The Quick Read: Yes. Florida’s documentary stamp tax on a new mortgage is figured on the full new loan amount, not just the cash you take out. Under Florida Statutes §201.08, the mortgage tax is 35 cents on each $100 of the debt the new note and mortgage evidence. Miami-Dade has no higher mortgage rate, and no deed tax applies because ownership doesn’t change.
Key Takeaways
- The tax follows the new note and mortgage, so the whole new balance is the base. That includes the part that simply pays off your old loan.
- A cash-out and a rate-and-term refinance of the same balance generate the same tax. Loan purpose doesn’t change the formula.
- Miami-Dade’s special rates and surtax are on deeds. They don’t touch a refinance.
- A recorded mortgage has no dollar cap. The cap on notes doesn’t help a homeowner here.
- Doc stamps are government charges, so they don’t vary from one lender to the next.
What Is the Tax Actually Measured On?
The tax is measured on the debt, not on what you do with the money. In a cash-out refinance, the new loan equals the payoff of your old first mortgage, plus any other liens paid off, plus the cash you receive, plus any closing costs you finance. That total is the amount on the new note. That total is the doc stamp base.
The Florida Department of Revenue’s documentary stamp tax guidance puts the rate at 35 cents per $100, or portion thereof, of the indebtedness secured. It is based on the obligation, not on the proceeds. The agency’s Tax Information Publication adds a detail many homeowners get wrong: the dollar limit on tax for a promissory note does not apply to a mortgage that is filed or recorded in Florida. A recorded residential mortgage is taxed with no cap.
So a bigger loan means a bigger tax. Nothing fancy.
Does Taking Out Less Cash Reduce the Tax?
Only to the extent it makes the new loan smaller. Say a homeowner owes a given balance and takes out a small slice of equity. The new note still covers the old balance plus that slice, and the tax applies to the whole thing. Taking out more cash raises the tax on the portion that merely replaces the old debt, because the new instrument is larger.
This matters when you’re deciding how much to pull. Each extra dollar of cash-out adds to the base at the same percentage. It’s a percentage-of-loan cost, and it scales in a straight line with the note.
Why Don’t Miami-Dade’s Deed Rates Apply?
They apply to deeds, and a refinance doesn’t use one. Miami-Dade is known for its own deed stamp rate and a surtax on certain non-single-family property. Those headlines drive a lot of confusion. A refinance involves no change of ownership, so no new deed is signed and no deed stamps are due. What you do sign is a new promissory note and a new recorded mortgage. Those are taxed at the standard statewide mortgage and note rate.
Here’s the myth-versus-fact view:
| Common belief | What actually applies |
|---|---|
| Miami-Dade charges extra stamps on mortgages | The statewide mortgage rate applies |
| A refinance triggers deed stamps | No deed, so no deed stamps |
| The cap on notes protects me | It doesn’t apply to a recorded mortgage |
| Cash-out is taxed more than rate-and-term | Same formula; only loan size matters |
| My lender can waive or discount it | It’s a government charge, not a lender fee |
Full Loan or Only the New Money? The Deciding Factors
The default answer is the full new loan. There is one narrow statutory exception worth understanding. The statute taxes only the amount of indebtedness that exceeds what was previously taxed when a mortgage secures a note on which tax has already been paid. It also says that where more than one mortgage secures the same primary note, tax is paid once. That prevents taxing the same note twice.
That protection doesn’t exempt a new loan just because it pays off an old one. A typical cash-out with a new lender creates a new note, and the new note is taxed in full. Treatment can differ where the existing note is kept alive and modified rather than replaced, but that depends on how the transaction is documented. Whether your file fits any exception is a question for the title or closing agent. Don’t assume it does.
Rough decision guide:
| Situation | Likely treatment |
|---|---|
| New lender, old loan paid off, new note | Taxed on the full new loan |
| Same lender, brand-new note | Generally the full new loan |
| Existing note kept and modified | Ask the closing agent; documentation decides |
| Added borrower or title change | Confirm with the closing agent before signing |
What Does the Process Look Like Step by Step?
Across the wholesale programs Lendmire places files with, the sequence is consistent:
1. The appraisal sets the value, and the loan-to-value cap sets how much you can borrow.
2. The new loan is sized: old payoff, other liens, cash to you, financed costs.
3. You sign a new note and mortgage.
4. The title or closing agent computes the stamps from the note amount.
5. The mortgage is recorded and the tax is collected at recording.
Leverage is the number that most affects the base. For conventional cash-out refinances in the programs Lendmire works with, the ceiling is 80% LTV on a one-unit principal residence. A wholesale lane reaches 89.99% LTV with no mortgage insurance for qualifying primary-residence files at a 680 score and a 50% ratio on a thirty-year fixed, conforming balance, with its own six months of seasoning. All of this is subject to lender guidelines and full file review.
Seasoning can also block the deal. Fannie Mae requires the first mortgage being paid off to be at least 12 months old, measured from note date to note date. A borrower also generally needs to be on title for six months, with exceptions for delayed financing, inheritance and legal awards.
How Does Cash-Out Differ From Rate-and-Term Here?
Underwriting differs. The stamp tax doesn’t. Fannie Mae separates “limited cash-out” (rate-and-term) from cash-out transactions. A limited cash-out refinance pays off the existing first mortgage, closing costs and a purchase-money second lien, with only incidental cash back. In the Selling Guide, it also requires that at least one borrower on the new loan own the property at application, with exceptions such as inheritance or divorce awards.
The wholesale rate-and-term lane reaches 95% LTV on a one-unit principal residence, with mortgage insurance above 80%. Higher leverage means a bigger note, which means more stamp tax. Two refinances with the same final balance owe the same tax, whatever the label. The exact numbers vary by lender and program and follow a full review of property, leverage, and credit.
Government streamlines work the same way on the tax side. An FHA Streamline or a VA IRRRL isn’t cash-out, but the new balance is generally the old payoff plus allowable costs. The new note is still taxed in full. On a VA loan, financed costs and the funding fee raise the balance slightly, which nudges the stamp base up with them.
Can You Roll the Tax Into the Loan?
Often, yes, but it has a cost. Financing the taxes raises your balance, your monthly obligation and your LTV. A higher LTV can change mortgage insurance and push you toward a cash-out cap. Because the tax scales with the note, financing it creates a small loop: a larger balance carries slightly more tax. Whether financing closing costs is allowed depends on the program and lender.
Florida also has a separate state intangible tax on the new mortgage. Think of it as an added state mortgage charge that also follows the loan amount. Ask your closing agent for the exact line items.
What Should You Check Before Signing?
Government fees don’t differ by lender, so don’t rate-shop them. Compare the lender’s own charges instead. On the Loan Estimate and Closing Disclosure, “Taxes and Other Government Fees” splits into recording fees and transfer taxes. Under the CFPB’s Regulation Z rule, recording fees are not based on the loan amount, while loan-amount-based government charges are classed as transfer taxes whatever the state calls them. A loan-amount-based Florida mortgage stamp would logically land in that transfer-tax line, but confirm the line placement with your closing agent.
A short checklist:
- Confirm the note amount the stamps are computed on.
- Check whether the base includes financed costs.
- Ask whether any exception was considered, and on what documents.
- Confirm no deed stamps appear for an ordinary refinance.
- Compare the intangible tax and recording lines against the estimate.
Key Terms Defined
Documentary stamp tax: A Florida tax on documents that create debt, measured on the amount of the debt.
Note: The signed promise to repay the loan.
Mortgage: The recorded document that makes the home security for the note.
Cash-out refinance: A new loan larger than your payoff, with the difference paid to you.
Seasoning: The minimum time a loan or ownership must be in place before a cash-out is allowed.
LTV: Loan-to-value, the loan balance as a percentage of the home’s appraised value.
Frequently Asked Questions
Does the tax apply to the old loan balance I’m paying off?
Yes, because the new note includes that payoff. The tax follows the new instrument, not the new cash. The statute’s anti-double-tax rule protects against taxing the same note twice, but it doesn’t exempt a new loan just because it replaces an old one.
Will a second home or rental change the doc stamp formula?
No. The Florida tax applies to the instrument regardless of occupancy. Occupancy changes leverage: conventional cash-out tops out at 80% on a one-unit principal residence and 75% on second homes and two- to four-unit properties, which changes the size of the note.
Can a lender waive or reduce doc stamps?
No. They are government charges, not lender fees. A lender can’t set or discount them. Compare origination charges and points instead.
Does this rule apply in other states?
No. This is Florida-specific. Other states tax mortgages differently or not at all, so a borrower elsewhere should ask the closing agent what applies.
Does a reverse mortgage work differently?
Yes. For a home equity conversion mortgage, only the principal limit available to the borrower is taxed. That’s a different product from a standard cash-out refinance.
Tax treatment can depend on your situation; borrowers should speak with a qualified tax professional before relying on any deduction or credit. This article isn’t legal advice, and nothing here is a commitment to lend.
If you are weighing a cash-out refinance against keeping the loan you have, Lendmire can help you compare the cash-out refinance programs and the equity each one reaches. Call 828-256-2183 to talk through your options.
For your own numbers, request a scenario review with Lendmire.
For current guidelines and terms, see Lendmire’s refinance programs page.
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 Senate, Florida Statutes 201.08
2. Florida Department of Revenue, Documentary Stamp Tax
3. Florida DOR Tax Information Publication 24B04-01
4. Fannie Mae Capital Markets, cash-out refinance eligibility update
5. Fannie Mae Selling Guide B2-1.3-02
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 Timeline for Consolidating Card and Loan Debt · Should You Use a Cash-Out Refinance to Build an Addition or ADU? · Does a Cash-Out Refinance for a Renovation Need a Full Appraisal?
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.