The Quick Read: Yes, usually. Florida taxes the recorded mortgage on the full amount of debt it secures, not just the cash you walk away with. That means the old payoff, the new cash, and any financed costs all count. Miami-Dade’s higher stamp rates apply to deeds, not to your mortgage.
This is a state tax, not an FHA charge. Other states tax mortgages differently or not at all, so use Florida here as a worked example of how a recording tax can work on a cash-out refinance.
What Is Actually Being Taxed?
The tax attaches to the recorded mortgage. It does not attach to the cash. When you refinance, you sign a new note (your promise to repay) and a new mortgage (the lien on your home). The county records the mortgage, and the tax is due at that moment.
A refinance has no new deed, because ownership does not change. So the deed-side tax does not apply. Only the loan-side taxes do.
Florida has two of them on a refinance:
| Tax | What triggers it | What it is based on |
|---|---|---|
| Documentary stamp tax on the mortgage | Recording the mortgage | Full amount secured, 35 cents per $100 or part of $100 |
| Nonrecurring intangible tax | Recording the mortgage | Full amount secured, 2 mills (0.2%) |
| Documentary stamp tax on a deed | Transferring ownership | Purchase price; not triggered by your refinance |
Many homeowners lump the two mortgage-side taxes together. They are separate taxes with separate legal bases. Both show up in your closing costs, and both grow with the size of the loan.
Why the Full Loan and Not Just the Cash-Out?
Because the new mortgage replaces the old one. It secures one whole debt. That debt is the payoff of your existing loan, plus the cash you take, plus any costs rolled into the balance.
Think of it this way. You do not get a tax bill on “the extra.” You get a tax bill on “the new lien.” The lien covers everything.
Here is a quick picture in percentages. Say your home’s appraised value supports a new loan at the program’s 80% ceiling. Your old balance is about 55% of value. Your cash out is the gap, roughly 25% of value before costs. The tax base is the full 80%, not the 25%. The base is more than three times larger than the “cash-out only” idea suggests.
Florida’s Department of Revenue states the mortgage tax is based on the full amount of indebtedness secured. It is figured at 35 cents per $100 or portion thereof. Because the rate is a flat percentage of the loan, the tax is about 0.35% of the secured amount. At an 80% loan, that works out to roughly 0.28% of your home’s value. The intangible tax at 0.2% adds about 0.16% of value on top.
Those are rough proportions, not a quote. Your closing agent computes the real figures from your final loan amount.
Does Miami-Dade Change the Answer?
Not for your mortgage. Miami-Dade has its own rate on deeds and similar transfer documents. The rate on mortgages and notes is the same as in the rest of the state.
This is where searchers get confused. Anyone who looks up “Miami-Dade doc stamps” sees the deed rate and the county surtax. Those apply when a home is sold or a deed is recorded. A cash-out refinance does not record a new deed. So the Miami-Dade deed rate does not drive your refinance cost.
The Department of Revenue’s documentary stamp page lays out the deed rates and notes the county exception on that side. The loan-side rate stays where it is.
Is There a Cap on the Tax?
On a recorded mortgage, no. This is the second big myth.
Florida does cap the tax on an unsecured note at $2,450. Borrowers hear “there’s a cap” and assume it protects a large refinance. It does not. The cap does not apply to a mortgage filed or recorded in Florida, and an FHA cash-out is always secured by a recorded mortgage.
So the tax keeps climbing as the loan climbs. Borrow more, owe more tax. The intangible tax works the same way.
How Does FHA Change the Tax Base?
FHA does not set these taxes. It sets the loan amount. The tax follows.
Here is what I see on FHA cash-out files, and how each feature touches the tax:
- The 80% ceiling. The FHA cash-out reaches 80% LTV (loan-to-value, the loan as a share of the appraised value). This applies to a home you have owned and occupied for 12 months before the case number is assigned. HUD Mortgagee Letter 2019-11 is the change that set cash-out limits at 80%.
- The appraisal. The appraised value times 80% caps the new loan. A lower appraisal means a smaller loan, and so a smaller tax.
- The upfront premium. FHA charges an upfront mortgage insurance premium of 1.75% of the base loan, and it is typically financed. A financed premium raises the recorded loan amount. Ask your closing agent how they treat it in the tax base. I would not assume it is excluded.
- Closing costs rolled in. Costs you finance also raise the loan amount, and they count against the 80% ceiling. An older HUD reference guide lists closing costs and prepaid expenses among the pieces of the maximum-mortgage calculation. That guide is archived and its percentages are outdated, so use it for the structure, not the numbers.
- Other liens. A second lien that stays in place uses up part of the 80% combined limit. That leaves less room for cash.
On many files, the loan that gets recorded is a bit larger than the number a borrower had in mind. The reason is usually the financed premium plus rolled-in costs. The tax follows that final figure.
A Worked Example
Take a Miami-Dade homeowner who has lived in the house for several years. The home appraises at a value that supports an 80% loan. The existing mortgage balance is about 60% of value.
Step through it:
1. The new loan amount. The program ceiling is 80% of value. Part of that goes to pay off the old loan, part to financed costs and the premium, and the rest is cash to the borrower.
2. The tax base. The base is the whole new loan, near 80% of value.
3. The stamp tax. About 0.35% of that base, rounded up to the next $100.
4. The intangible tax. About 0.2% of the same base.
5. The total. Together, roughly 0.55% of the new loan.
Now the myth version. Someone assumes tax applies only to the cash portion, about 20% of value minus costs. That figure would be a fraction of the true base. The real tax would be several times higher than the myth predicts.
Now push the loan up. Suppose the borrower takes more cash and the loan rises toward the ceiling. The tax rises with the whole loan, not just the added cash. Every extra dollar borrowed also adds its own share of tax.
Cash-out is a “full new loan” case because the new lien replaces everything. That is why it behaves differently from what many homeowners expect.
Streamline vs. Cash-Out: Does It Differ?
Yes, in the base, because the products differ. An FHA Streamline refinances an existing FHA loan with no appraisal and a limited credit review. It requires a net tangible benefit, and the mortgage insurance premium continues. It also limits cash back and does not let you roll closing costs into the new loan. A smaller loan means a smaller tax base. The state tax rules themselves are the same either way: the recorded mortgage is taxed on what it secures.
| Feature | FHA Cash-Out | FHA Streamline |
|---|---|---|
| Who it’s for | Owner-occupants, owned 12 months | Existing FHA borrowers |
| Maximum leverage | 80% LTV | Tied to the existing loan |
| Appraisal | Required | Not required |
| Cash back | Yes | Very limited |
| Costs rolled in | Yes, within the 80% cap | No |
| Tax base | Full new loan, often larger | Typically smaller |
Streamline is a different product with a different purpose. It lowers cost or changes the term. It is not a way to pull equity.
If you want to see how Lendmire frames the product, here is the FHA cash-out refinance program overview. Program details are subject to lender guidelines and full file review.
Who Pays, Who Collects, and Where Do You See It?
You pay it, in most cases, through your closing costs. The state sets the tax. Neither FHA nor your lender does.
The county clerk or recording official collects the doc stamp tax when the mortgage is recorded. The closing agent, usually a title company or attorney, computes it and sends it in.
The intangible tax works a little differently. By statute the lender is the taxpayer, but the Department of Revenue notes the lender may pass the cost to the borrower. It is also paid at recording. If the mortgage is not recorded within a set window, payment goes straight to the state.
On your paperwork, these show up as government recording and transfer charges. Look for them on the Loan Estimate and again on the Closing Disclosure. Compare the two. If a line looks different, ask why.
One more mechanical detail. When both a note and a mortgage exist, the tax is paid on the mortgage. Florida’s statute requires a notation on the note showing that the tax was paid on the mortgage. That is why you may see a stamp on a document you thought was untaxed.
Edge Cases and Exceptions
Most cash-outs follow the rule above. A few special cases deserve a quick look.
The renewal exemption. Florida law exempts certain renewal notes. The exemption is narrow. It covers a renewal that continues the same obligation without enlarging it, and it generally reaches only the unpaid balance of the original debt. A cash-out adds new money. That is an enlargement, so the exemption cannot cover the new money. Whether a refinance with a new lender and a new FHA note counts as a “renewal” at all is a question for title counsel or your closing agent. Do not count on a credit for tax you paid on the old loan.
No credit on the intangible tax. Practitioner commentary says the tax you paid on the old mortgage does not offset the new one. Treat that as a working assumption and confirm it with your title agent.
Loans larger than the collateral. The intangible tax cannot exceed the value of the property securing the debt. On an FHA cash-out capped at 80% LTV, that limit is rarely a factor. The exact numbers vary by lender and program and follow a full review of property, leverage, and credit.
The note-cap mix-up. Covered above. The $2,450 cap belongs to notes, not recorded mortgages.
Investor properties. FHA cash-out is for your principal residence. The state tax does not care about occupancy, since it follows the recorded mortgage. But the leverage you can reach does depend on occupancy.
Other states. Not every state taxes mortgages this way. Some charge a recording or transfer tax. Others charge nothing on a mortgage. Ask your loan officer about local rules before you assume Florida’s math applies.
Questions to Ask Before You Close
Use this list with your loan officer and closing agent:
- What is my final recorded loan amount, including the financed premium and any costs rolled in?
- How are the documentary stamp and intangible taxes computed on that amount?
- Is the intangible tax passed to me, and where does it appear?
- Do the Loan Estimate and Closing Disclosure show the same tax lines?
- Does any renewal exemption apply to my file, and who confirmed it?
- Does a second lien stay in place, and how does it affect my cash?
Ask for the answers in writing. They are easy for a closing agent to produce.
Key Terms Defined
Documentary stamp tax: A state tax charged when certain documents, like a deed or a recorded mortgage, are filed.
Nonrecurring intangible tax: A one-time Florida tax on the debt secured by a mortgage on Florida real property.
LTV (loan-to-value): The loan balance as a percentage of your home’s appraised value.
CLTV (combined loan-to-value): All loans on the home added together, as a percentage of value.
Cash-out refinance: A new mortgage that pays off the old one and gives you cash from your equity.
Net tangible benefit: A real, measurable gain the borrower must get from an FHA Streamline.
Frequently Asked Questions
Do I owe doc stamps only on the cash I take out?
No. The tax applies to the full amount the new mortgage secures. That includes the old payoff, your cash, and any financed costs. A “cash-out only” estimate understates the bill.
Does Miami-Dade charge more stamp tax on my refinance?
Not on the mortgage. The county’s special rate sits on the deed side, and a refinance records no new deed. Your loan-side taxes follow the same rate as elsewhere in Florida.
Is there a cap on the tax for a big loan?
Not on a recorded mortgage. The $2,450 cap applies to notes only. Since an FHA cash-out is secured by a recorded mortgage, the tax keeps rising with the loan amount.
Will I get credit for tax I paid on my old mortgage?
Don’t plan on it. The renewal exemption is narrow and does not cover new money. Whether any piece applies to a new FHA loan is a question for your closing agent.
Can I roll these taxes into the loan?
Often yes, within the program’s leverage ceiling. Financed costs raise the loan amount and count against the 80% limit. That means less net cash to you and a slightly higher balance. Paying in cash instead raises your cash to close. Program terms are subject to lender guidelines and full file review.
Next Step
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 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. HUD Mortgagee Letter 2019-11
3. HUD Archives: Refinance Reference Guide
4. Florida Department of Revenue: Nonrecurring Intangible Tax
5. Florida Statutes, Chapter 201
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: Conventional Cash-Out Requirements for Leaving an FHA Loan · How to Choose a VA Cash-Out Lender From a Conventional or FHA Loan · How to Time a VA Cash-Out When Leaving a Conventional or FHA Loan
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.