The Quick Read: FHA cash-out doc stamps and intangible charges are two Florida state taxes, and a cash-out refinance triggers both. They are charged on the full new mortgage, not only on the cash you take out. They are government charges, not lender fees, and together they add roughly half a percent of the taxed amount. Because the FHA cash-out ceiling is 80% of the home’s value, these taxes come out of the same equity pool as everything else.
Key Terms Defined
Documentary stamp tax (“doc stamps”): A Florida tax on the mortgage and note, charged per $100 of the secured amount when the mortgage is recorded.
Nonrecurring intangible tax: A one-time Florida tax on the amount a mortgage secures, charged at 2 mills (0.2%) of that amount.
Secured amount: The full balance the new mortgage pledges against your home, including the payoff of your old loan.
Loan-to-value (LTV): The new loan balance divided by the home’s appraised value. FHA cash-out tops out at 80%.
Upfront mortgage insurance premium: The FHA premium of 1.75% of the base loan, which can be financed into the balance.
Closing Disclosure: The final itemized statement of your loan costs, which you receive before closing.
Why Does an FHA Cash-Out Trigger Both Taxes?
A cash-out refinance replaces your old mortgage with a brand-new note and a brand-new recorded mortgage. Florida taxes those documents. It does not matter that you already owned the home.
There is no deed tax in this picture. Ownership does not change. But the new mortgage is a new recorded lien, and that is what the state taxes.
Lendmire’s FHA cash-out refinance program is built around this structure. On the FHA files Lendmire arranges through wholesale lenders, cash-out reaches 80% LTV on a home you have owned and lived in for 12 months before the case number. Florida’s taxes are a layer on top of that national program. The program rules are the same in every state. The tax bill is Florida’s. Final terms depend on lender guidelines, property type, leverage, and the borrower’s complete credit picture.
Compare it with other paths:
| Transaction | New mortgage recorded? | Florida mortgage taxes? |
|---|---|---|
| FHA cash-out | Yes | Yes, on the full new balance |
| FHA rate-and-term (appraisal) | Yes | Yes, on the full new balance |
| FHA Streamline | Yes | Yes, but costs are handled differently |
| Second lien or equity line | Yes, for the new debt | Yes, on the new debt only |
The streamline is a useful contrast. It refinances an existing FHA loan with no appraisal and a limited credit review, but cash back is small. The state taxes still apply to the new mortgage. What changes is how the costs get paid.
How Are the Two Taxes Calculated?
Doc stamps are 35 cents per $100 of the secured amount, rounded up to the next $100. The intangible tax is 2 mills, which means multiplying the secured amount by 0.002, with no $100 rounding.
| Feature | Doc stamps | Intangible tax |
|---|---|---|
| Rate | $0.35 per $100 | 2 mills (0.002) |
| Base | Full secured amount | Full secured amount |
| Rounding | Up to next $100 | None |
| Statute chapter | Chapter 201 | Chapter 199 |
| Is there a cap? | Not on a recorded mortgage | Not on the amount secured |
The Florida Department of Revenue says mortgages and liens are taxable when filed and recorded in Florida, on the full amount of the indebtedness secured. The rate is 35 cents per $100 or portion thereof, and the department states there is no cap on the tax due. The intangible tax follows the same logic. The Department’s page on the nonrecurring intangible tax puts the rate at 2 mills, calculated by multiplying the obligation secured by Florida real property by 0.002.
Add the two rates together. The 0.35% and 0.20% total about 0.55% of the taxed amount. That is simple arithmetic from the published rates, not a state-published figure. Treat it as a planning shortcut and let the closing agent produce the exact numbers.
What Amount Actually Gets Taxed?
The tax base is the whole secured amount of the new mortgage. That includes the payoff of your old loan, the cash you take out, and any costs you finance. You are not taxed only on the cash in your hand.
This is the point that surprises people most. Say you owe 50% of your home’s value today and you take out another 10% in cash. The tax is not calculated on that 10%. It is calculated on the full new balance, which is far larger.
One honest gap: the state’s pages describe the tax on the “full amount of the indebtedness secured.” They do not walk through refinance payoffs line by line. Practitioners apply the rule to the full new note. Some Florida practitioners also describe credits in narrow cases where a recorded mortgage is modified rather than replaced. That rarely fits an FHA cash-out, which almost always means a new lender and a new recorded mortgage. Ask the closing agent to confirm the tax base in writing before you sign.
Does the financed mortgage insurance premium get taxed?
Probably, yes, if it is part of the recorded loan amount. FHA’s upfront premium is 1.75% of the base loan, and it can be financed. A financed premium raises the balance that the mortgage secures. A higher secured balance means a slightly higher tax. Whether the premium sits inside the exact figure the title agent taxes depends on how the note and mortgage are written. Ask for the tax calculation to be shown on the final loan amount, premium included.
How Do the 80% Ceiling and the Taxes Interact?
The ceiling applies to the whole loan, so taxes and other costs that you finance eat into your cash. HUD’s Mortgagee Letter 2019-11 cut the maximum LTV and CLTV on cash-out refinances to 80% of Adjusted Value, down from 85%. HUD said the change was meant to reduce risk to the FHA Insurance Fund. Some older web pages still show 85%, so skip those figures.
Here is the practical effect. The new loan must cover three things at once:
1. The payoff of your existing liens.
2. The cash you want.
3. Any costs you choose to finance, including the premium and these state taxes.
All three must fit under the 80% ceiling and under the county loan limit. County limits change every year, so check the current limit for your county. If you try to finance the taxes, the loan grows. A bigger loan means a slightly bigger tax. It is a loop, though a small one. The title agent solves it by working from the final loan amount.
A percentage walkthrough
Use these labeled, illustrative percentages of the home’s appraised value. They are not market data.
| Line | Share of appraised value |
|---|---|
| Maximum new loan (the ceiling) | 80.00% |
| Existing mortgage payoff | 55.00% |
| Room left under the ceiling | 25.00% |
| Florida taxes on an 80% loan (about 0.55%) | about 0.44% |
That leaves roughly 24.5% of value before the premium, appraisal and other closing costs come out. The upfront premium alone is 1.75% of the base loan. On an 80% loan that is about 1.4% of value. So the real cash to you shrinks by every layer.
Change the payoff to 70% and the room under the ceiling falls to 10%. Taxes stay about the same, because the whole loan is still taxed. That is why a small cash-out costs proportionally more than a large one.
Who Pays, and Where Does It Show Up?
The lender is technically the taxpayer for the intangible tax. It is allowed to pass the amount on to the borrower, and on a refinance it usually does. The doc stamps are paid at recording. The closing or title agent collects both from the closing funds and remits them.
On your paperwork, the charges generally appear under taxes and other government fees. The CFPB’s Loan Estimate rule separates recording fees from transfer taxes. Recording fees are not based on the sale price or loan amount. Transfer taxes are state and local government fees based on the loan amount or sales price. The rule also says the name used under state law does not decide which category applies.
Florida’s taxes are measured by the loan amount. That suggests they are generally disclosed as transfer taxes. That is a reasonable reading, not a statement from the CFPB about Florida. The county recording fee for filing the paperwork is a separate line and does not scale with your loan size.
When the Closing Disclosure arrives, compare it line by line with your Loan Estimate. Make sure the tax lines match the final loan amount.
Where the General Rule Breaks
Most FHA cash-outs follow the plain rule: new mortgage, full balance taxed, no cap. A few situations differ.
The cap misconception. Florida has a fixed dollar ceiling on doc stamps for written notes. People assume it covers their mortgage. It does not. The Department of Revenue states there is no cap on a recorded mortgage. On a large FHA loan that distinction is real money.
Maximum-lien language. If a mortgage limits what can be recovered to less than the note’s face amount, the tax can be calculated on that lower maximum. This is uncommon on FHA loans. Do not count on it. Ask the title agent whether it applies.
Mixed collateral. The intangible tax is never calculated on more than the fair market value of the Florida real property. If a debt is secured by property both inside and outside Florida, the tax may be prorated. Most FHA owner-occupied loans involve one home, so this seldom arises.
Unrecorded mortgage. If the mortgage is not recorded in a timely manner, the intangible tax is paid directly to the Department of Revenue rather than at recording. Your closing agent normally prevents this.
Miami-Dade. The county’s extra surtax and higher rate apply to deeds. A cash-out refinance involves no deed transfer, so they generally do not apply. If you are also changing who is on title, the deed has its own tax. Talk to a title attorney about that piece.
Occupancy. FHA cash-out is for your principal residence. If the home is a second home or a rental, occupancy decides the leverage and the program, and this loan is not the right fit.
What Decides Whether You Qualify First?
The taxes only matter if the loan works. Across the FHA files Lendmire arranges, three gates come first.
Ownership and occupancy. You must have owned and lived in the home for 12 months before the FHA case number is assigned.
Payment history. HUD’s Mortgagee Letter 2020-30 requires the lender to document that you made all payments on all your mortgages within the month due for the previous 12 months, or since obtaining the mortgages if less. Homes owned free and clear can still be refinanced as cash-out. A late payment inside that window can pause the loan until the history clears.
Credit and ratios. The wholesale programs Lendmire works with start at a decision score of 580. Ratios begin at a 31/43 base pair, and documented compensating factors can reach 40/50 at the top tier. The automated finding governs most files. Some lenders set a higher credit floor than the program minimum, so one lender’s answer is not every lender’s. All of this is subject to lender guidelines and full file review.
Common Mistakes
- Assuming the tax is only on the cash out. It is on the whole new mortgage.
- Confusing the two taxes. They sit in different chapters of Florida law, have different rates, and round differently.
- Calling them lender fees. They are state taxes. Lenders do not keep them.
- Reading 80% as an approval amount. It is a ceiling. Credit, income, payment history and the appraisal also decide the result.
- Quoting the old 85% limit. It is outdated.
- Skipping the Loan Estimate comparison. A mismatch between the estimate and the final figures is easiest to fix before closing.
Pre-Closing Checklist
1. Ask the title agent for the doc stamp and intangible tax calculation on the final loan amount.
2. Confirm whether the financed premium is inside the taxed figure.
3. Check that the tax lines on the Closing Disclosure match your Loan Estimate.
4. Confirm that the home is the only collateral and entirely in Florida.
5. Ask whether any recording-limit language or modification exception applies.
6. Compare your net cash against the headline equity number you started with.
Frequently Asked Questions
Do I owe Florida doc stamps and intangible tax on an FHA cash-out refinance?
Yes, in most cases. A cash-out creates a new note and a new recorded mortgage, and Florida taxes both on the secured amount. Deeds are a separate matter and are not part of a standard cash-out.
Are these taxes charged only on the cash I take out?
No. The base is the full amount the new mortgage secures, which includes the payoff of your old loan. The state’s published language refers to the full amount of the indebtedness secured. Ask the closing agent to confirm the base on your specific file.
Can I roll the taxes into the loan?
Often yes, as long as the total stays under the 80% ceiling and the county loan limit. Financing them raises the balance a little, which raises the tax a little. Rolling costs in also reduces the cash you receive.
Is there a cap on doc stamps for a mortgage?
No. The fixed dollar cap applies to written notes, not to a recorded mortgage, according to the Department of Revenue. Do not assume your mortgage tax stops at that ceiling.
Does a streamline avoid these taxes?
No. A streamline still records a new mortgage, so the state taxes apply. The difference is in how costs are handled and how little cash comes back.
What to Do Next
Decide what the cash is for, then compare it with the true net proceeds after the taxes, the premium and the other closing costs. If you are weighing a cash-out refinance against keeping the loan you have, Lendmire can help you compare the programs and the equity each one reaches.
For your own numbers, request a scenario review with Lendmire.
About Lendmire
Lendmire — NMLS# 2371349 — is a mortgage broker that arranges FHA, VA, conventional and jumbo home purchase and refinance financing in 16 states through wholesale lenders. Every option 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. Florida Department of Revenue, Documentary Stamp Tax
2. Florida Department of Revenue, Nonrecurring Intangible Tax
3. HUD Mortgagee Letter 2019-11
4. CFPB Regulation Z, Loan Estimate content
5. HUD Mortgagee Letter 2020-30
This article is part of Lendmire’s FHA Loan series — every loan program’s qualification details, guidelines, and scenarios live on the loan options page.
Related reading: Can You Get an FHA Cash-Out Refinance Within a Year of Buying? · Can a Homeowner Consolidate Debt With an FHA Cash-Out Refinance? · Is an FHA Cash-Out Easier to Qualify for Than a Conventional Cash-Out?
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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Legal disclosures. Lendmire (NMLS# 2371349) is a state-licensed mortgage brokerage that arranges financing through wholesale lender relationships. Lendmire is not a direct lender, depository institution, or registered financial advisor. The discussion above is general informational content about real estate financing — it is not financial, legal, or tax advice, and readers should consult licensed professionals for guidance on their individual circumstances. Loan inquiries are subject to lender underwriting; this article does not represent a commitment to lend. Loan terms, rates, and qualification standards vary by borrower, property, and state, and are subject to change at any time. Equal Housing Opportunity. NMLS Consumer Access: nmlsconsumeraccess.org.