The Quick Read: A plain cash-out refinance records a new note and mortgage but no deed, so Miami-Dade’s extra surtax stays off the loan. The new debt is taxed at the same statewide rates as in any other Florida county. The title agent collects those taxes at closing, and they come out of your proceeds.
- No deed, no county surtax. Miami-Dade’s extra charge sits on deeds, not on mortgages.
- Two statewide taxes hit the new loan. Doc stamps run 35 cents per $100 and the intangible tax runs 0.20%, together 0.55% of the loan.
- The base is the whole new loan. It is not just the cash you take out.
- The ratio ignores them. These one-time taxes shrink your net cash. They do not change your DSCR.
- The edge case is a deed. Moving title into an LLC at the same closing brings the county question back.
Why Do Investors Think Miami-Dade Charges Extra on a Refinance?
The belief comes from a real fact attached to the wrong document. Miami-Dade is the only Florida county that levies a documentary surtax, and it charges the maximum, per the state’s oversight agency OPPAGA. Investors hear “Miami-Dade has extra doc stamps” and assume it follows every loan.
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It doesn’t. The surtax applies to documents that transfer an interest in real property, which means deeds. Miami-Dade County’s surtax page describes it that way, and it confirms that single-family transfers are exempt.
A cash-out refinance moves no ownership. You stay on title, the old loan is paid off, and a new loan is recorded. Nobody records a deed.
Here is the flip side. People who hear “refinances have no deed stamps” sometimes conclude there are no doc stamps at all. That is also wrong, and it costs real money at the settlement table.
What Taxes Does a Cash-Out Refinance Actually Trigger?
Two state taxes apply to the new loan, and a third applies only if a deed is recorded. The table shows which document triggers which tax.
| Document | Tax triggered | Does Miami-Dade differ? |
|---|---|---|
| New promissory note and mortgage | Doc stamps on the debt | No, same statewide rate |
| New mortgage on Florida property | One-time intangible tax | No, same statewide rate |
| Deed (only if recorded) | Deed doc stamps, plus surtax | Yes |
| Cash-out refinance, no deed | Note and mortgage taxes only | No |
The first is documentary stamp tax on the debt. Florida’s statute taxes recorded mortgages at 35 cents per $100 of indebtedness. Any fraction of $100 rounds up to the next $100.
The second is the one-time “nonrecurring” intangible tax. Section 199.133 sets it at 2 mills, or $0.002 per dollar, on debt secured by Florida real property. The taxed amount is limited to the value of the Florida property securing the loan.
Add the two and you get 0.55% of the new loan amount. These are state excise taxes on documents. A DSCR lender does not set them, add to them, or profit from them.
Deed rates are different. Statewide, a deed carries 70 cents per $100. Miami-Dade charges 60 cents when the deed conveys a single-family residence. For anything else, it charges 60 cents plus the 45-cent surtax.
How the Lender and Title Agent Handle It, Step by Step
The lender sizes the loan, and the title agent calculates and collects the taxes. The lender’s job is to make sure the loan still works after those costs come out.
1. Loan sizing. The lender sets the new loan to cover the old payoff, the cash you want, and closing costs. Across most of the network, the cap on a cash-out refinance of an investment property is 75% LTV. LTV, or loan-to-value, is the loan divided by the property’s appraised value.
2. Documents are drafted. The closing agent prepares the promissory note and the Florida mortgage. When both a note and a recorded mortgage exist, the tax is paid on the mortgage at recording.
3. Taxes are calculated. Divide the face amount of the secured debt by $100, round up, and multiply by 35 cents. Then multiply the secured amount by 0.002 for the intangible tax.
4. You review the settlement statement. DSCR loans are business-purpose investor loans, so consumer-mortgage disclosure timing rules do not govern them. Your title agent still prepares a settlement statement, and the state taxes appear on it as pass-through charges, not lender fees.
5. Recording and remittance. The clerk collects the tax when the mortgage is recorded. The intangible tax is legally the lender’s obligation, but the lender can pass the cost to the borrower, and in practice it lands on your statement. Leverage, reserves, and pricing vary by lender and program; the final terms follow the full file review.
Notice what is missing: any decision by the lender about the tax itself. The amount follows the document. That is why two lenders quoting the same loan size will show the same state taxes, even if their other costs differ.
Why the Whole Loan Is Taxed, Not Just the Cash-Out
The tax follows the secured debt, and the secured debt is the entire new loan. “Cash received” is the wrong mental model.
Picture an investor whose rental has a modest balance on the old loan and who wants extra cash out. The new loan pays off the old one and funds the cash. Both pieces sit inside one new note, so the tax applies to all of it.
Compare a rate-and-term refinance on the same property, which returns no cash at closing. It also records a new note and mortgage, so it also owes both taxes on the full new loan. The difference is only in size. A cash-out loan is usually larger, so its tax bill is larger.
Two common mistakes follow from this:
- “I only pay on the cash-out.” You don’t. You pay on everything the new mortgage secures.
- “The tax is capped at $2,450.” That cap applies to stand-alone notes and other unsecured written obligations. The mortgage paragraph of the statute has no cap. A closed-end DSCR cash-out loan secured by a recorded mortgage is taxed on the full amount.
Refinancing again soon repeats the cost, because a new note and mortgage are a new taxable event. Narrow relief exists for things like a corrective mortgage replacing a defective one on the same note. A normal payoff by a new lender does not fit those exceptions.
Where the Tax Meets DSCR Underwriting
The one-time taxes never enter the coverage test. They do reduce what you walk away with.
DSCR, short for debt service coverage ratio, compares the property’s monthly rent to its monthly PITIA. PITIA is principal, interest, taxes, insurance, and any association dues. The loan is reviewed primarily on property-level rental income covering the payment, subject to lender guidelines. A coverage number of 1.00 is where many select programs start, and stronger ratios open better pricing and leverage.
The doc stamp and intangible taxes are one-time closing costs, not part of the monthly payment. So they do not move your ratio.
They do interact with the deal in three other ways:
- Net proceeds shrink. If you need a certain amount of cash, plan for the state taxes to come out of it.
- The 75% cap still rules. On a cash-out of an investment property, the loan cannot exceed that cap whether closing costs are paid from proceeds or built into the loan. Extra costs mean less cash, not more leverage.
- A bigger loan lowers coverage. Pulling more cash raises the monthly payment, and that lowers the ratio. The tax itself is not the cause.
Remember what the ratio measures. Clearing 1.00 does not mean positive cash flow. Repairs, vacancy, management, utilities, and capital expenses sit outside the calculation.
Most programs we place files with also look at about six months of ownership, measured from title recording, before a cash-out. They want reserves of roughly six months of PITIA, stepping up for larger loans. Credit expectations vary: a 620 floor exists in parts of the network, most programs want about 660, and 700 and above unlocks the strongest leverage. All of it is subject to lender guidelines. For the full picture, see the complete DSCR loans guide.
Where the General Rule Breaks
The “no deed, no surtax” rule holds until a deed enters the closing. These are the cases where it bends.
Vesting title into an LLC at closing. Say you own a Miami-Dade fourplex personally and want the new loan in an LLC’s name, subject to lender program eligibility. Moving title requires a deed, and a deed recorded in Miami-Dade is a deed-side document. The deed rates apply, and the surtax applies unless the deed conveys only a single-family residence.
How much tax a no-sale transfer to your own entity creates depends on the transaction, and a reliable figure requires reviewing the specific file. Ask the title agent to quote it before you choose the structure.
The cleaner path for investors already in an LLC is simple. If the entity holds title now, the refinance needs no new deed, and the county question never opens.
What counts as a single-family residence. The exemption matters only on a deed. A Florida Senate staff analysis explains that a single-family residence may include a condominium unit. Duplexes through fourplexes fall outside that exemption, so a deed on a small multifamily draws the surtax.
Collateral outside Florida. The intangible tax reaches only the Florida real-property portion of the secured debt. Doc stamps follow the mortgage as recorded in Florida. Mixed collateral needs title counsel, not a rule of thumb.
Properties that are not eligible. Manufactured homes, log homes, and barndominiums are not offered in these programs, so no tax question arises for them. The tax rules above apply to the property types the programs do cover.
Same-lender renewal talk. Some commentary says a refinance with the same lender escapes the tax. The statutory basis for that is unclear, and a DSCR cash-out is usually a fresh loan with a new lender. Assume you owe the tax, and let your title agent or attorney tell you otherwise.
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 Decision Looks Like in Practice
Most investors face one real choice: keep title as it is, or restructure at the same time.
If title is already in the right name, the refinance is simple. You pay the two statewide taxes on the full new loan, and the Miami-Dade question stays closed.
If you want to move title to an LLC, treat it as two decisions, not one. Get the deed-side cost in writing from the title agent first. Then compare it against doing the transfer separately, if the lender allows. Some programs have rules about when title must be in place, so confirm with the lender before you sign anything.
If the numbers feel thin, do the arithmetic before you apply:
- Estimate your net cash after the 0.55% in state taxes and other closing costs.
- Check that the new loan stays under the 75% cap on a cash-out of an investment property.
- Confirm your rent supports a ratio that clears the program floor, with room if the loan gets larger.
- Keep reserves in view, since they are separate from the cash you receive.
One tax sentence, and only one: tax treatment can depend on how the funds are used and how the property is held, so keep clear records and speak with a qualified tax professional before relying on any deduction.
Key Terms Defined
Documentary stamp tax (doc stamps): a state tax on certain recorded documents, including a new mortgage, charged per $100 of the debt it secures.
Intangible tax: a separate one-time state tax on debt secured by Florida real property, charged per dollar of the secured amount.
Documentary surtax: Miami-Dade’s extra county tax on deeds, with an exemption for single-family residences.
Deed: the document that transfers ownership of a property. A plain refinance records none.
Seasoning: the waiting period a lender wants after you buy before it allows a cash-out refinance, about six months in most of the network.
PITIA: the monthly principal, interest, taxes, insurance, and association dues that the rent is measured against.
Frequently Asked Questions
Do I pay doc stamps again on a Miami-Dade cash-out refinance?
Yes, on the new note and mortgage. The statewide rate of 35 cents per $100 applies to the whole new loan. What you skip is the deed-side tax, because no deed is recorded.
Is the Miami-Dade surtax charged on a refinance?
Not when only a note and mortgage are recorded. The surtax applies to documents that transfer an interest in real property, such as a deed. It returns only if a deed is part of your closing.
Can I roll the taxes into the loan?
Often the costs are paid from your proceeds, which lowers your net cash. Whether any are built into the loan depends on the lender. Either way, the 75% cash-out cap on an investment property still limits the final loan amount.
Does an LLC change anything?
It can, depending on how title is held. If the LLC already holds title, nothing changes. If you deed the property into the LLC at closing, deed-side tax can apply, and the amount depends on the transaction. Ask your title agent for a written figure first.
Who pays?
Every party to a taxed document is technically liable. On a DSCR refinance, the borrower normally bears the cost through closing charges. The intangible tax is the lender’s legal obligation, but the lender may pass it to you.
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. As a broker, it arranges these loans through select lenders in its wholesale network across 41 markets, including Washington, D.C. Eligibility and terms are subject to lender guidelines, and nothing here is a commitment to lend.
For how equity extraction works on an investment property, see Lendmire’s guide to cash-out refinance on an investment property.
About Lendmire
Lendmire — NMLS# 2371349 — is a mortgage brokerage specializing in DSCR investor loans, helping arrange financing across 41 markets, including Washington, D.C., through wholesale and investor-lending channels. The model centers on property-level rental income reviewed by the lender rather than W-2 documentation, subject to lender guidelines, suiting entity-owned and multi-property investors. Lendmire holds Scotsman Guide Top Mortgage Workplace recognition for 2025 and 2026.
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References
2. Miami-Dade County, Documentary Stamp Surtax Program
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: How to Qualify for a DSCR Cash-Out With Weak Rent Coverage · How to Cash Out Refinance a 6-Unit Building With a DSCR Loan · How to Move a Rental Into an LLC Before a DSCR Cash-Out
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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Disclosure information. Lendmire is a state-licensed mortgage brokerage under NMLS# 2371349. Lendmire is not a depository institution, direct lender, or financial advisor — all loans referenced are placed through wholesale lender partners and are subject to each lender's underwriting standards. This article is provided for general informational purposes and is not a commitment to lend, nor does it constitute financial, legal, or tax advice. Loan programs, terms, rates, and qualification standards change without notice and depend on borrower profile, property type, and the state in which the subject property is located. Equal Housing Opportunity provider. NMLS Consumer Access: nmlsconsumeraccess.org.