The Quick Read: Yes. In Florida, the state taxes the entire new mortgage, not just the cash you take out. The old balance you pay off still counts. A narrow same-lender “renewal” exception can limit the tax to new money, but it rarely fits a full cash-out loan.
That answer surprises people. You already owe most of that money, so it feels wrong to be taxed on it again. The reason is simple, and the exceptions are narrower than they look.
Why Does the Whole Loan Get Taxed?
Because a refinance creates a brand-new loan. You sign a new promissory note and a new mortgage, and the old ones are paid off and retired. In Florida, the mortgage is the document that gets recorded with the county clerk, and it is the document the state taxes.
Florida’s Department of Revenue says the tax on a recorded mortgage is based on the full amount of debt the mortgage secures. The rate is 35 cents per $100 or portion thereof. The same page says there is no cap on the tax due on a mortgage.
Notice what is missing from that rule: anything about how much of the new loan is cash to you. The payoff of your old loan does not shrink the base. A new loan of a given size is taxed at that size.
There is no deed tax on a refinance, because ownership does not change. That is a separate tax tied to a transfer of the property. Mortgage-side taxes still apply because the mortgage is new.
What Are the Two Florida Taxes, and What Else Shows Up?
Two different state taxes hit a Florida mortgage. People lump them together, but they have different names, bases, and exemption rules. A third charge, the clerk’s filing fee, is not a tax on the loan at all.
| Charge | What it is based on | Who is the taxpayer |
|---|---|---|
| Documentary stamp tax | Full amount the mortgage secures | Paid by the borrower in practice |
| Nonrecurring intangible tax | Full amount secured by Florida property | Lender, who may pass it on |
| Clerk’s recording fee | Filing the documents | Borrower, as a closing cost |
The intangible tax is two mills, which means 0.002 times the secured amount. It is paid once, when the mortgage is recorded. The Department of Revenue says the lender is the legal taxpayer but may pass the cost to the borrower, and on most files it shows up as a borrower line item.
Both are one-time costs. Neither is your annual property tax, and neither repeats each year.
One more detail. The $2,450 cap you may have heard about applies to notes and similar written promises to pay. It does not apply to mortgages. People who find that number online often assume it protects a big cash-out loan. It does not.
How the Math Works, Without Dollar Figures
Doc stamps follow a simple recipe. Take the new loan amount, divide by $100, round up to the next whole number, and multiply by 35 cents. The intangible tax is the same loan amount times 0.002.
Now picture a homeowner whose current loan is 50% of the home’s value. They refinance into a new loan at 75% of value and take the difference as cash. The tax base is the 75% loan. The cash they receive is only the other 25% of value.
Look at the proportions. Two-thirds of the amount being taxed is old debt. The tax cost per dollar of cash received is therefore much higher than the prevailing pricing suggests. That is the part most borrowers never see coming.
A refinance works the same way. It swaps one loan for another without meaningful cash back. The tax base is still the full new loan, which is why a refinance that saves money on the loan still carries these closing costs.
Can You Avoid It? The Same-Lender Renewal Exception
Sometimes, in a narrow case. Florida law treats a “renewal” of an existing loan differently from a new loan. A recent Florida First District Court of Appeal opinion says refinanced home loans may be exempt from both taxes to the extent the lender provides no new money.
Here is how that plays out in practice:
- Same lender, no new money. The balance rolled over may qualify as a renewal and escape the tax.
- Any new money added. The extra amount is taxed. Cash back and any financed closing costs count as new money.
- A different lender paying off your loan. The renewal exemption generally does not apply.
Apply that to a full cash-out refinance. The cash you take out is new money, so it stays taxable. At best, only the rolled-over balance could be exempt, and only if the transaction is structured to meet the statute. That includes paperwork showing the tax was paid on the original note.
Treat that decision as a recent appellate ruling, not as settled statewide practice. This was a case between a bank and the Department of Revenue, and it speaks to lenders more than to homeowners. Most cash-out loans placed through wholesale lenders, which is how Lendmire arranges them, involve a new lender. In that setup, you should plan on the tax applying to the whole loan.
Here is a quick test for whether the exception could help you:
1. Is the new lender the same as the current lender?
2. Does the new loan avoid adding any new money?
3. Can the structure be documented the way the statute requires?
A full cash-out refinance fails the second question by definition.
Does the Loan Program Change the Tax?
No. The loan program decides how much you can borrow and how much cash you can take. It does not exempt you from Florida’s mortgage taxes. The tax follows the recorded mortgage.
This matters for the streamline programs too. FHA Streamline and VA IRRRL are for people who already hold an FHA or VA loan and want a simpler refinance. Both are designed for rate-and-term changes, not for pulling out equity. Both still create a new recorded mortgage, so the Florida tax question still comes up. “Streamline” describes the underwriting, not the tax.
Occupancy works the same way. Florida does not tax a rental differently from a home you live in; the tax follows the loan amount. Occupancy matters for leverage, not for the tax. The loan limits below are for a home you live in.
| Refinance type | Tax base | Old balance counted? |
|---|---|---|
| Full cash-out | Whole new loan | Yes |
| Rate-and-term | Whole new loan | Yes |
| FHA Streamline / VA IRRRL | Whole new loan | Yes |
| Same-lender renewal | New money only | Only if it qualifies |
What a Full Cash-Out Refinance Looks Like on Your Equity
The tax cuts into the equity you can reach, so the program limits matter. Across the wholesale programs Lendmire places files with, a conventional cash-out refinance on a one-unit principal residence typically tops out at 80% loan-to-value. LTV is the new loan as a percentage of your home’s appraised value. On two- to four-unit properties, the cap is 75%. The Fannie Mae eligibility matrix publishes the same limits for the agency’s loans.
A few other guidelines shape who qualifies, subject to lender guidelines and full file review:
- Seasoning. The first mortgage being paid off generally must be at least 12 months old, counted from note date to note date. At least one borrower must have been on title for six months. There are exceptions for delayed financing, inheritance, and legal awards.
- Credit and ratios. Wholesale conventional programs generally start at a 620 decision score, with a total debt-to-income ceiling of 50% on most automated approvals.
- A higher-leverage lane. One wholesale program reaches 89.99% LTV with no mortgage insurance. It requires a 680 score, a 50% ratio, a 30-year fixed rate, a primary residence, a conforming balance, and its own six months of seasoning. It is not available everywhere.
Compare that with a rate-and-term refinance, which on a one-unit principal residence can reach 95% LTV. The new loan pays off the existing first mortgage and closing costs, with only incidental cash back. Fannie Mae’s Selling Guide describes this limited cash-out category. Above 80% LTV, mortgage insurance applies. It can be cancelled at 80% of original value if you request it with a good payment history. The servicer must end it automatically at 78%.
Our cash-out refinance programs page lays out how those leverage tiers compare. The point for this article is simpler: the tax comes out of your usable equity either way.
Who Pays, and How Does It Show Up at Closing?
You do, in practice. Both taxes are collected at closing and paid when the mortgage is recorded with the county. Your Loan Estimate shows them early, and the Closing Disclosure shows the final amounts. They typically appear under taxes and other government fees, separate from the lender’s own charges and the clerk’s filing fee.
On a refinance, you generally have two ways to handle these costs. You can pay them from cash you bring, or they can be built into the new loan balance or covered from your proceeds. Either way, the balance counts against the LTV cap. On a cash-out, that means closing costs, including these taxes, reduce the cash you actually walk away with.
A bigger balance also means a higher payment, but the taxes themselves are one-time. They do not recur. Tax treatment can depend on your situation; borrowers should speak with a qualified tax professional before relying on any deduction or credit.
Mistakes at closing matter. If the amounts are wrong, the county can reject the recording and stall the closing. Ask your closing agent to show how the tax was computed.
Common Myths
“Doc stamps only apply to the cash I take out.” The default is the full secured amount. Only a qualifying same-lender renewal limits the tax to new money.
“The $2,450 cap protects me.” That cap is for notes. The state says there is no cap on mortgages.
“The lender pays the intangible tax, so it is not my cost.” The lender is the taxpayer, but it may pass the cost to you.
“A streamline means no taxes.” Streamline rules govern underwriting and cash back, not state mortgage taxes.
“Refinancing with my current lender always avoids it.” The exemption depends on the statute and on how the deal is structured. It is not automatic.
Questions to Ask Before You Commit
Put these to your loan officer and closing agent early:
- What is the full new loan amount, and what does each Florida tax come to on it?
- Is any part of this refinance a same-lender renewal?
- Are these costs built into the balance or paid from my proceeds?
- How much net cash do I actually receive after all closing costs?
- Does the cash-out loan stay within the LTV cap once costs are included?
Then compare Loan Estimates from more than one lender. The tax lines will look similar, so the differences usually show up elsewhere. For the exact figure, rely on the Florida Department of Revenue and a licensed professional, not on a rule of thumb.
Key Terms Defined
Doc stamps (documentary stamp tax): A Florida tax on a recorded mortgage, based on the full amount it secures.
Nonrecurring intangible tax: A separate one-time Florida tax on a mortgage secured by Florida real estate, based on the secured amount.
Cash-out refinance: A new mortgage larger than the old one that pays off the old loan and gives you the difference in cash.
LTV (loan-to-value): The new loan as a percentage of the home’s appraised value.
Renewal: A new loan from the same lender that replaces the old one without adding new money, which may qualify for a tax exemption.
Seasoning: The waiting period a lender requires, such as how long you have owned the home or held the loan.
Before You Choose
Doc stamps are part of the cost of reaching your equity, so weigh them against what you plan to do with the cash. 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. Lendmire is a mortgage broker, and all program figures are subject to lender guidelines and full file review. Nothing here is a commitment to lend.
Frequently Asked Questions
Do I pay doc stamps on the whole loan if I only take out a small amount of cash?
Yes, in most cases. The tax follows the full amount the new mortgage secures, so a small cash-out still creates a new mortgage taxed at its full size. A same-lender renewal may limit the tax to new money, but only if the structure meets the statute.
Is the intangible tax the same as doc stamps?
No. They are two separate state taxes with different rates and different exemption conditions. Doc stamps are 35 cents per $100 or portion thereof of the secured amount. The intangible tax is two mills of the secured amount, and the lender is the legal taxpayer, though the cost is often passed to you.
Can I roll these taxes into the new loan?
Often, yes, within program limits. On a refinance, costs can be built into the new balance or covered from your proceeds. Either way they count against the LTV cap, which is 80% on a conventional one-unit primary-residence cash-out. That reduces the equity you can actually reach.
Does an FHA Streamline or VA IRRRL avoid Florida doc stamps?
Not by itself. Those programs set underwriting and cash-back rules for people who already hold an FHA or VA loan. They still produce a new recorded mortgage in Florida, so the tax question applies unless the loan is reviewed as a renewal.
Does the tax change if the home is a second home or a rental?
No. Florida’s mortgage tax follows the amount secured, not how you use the property. Occupancy changes how much you can borrow, and leverage is lower on second homes.
For your own numbers, request a scenario review with Lendmire.
About Lendmire
Lendmire, NMLS# 2371349, is a mortgage brokerage with consumer lending licenses in 16 states. FHA, VA, conventional and jumbo purchase and refinance loans are arranged through wholesale lending partners, and each application is reviewed individually by the lender. 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. Florida First District Court of Appeal, Opinion No. 2024-0153
4. Fannie Mae Eligibility Matrix
5. Fannie Mae Selling Guide B2-1.3-02, Limited Cash-Out Refinance Transactions
This article is part of Lendmire’s Refinance series — every loan program’s qualification details, guidelines, and scenarios live on the loan options page.
Related reading: Cash Out Refinance Investments · Can a Cash-Out Refinance Pay Off a Partner Who Only Holds a Note? · Should a Homeowner Use a Cash-Out Refinance for a Renovation?
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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Compliance and disclosures. Lendmire (NMLS# 2371349) is a licensed mortgage broker and is not a direct lender, depository institution, financial advisor, or tax professional. Content in this article is general market analysis and educational information — not financial, legal, or tax advice for any specific situation. Lendmire does not guarantee loan approval; every transaction is subject to underwriting by the funding lender. Mortgage pricing and loan program guidelines are subject to change at any time without notice and vary by borrower characteristics, property type, and state regulations. Lendmire complies with Equal Housing Opportunity. Licensure verification: NMLS Consumer Access.