The Quick Read: Florida taxes the entire new mortgage, not just the cash you pull out. Budget for doc stamps of 35 cents per $100 plus a one-time intangible tax of 0.2%, together about 0.55% of the new loan. Both come out of proceeds at closing. Miami-Dade’s extra deed charges do not apply to a refinance, because no deed is recorded.
- The tax base is the whole new loan balance, including the payoff of the old loan.
- Doc stamps are 35 cents per $100, rounded up. Intangible tax is 0.2% with no rounding.
- The $2,450 cap applies to standalone notes, not to recorded mortgages.
- The taxes reduce net cash-out, so model them before you decide to refinance.
Investors who already hold a Miami-Dade rental, often in an LLC, usually ask one question first: does the county’s deed surtax hit my refinance? It doesn’t. The real planning work is sizing the mortgage-side taxes against net proceeds. This explainer walks through that math and the places where the rule bends.
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What Are Doc Stamps on a Cash-Out Refinance?
Doc stamps are a state tax on written obligations to pay money, including promissory notes and recorded mortgages. The Florida Department of Revenue sets the tax based on the amount of indebtedness the mortgage secures. There is no cap on the tax due on a mortgage.
A second tax rides alongside. Under Florida Statutes chapter 199, a one-time intangible tax of 2 mills per dollar applies to obligations secured by a mortgage on Florida real property. That is 0.2%. The lender is the legal taxpayer but may pass the cost to the borrower, and on investor files it normally lands on the borrower’s side of the closing statement.
Key Terms Defined
Documentary stamp tax: The state tax on the note and mortgage, charged per $100 of the amount secured.
Intangible tax: A separate one-time state tax of 0.2% on a loan secured by Florida real property.
Tax base: The loan amount the tax is calculated on. On a standard refinance, that is the full new loan.
Net proceeds: Cash you receive after the old loan payoff, taxes, and closing costs.
Maximum lien: A cap written into the mortgage on what it secures, which can change the intangible tax base.
How Underwriting and Closing Treat the Taxes
The taxes sit in the closing costs and come out of proceeds. Underwriting cares about them in three places.
1. Net proceeds. The new loan must cover the old payoff, the taxes, other closing costs, and any cash you want. Taxes scale with the whole loan, so a small cash-out on a large balance still carries the full tax.
2. Leverage. On a standard rental cash-out, most programs in Lendmire’s wholesale network cap leverage at 75% LTV, with about 6 months of seasoning from title recording. Taxes paid from proceeds do not raise that ceiling. Equity available is a function of value, the payoff, and the 75% cap.
3. Coverage. The new, larger loan carries a larger monthly obligation. Rent has to cover that full PITIA at the program’s floor, and 1.00 is where many select programs start. Stronger ratios open better terms. A separate select-lender path takes coverage below 1.00 with leverage and terms adjusted. Clearing the ratio is not the same as positive cash flow, since repairs, vacancy, and management sit outside the calculation.
Reserves matter too. Files commonly need about 6 months of PITIA, and larger loans step up to about 9 months above $1,500,000. Reserves documentation is separate from the tax budget, so do not count the same dollars twice.
For the broader picture of how these pieces fit, see Lendmire’s complete DSCR loans guide.
The Formula, Step by Step
Run it in this order.
1. Take the full new loan amount.
2. Divide by 100 and round up to the next whole number.
3. Multiply by $0.35. That is the doc stamp figure.
4. Multiply the actual loan amount by 0.002, with no rounding. That is the intangible tax.
5. Add the two. That is the mortgage-side tax bill.
The Miami-Dade Clerk’s Official Records page lists the same split: mortgage doc stamps at $0.35 per $100, rounded up to the nearest hundred, and intangible tax at $2 per $1,000, calculated on the actual amount with no rounding. A U.S. Realty Training guide works a $400,000 loan to $1,400 in note stamps and $800 in intangible tax. Scale that to your own balance.
One wrinkle: if the mortgage limits recovery to less than the note’s face amount, Starfield & Smith explains that intangible tax is paid on that maximum lien. Ask the title agent how the mortgage is drafted.
Why the Whole Loan Gets Taxed
A new lender paying off your old loan and replacing it with a new one gets no offset for tax paid on the old loan. Picture an investor with a modest balance who pulls a small amount of cash. The tax still runs on the complete new mortgage. Cash-out size is not the driver. Loan size is.
Deed Taxes vs. Mortgage Taxes
Miami-Dade’s well-known extras are deed-side charges: doc stamps on deeds and a surtax under Miami-Dade Code 29-7(D), per the Clerk’s page above. A cash-out refinance by the existing owner records a mortgage but no new deed, so those items drop out.
| Item | Triggered by | On a refinance? |
|---|---|---|
| Deed doc stamps | Deed transfer | No new deed |
| Miami-Dade deed surtax | Deed transfer | No new deed |
| Mortgage doc stamps | New mortgage | Yes, full loan |
| Intangible tax | New mortgage | Yes, full loan |
Lendmire’s piece Does Miami-Dade Charge Extra Doc Stamps on a DSCR Cash-Out Refinance? covers that deed-versus-mortgage split in more depth.
Where the General Rule Breaks
Five edge cases come up on investor files.
The $2,450 cap. It applies to a standalone note. The Florida Department of Revenue’s doc stamp page and its Tax Information Publication 24B04-01 state the limit does not apply to a recorded mortgage. Planning around a cap that isn’t there can throw off a closing budget.
Assignment structures. Florida’s statute says no additional intangible tax is due on an assignment of a note already taxed. Some lenders take an assignment, then amend and restate, so tax lands only on the increase above the existing balance. This depends on the existing lender cooperating and is mostly described in commercial contexts. Do not build a DSCR budget around it. Treat any savings as upside if a title agent confirms it.
Same-lender refinance. The statute exempts intangible tax where new principal does not exceed the unpaid balance plus accrued interest. Cash-out adds principal, so the full exemption does not fit.
Out-of-state signing. A note signed outside Florida and unsecured by Florida real estate is not taxable. A mortgage on Florida real property still triggers both taxes at recording.
Moving title in or out of an LLC. A deed brings back deed stamps, and the surtax may apply depending on property type. Whether condo units fall within the single-family exception is a question to confirm with a Florida title agent before any deed is recorded. Keeping title where it already sits avoids the issue. Entity changes are a question for your attorney, ahead of the refinance rather than during it. Loans to LLC-titled borrowers are subject to lender program eligibility.
DSCR vs. conventional financing
There are two common ways to finance an investment property, and they qualify you differently — here’s how investors weigh them.
Why investors choose it
- Qualifies on the property’s rental income — no personal tax returns, W-2s, or pay stubs needed to document income.
- No personal debt-to-income ceiling to clear, so existing mortgages and obligations don’t cap your borrowing the same way.
- Can be closed in an LLC, keeping the property inside a business entity.
- Built for scaling — not held to the limit on number of financed properties that conventional financing applies.
- Underwriting centers on the deal: generally qualifies when the rent covers the payment, a 1.00x coverage ratio being a common baseline (confirmed in underwriting).
- Designed specifically for investment property, including long-term and, where the program allows, short-term rentals.
Where it’s strong
- Often the lowest ongoing financing cost for a buyer who fully qualifies on personal income — a fit for a first property or a cost-first purchase.
Trade-offs for investors
- Requires full personal income documentation and must fit within a debt-to-income limit — salary, existing debts, and other mortgages all count.
- Typically held in your personal name rather than a business entity.
- Caps how many financed properties you can carry, which can become a ceiling as a portfolio grows.
- Evaluates you as a borrower as much as the property, which usually means more paperwork.
How investors usually choose: a first or single property often optimizes for the lowest financing cost; portfolio builders often optimize for leverage, vesting in an LLC, and scaling past conventional caps. The right answer depends on your goals, the property, and current guidelines — both paths run through select lenders in Lendmire’s wholesale network, with eligibility and terms confirmed in underwriting.
What the Taxes Do to Net Proceeds
Mortgage-side taxes total about 0.55% of the new loan. On a $500,000 loan, doc stamps are $1,750 and intangible tax is $1,000. Those figures come straight from the formula, so they scale cleanly with any balance.
The practical effect is simple. Before deciding to refinance, list the payoff, the taxes, other closing costs, and the cash you want. Compare the total to the 75% LTV ceiling on a standard rental. If the loan can’t cover everything at that ceiling, the cash you can take shrinks, not the tax. Each figure is subject to lender guidelines and a complete review of property type, leverage, and credit.
State mortgage taxes are fixed by statute, so they can’t be shopped between lenders. When comparing offers, separate the taxes from lender and third-party charges. Only the second group varies.
A Planning Checklist
1. Before applying: confirm title is held where you want it and no deed step is planned.
2. Early in the file: ask the title agent for a tax estimate on the expected loan amount, including how the mortgage’s maximum-lien language is drafted.
3. Sizing: subtract the payoff, taxes, and closing costs from the loan at the 75% LTV cap to see actual net cash. Leverage, reserves, and pricing vary by lender and program; the final terms follow the full file review.
4. Coverage check: confirm rent still meets the program floor on the larger payment.
5. Reserves: document reserves separately from the cash you plan to receive.
6. At settlement: reconcile the tax lines on the final settlement statement against your estimate.
Myths That Cost Investors Money
- “Miami-Dade charges extra on refinances.” The surtax sits on deeds. Lendmire’s article Does a Miami-Dade Cash-Out Refinance Owe Doc Stamps on the Full Loan? takes the whole-loan question further.
- “Only the cash-out is taxed.” The full mortgage is taxed unless an assignment structure applies.
- “Doc stamps and intangible tax are one tax.” They are two taxes under different chapters.
- “I get credit for tax on my old loan.” Not on a payoff-and-replace refinance.
Verify current Clerk rates before closing, since the Clerk’s page is undated. Program details change and every file is underwritten individually. This is not tax or legal advice.
Frequently Asked Questions
Do I pay doc stamps on the whole loan or just the cash-out?
The whole loan. The Florida Department of Revenue taxes the full indebtedness the mortgage secures. A small cash-out on a large new balance still carries tax on the entire amount.
Does the Miami-Dade deed surtax apply to my refinance?
No. The surtax and the higher deed rate attach to deeds. A refinance by the current owner records a mortgage only, so mortgage rates apply, the same as elsewhere in Florida.
Can the taxes be rolled into the loan?
They are paid from loan proceeds at recording, which lowers net cash. Rolling them into the balance still happens inside the 75% LTV cap on a standard rental, so it reduces cash rather than adding to it. Terms vary by lender guidelines, property type, leverage, credit profile, and full file review.
Does a DSCR loan change the tax?
No. The tax follows the mortgage, not the loan type. DSCR changes how the file qualifies, primarily on property-level rental income covering the payment, subject to lender guidelines.
Does an LLC borrower owe more?
Not on the mortgage taxes. The risk is a deed into or out of the LLC, which can add deed taxes. Eligibility for LLC borrowers is subject to program terms.
Next Step
If you are buying or refinancing a rental property and want to see how the numbers work, Lendmire can help you compare DSCR loan options based on the property income, credit profile, leverage, and investor goals. Quote requests start at 828-256-2183 or through Lendmire’s online form.
For the mechanics of pulling equity out of a rental property, see Lendmire’s guide to cash-out refinance on an investment property.
About Lendmire
Lendmire (NMLS# 2371349) is a DSCR-focused mortgage broker that helps arrange investor financing across 41 markets, including Washington, D.C., through wholesale and investor-lending channels. DSCR eligibility is generally reviewed by the lender around the property’s rental income rather than personal income documentation, subject to lender guidelines — which works for self-employed investors, LLC operators, and portfolios above four financed properties. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
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Informational only. Not a Loan Estimate, approval, or commitment to lend. Program availability and eligibility are subject to lender guidelines, credit approval, property review, and underwriting.
References
1. Florida Department of Revenue – Documentary Stamp Tax
2. Florida Statutes chapter 199
3. Miami-Dade Clerk – Official Records
4. U.S. Realty Training – Florida doc stamps and intangible tax
5. Starfield & Smith – Documentary stamp and nonrecurring intangible tax refresher
6. Florida DOR – Tax Information Publication 24B04-01
This article is part of Lendmire’s investment property cash-out refinance program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: Should a Paid-Off Rental Use DSCR Cash-Out or a Second Lien? · Can a Recently Bought Rental Qualify for a DSCR Cash-Out Refinance? · Should You Choose DSCR Cash-Out Over an Agency Loan on a Duplex?
Guides: Investment Property Cash-Out Refinance in Miami, FL · Investment Property Cash-Out Refinance in Florida
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.