiations or sign, verify amounts with:
- Your title company or closing attorney for exact calculations and rounding
- Your lender for allowable credits and the final Closing Disclosure
- The Palm Beach County Clerk & Comptroller for local recording procedures and fees
- The Florida Department of Revenue for current rates and exemptions
A quick confirmation can prevent last-minute surprises and help you write a cleaner offer.
Final thoughts
Documentary stamps and the intangible tax are predictable once you know the rules. With the right formulas and a clear net-sheet, you can compare cash and financed offers, decide who pays which lines, and protect your bottom line. If you are selling a luxury condo or buying a seasonal home in Palm Beach, clarity on these taxes helps you move with confidence.
Ready to plan your Palm Beach move with a data-informed approach? Connect with ARIA Properties for expert representation across Florida’s coastal markets and get your instant home valuation.
FAQs
What are Florida doc stamps and the intangible tax?
- They are state taxes charged at closing: doc stamps apply to deeds and to promissory notes, and the nonrecurring intangible tax applies to recorded mortgages.
Who usually pays these taxes in Palm Beach County?
- Customarily, sellers pay the deed doc stamps, and buyers pay the note stamps and the intangible tax. The contract can change this allocation.
How do I calculate my deed documentary stamp tax?
- Multiply the total consideration by 0.007. If a mortgage is assumed, add that balance to the sale price before multiplying.
Do cash buyers pay the note stamp or intangible tax?
- No, not when no new mortgage is recorded. The deed doc stamp still applies to the transfer, which sellers typically cover in local practice.
How are doc stamps calculated if a buyer assumes a mortgage?
- Add the assumed mortgage balance to the sale price to get the consideration, then multiply by 0.007 for the deed doc stamps.
Are there exemptions for family transfers or government-related sales?
- Some transfers and certain mortgages may be exempt. Exemptions are specific and require proper documentation. Confirm with your title company and the Florida Department of Revenue.
Where will these taxes show on my closing paperwork?
- On a financed purchase, the borrower’s Closing Disclosure usually lists note stamps and intangible tax on the buyer side, while the deed doc stamps appear on the seller’s settlement statement.
How can I verify the exact amount before closing?
- Ask your title company to run the calculation, review your lender’s Closing Disclosure, and confirm procedures with the Palm Beach County Clerk & Comptroller and the Florida Department of Revenue.
