The Quick Read: In states that tax recorded mortgages, the recordation charge on a home equity line is set by your state and county and measured on the credit limit, not on what you draw, so it rises in a straight line with line size. Everywhere else, you pay only a small flat recording fee.
- Only a handful of states plus Washington, D.C. tax the act of recording a lien. Elsewhere the charge is a flat fee that does not grow with the line.
- Where a tax applies, it is usually a rate per $100 (or per $500) of the secured amount. On a credit line, that amount is generally the limit.
- County differences are real in some states, such as Virginia, New York and Maryland. In Florida the rates are the same statewide.
- The tax is set by statute. A lender cannot waive it, and drawing less does not shrink it.
Why There Is No Single Number for a HELOC by Loan Amount and County
No national table exists, because the charge is not a national charge. Three different structures sit behind the words “recording cost,” and your state decides which one you get.
How large a line the equity supports.
An equity line is sized by combined loan-to-value, occupancy, and credit — not by rental coverage. Switch the occupancy or the credit band and the ceiling moves with it.
Investment-property lines require a 700 minimum credit score; second-home lines start at a 640 minimum and primary-residence lines at 600, and the combined-LTV ceiling steps down as the credit band drops on primary-residence and second-home lines and holds on investment-property lines; the line cap steps down on primary-residence lines and holds at every tier on investment-property and second-home lines.
A debt-to-income ratio above 45% requires 680+ credit. Profiles under 640 are limited to single-family homes. At least 75% of the approved line is drawn at closing. Ceilings, floors, and caps update from Lendmire’s centralized guideline source.
Line estimate
Illustrative estimate only — not a quote, Loan Estimate, approval, or commitment to lend. The rate is an editable assumption; equity-line pricing is variable through both the draw and repayment periods and never converts to fixed. Occupancy and credit drive the ceiling together: an investment property tops out at 70% combined LTV (minimum credit 700, line cap $500,000); a second home tops out at 90% combined LTV (minimum credit 640, line cap $500,000), with the ceiling stepping down as the credit band drops (the cap holds at every tier); a primary residence tops out at 90% combined LTV (minimum credit 600), and its $750,000 maximum line is available only at 75% combined LTV or below with a 700-or-better credit profile (720 on the longer-runway program) and a full appraisal. Lines above $500,000 require a full appraisal. Credit, debt-to-income, property type, and full underwriting review all affect the final line.
The first is a flat recording fee paid to the county recorder or clerk for indexing the document. It does not change with loan size. Experian’s explainer on home equity closing costs puts the loan recording fee at roughly $15 to $50, and other consumer sources run higher. That is a market-wide range, so treat it as a ballpark.
The second is a percentage tax on the secured amount. You may see it called a recordation tax, mortgage recording tax, documentary stamp tax or intangible tax. This is the charge that scales with your line.
The third is a local add-on. Some counties or cities stack their own percentage on top of the state’s.
The set of states that tax mortgages differs depending on how a source defines “mortgage tax.” Florida, New York, Maryland, Virginia, Georgia, Tennessee, Alabama, Kansas, Minnesota, Oklahoma and D.C. are commonly named, though a given source may include or omit some of them. Verify your own state before budgeting, and never assume a number from a different one.
Here is how the three structures compare.
| Charge type | Scales with line size? | Varies by county? |
|---|---|---|
| Flat recording fee | No | Yes, by clerk |
| State percentage tax | Yes | Sometimes |
| Local add-on tax | Yes | Yes, by design |
Key Terms Defined
HELOC: A home equity line of credit, a revolving line secured by a lien on real estate that you can draw on up to a set limit.
CLTV (combined loan-to-value): All loans secured by the property, added together and divided by its value.
Recordation tax: A percentage-based government charge for recording a lien. It is separate from the flat fee the clerk charges to index the document.
Secured amount: The dollar figure stated in the recorded lien document. On a credit line, this is generally the limit, not the balance.
Draw: Money you actually take from the line. A “draw period” is the stretch of years in which you can take it.
Business-purpose loan: A loan made to buy or hold property for investment rather than to live in it. DSCR loans fall in this category, which is why they are reviewed differently from a standard owner-occupied mortgage.
The Charge Follows the Limit, Not the Draw
Here is the point most borrowers miss. A mortgage tax is a cost of creating the lien, and the lien secures the whole line. You pay for the amount the instrument secures, whether or not you ever touch the money.
Florida is the clearest case. Its documentary stamp tax on a recorded mortgage is $0.35 per $100 of the amount secured, and the base includes debt that is contingent, which covers undrawn credit. Florida also adds a one-time intangible tax of $0.20 per $100 on obligations secured by a mortgage on Florida real property, according to Barnes Walker’s guide to Florida documentary stamp tax. Together that is $0.55 per $100 of the limit.
So the practical rule for sizing a line in a mortgage-tax state is simple. Every extra dollar of limit carries a tax, even if you plan to leave it idle as a safety cushion.
There is a mitigating fact on the investment side of the network. On an investment-property line, at least 75% of the line is drawn at closing. The gap between “limit” and “drawn” is therefore small on these files, and the draw-versus-limit question matters less than it would on a primary-residence line that sits mostly unused.
Step by Step: How the Charge Gets Calculated
Here is the sequence on a typical file.
1. The lien document is drafted for a stated amount. On a credit line, that is the limit. How the instrument is drafted can change the tax base, so ask the title agent what number will appear on it.
2. The taxing authority applies its base. In most places, this is the amount secured.
3. Rounding rules apply. Florida rounds up to each $100. Maryland treats any fraction of $500 as a full $500 increment.
4. The county clerk or recorder collects the tax at recording, in the county where the property sits.
5. The cost appears on the settlement statement. The title or closing agent usually itemizes it as a recording or transfer-tax line.
6. Later events may add tax. Whether a later draw, increase or modification triggers more tax varies by state, so ask before you assume a one-time charge.
Four things decide the final number: your state and county, the secured amount, the property type, and whether the lien is a first lien, a second lien or a refinance with a credit. Occupancy-based exemptions do exist. They are generally written for owner-occupants, so a rental investor should not count on them.
What It Looks Like at Three Line Sizes
The investment-property HELOC lines in Lendmire’s wholesale network cap at $500,000 total, so a ladder up to that size covers every investor file. The table shows the modeled arithmetic using the statutory rates described here. It is a state-level illustration, not a quote, and it leaves out the flat clerk fee and any local add-on.
| Line size | Florida (doc stamps + intangible) | Virginia (state tax only) |
|---|---|---|
| $100,000 | about $550 | $250 |
| $250,000 | about $1,375 | $625 |
| $500,000 | about $2,750 | $1,250 |
Florida’s figures combine $0.35 and $0.20 per $100. Virginia’s state tax is 25 cents per $100 of the amount secured, per Virginia Code § 58.1-803, and the statute applies it to each $100 or portion thereof.
The pattern is a straight line with no cliff. Each additional $100,000 of limit adds about $550 in Florida and $250 in Virginia’s state tax. A line that is $50,000 smaller does not skip a bracket. It just costs proportionally less.
Where County Lines Matter
Counties change the answer in some states and not in others. The state summaries below describe how each state’s tax law works. They are not a statement of where Lendmire brokers HELOCs; that list of 16 states appears in the next section, and New York and Maryland are not on it.
Florida. The rates are uniform across all counties. The only county-level difference is the clerk’s flat recording fee.
Virginia. The state tax is the same everywhere, but localities can add their own layer on top. That local layer is where Virginia’s county differences come from. The state tax applies to the amount secured by the property, and the clerk collects it where the instrument is first recorded. Refinanced deeds of trust can qualify for a lower schedule, and supplemental or modifying instruments are taxed only on the added amount.
New York. This is where “by county” is most real. As a statute illustration only, the state’s tax agency publishes a mortgage recording tax page listing a basic tax of 50 cents per $100, a special additional tax of 25 cents per $100, and an additional tax of 25 cents per $100 (30 cents inside the commuter transportation district). A city or county tax of 25 to 50 cents per $100 applies where one exists.
For property principally improved by a one- or two-family dwelling, the first $10,000 is deducted when computing the additional tax. In New York City, a building of four or more units falls in a higher tier than a one-to-three family home. That matters to anyone holding a small apartment building.
Maryland. The tax is set by statute, but each county chooses its rate, expressed per $500 or fraction of $500 of debt secured. Ballard Spahr’s overview of transfer and recordation tax in the DMV area describes that county-by-county structure and notes that Montgomery County moved to a tiered, higher structure. The state’s transfer tax does not apply to mortgages.
Maryland’s owner-occupant exemptions are tied to occupancy, so a rental generally will not qualify. For a deeper look at the Maryland case, see Lendmire’s piece How Much Maryland Recordation Charges Add to an Out-of-State Rental HELOC.
Tennessee and Georgia. Both tax recorded mortgages. Tennessee collects through the county Register of Deeds, and Georgia’s intangible tax is based on the loan amount. Pricing and available terms vary by lender, borrower profile, property type, and full underwriting review.
For a broader side-by-side, Lendmire’s breakdown of recordation charges on a rental HELOC county by county covers more jurisdictions.
Where the General Rule Breaks
The “limit, not draw” rule bends in several places.
- A limit set above the line. If the instrument secures more than the approved line, a tax keyed to the secured amount can rise with it. Ask what number the lien document will carry.
- Refinances and modifications. Some states give credits on refinances or tax only the added amount on a modification. A cash-out refinance of a rental can cost more recording tax than a line if the new first lien is large and the state taxes the whole new amount. Others soften it. The answer depends on the state.
- Property in more than one locality. New York requires an apportionment form where property sits in more than one taxing area with different rates.
- Owner-occupant exemptions. Maryland’s exemptions for owner-occupied homes require occupancy affidavits. Do not plan around them on a rental.
- Large commercial structures. Maryland changed how indemnity deeds of trust are taxed with a high exemption threshold. That is a commercial structure, not a residential line shortcut.
- Late payment. Unpaid tax can draw penalties and interest. Use the closing agent so it is paid at recording.
A broker’s pattern from watching many files: investors budget the interest cost of a line carefully and forget the one-time recording line until the settlement statement shows it. In a mortgage-tax state, it is a fixed day-one cost sized to the whole line, and it matters most on short-term uses such as bridge money for a purchase or rehab.
Cost is also not negotiable the way lender fees are. It is set by statute, and a lender cannot waive it. A “no-closing-cost” line may absorb it, but that usually comes with an early-closure clause or other tradeoff, so read the terms.
HELOC or DSCR Cash-Out for a Rental?
The recording tax is only one input. The bigger decision is whether a HELOC fits a rental at all. Here is what the network’s investment-property line looks like, subject to lender guidelines and full file review.
- Leverage: 70% CLTV on an investment property, with a 700 minimum credit profile.
- Size: $25,000 to $500,000. Lines above $500,000 are available only on a primary residence.
- Structure: a 5-year interest-only draw followed by a 25-year repayment period.
- Title: held by you individually or in a revocable living trust. LLCs, corporations and partnerships cannot hold title.
- Availability: Lendmire brokers these lines in 16 states: AL, CA, CO, FL, GA, IN, MI, MT, NM, NC, OH, PA, TN, TX, VA and WA. Maryland and New York are not on that list, even though they appear in the tax examples above.
If your rental sits in an LLC, or you need more than $500,000, the HELOC is likely the wrong tool. A DSCR cash-out refinance is the usual alternative. It qualifies primarily on property-level rental income covering the payment, subject to lender guidelines, and it can be held in an LLC, subject to program terms.
Across the wholesale network, cash-out tops out around 75% LTV on a standard rental, and about 6 months of seasoning is the common expectation. Loan sizes run up to $3,000,000 on standard programs (smaller balances available through select lenders). Coverage of 1.00 is where many select programs start, while a separate select-lender path goes below 1.00 with leverage and terms adjusted. Clearing 1.00 does not mean positive cash flow, because repairs, vacancy and management sit outside the calculation. Every figure here varies by lender and program — guidelines, property type, leverage, and credit profile all apply.
Recording tax on a cash-out refinance depends on how the state treats a new first lien. In a state with no mortgage tax, the recording line is small either way. In a mortgage-tax state, compare the tax on the new first lien against the tax on the line alone.
For the full picture, Lendmire’s complete DSCR loans guide covers how these loans work. Tax treatment can depend on how the funds are used and how the property is held. Keep clear records and speak with a qualified tax professional before relying on any deduction.
How to Find Your County’s Exact Number
Four steps get you a real figure.
1. Name the property’s county and state to the title or closing agent, not the lender’s office location.
2. Ask which taxes apply to a recorded line in that county. Ask for the tax and the flat fee as separate numbers.
3. Ask what amount will be stated on the lien document. That number is your tax base.
4. Ask about later draws, increases and modifications. Find out whether any of them trigger more tax.
Request the answers in writing and compare them with your settlement statement. If the line items differ from what you were told, ask before you sign.
Frequently Asked Questions
Is a HELOC recordation charge based on what I borrow or on my credit limit?
Usually the limit. Where a mortgage tax applies, it is measured on the amount secured by the lien, and on a credit line that is generally the full limit. Florida’s documentary stamp base explicitly includes contingent debt. On the network’s investment lines, at least 75% of the line is drawn at closing, so the gap is small.
Do all states charge recordation tax on a HELOC?
No. Only a handful of states plus D.C. tax recorded mortgages, and the exact list depends on how a source defines the tax. Most states charge only a flat recording fee, typically tens to low hundreds of dollars.
Does the charge change by county?
In some states. Virginia and New York let localities add their own layer, and Maryland sets rates county by county. Florida’s tax rates are the same in every county, with only the clerk’s flat fee varying.
Can an owner-occupant exemption lower the charge on my rental?
Generally no. Maryland’s exemptions, for example, are tied to owner-occupancy and require an affidavit. Do not count on one for an investment property.
Is the recording tax cheaper on a HELOC or on a cash-out refinance?
It depends on the state. A HELOC taxes only the new line. A refinance taxes the new first-lien amount, though some states, such as Virginia, offer a lower schedule on refinances. Get both figures from the closing agent before choosing.
If you are considering a home equity line and want to see how the numbers work, Lendmire can help you compare HELOC options based on the property, the equity available, credit profile, combined leverage, and your goals.
Whatever line size you land on, the cleanest budget starts with one question to the title agent: what amount will the recorded lien actually say?
About Lendmire
Lendmire — NMLS# 2371349 — is a mortgage broker that arranges home equity lines of credit in its 16 full-service states through wholesale lenders, on primary residences, second homes and investment properties. Every line is subject to the lender’s guidelines and full underwriting. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
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References
1. Experian, Home equity loan and HELOC closing costs
2. Barnes Walker, Florida documentary stamp tax
3. Virginia Code, Title 58.1, Chapter 8 (§ 58.1-803)
4. New York State tax agency, Mortgage recording tax
5. Ballard Spahr, Navigating transfer tax and mortgage recordation tax in the DMV area
This article is part of Lendmire’s home equity line of credit program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: How Much Recordation Charges Add to a Rental HELOC by County · How Much Recording Costs Add to a Bank Statement HELOC by Loan Amount · How Much Recordation Cost a DSCR Cash-Out Carries by County
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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Important disclosures. Lendmire (NMLS# 2371349) is a licensed mortgage brokerage. Lendmire is not a direct lender, depository institution, or financial advisor. All loan inquiries are subject to lender underwriting; this article does not constitute a commitment to lend. Rates, terms, and program guidelines are subject to change without notice and vary by borrower profile, property type, and state. Information in this article is general in nature and is not financial, legal, or tax advice. Equal Housing Opportunity. NMLS Consumer Access: nmlsconsumeraccess.org.