The Quick Read: On a conventional cash-out refinance, Florida taxes the whole new mortgage, not just the cash you pull out. Two separate state taxes apply: documentary stamp tax at 35 cents per $100 of the loan, and a nonrecurring intangible tax at 2 mills. Together they come to roughly 0.55% of the secured amount. A same-lender renewal can sometimes limit the tax to new money, but that is the exception on conventional loans.
Key Takeaways
- A cash-out refinance replaces your old mortgage with a new one. Florida taxes the new mortgage.
- Doc stamps and the intangible tax are two different taxes. Both are charged on the loan amount.
- The famous note cap does not apply to a recorded mortgage.
- A same-lender “renewal” may reduce the tax to new money only. Ask your title agent. Do not count on it.
- A bigger cash-out means a bigger tax bill. Financing the taxes into the loan raises your balance too.
Florida Cash-out refinance estimate
The starting figures are an example value with a balance and a cash request in proportion. Replace them with yours.
Editable benchmark: 7.40% as of October 15, 2026 · Freddie Mac 30-year average via FRED®. A conventional market reference, not a cash-out refinance quote.
Illustrative starting assumptions: a $375,000 home value, a $206,000 current balance, the agency cap on a one-unit principal residence, a thirty-year term at the current Freddie Mac benchmark, and property taxes and insurance estimated at typical rates for Florida. Every field is editable.
Illustrative estimate only — not a Loan Estimate, approval, quote, or commitment to lend. The rate field carries the weekly Freddie Mac thirty-year conventional benchmark, a market reference and not a cash-out refinance quote; a cash-out loan is priced by the lender at lock. The cash available is the loan the program cap allows less the balances paid off, before closing costs, which are not included. The HELOC line is the program’s combined loan-to-value ceiling applied to the same value and balance. Taxes and insurance are editable estimates. Licensed in sixteen states for consumer mortgages.
What Are Florida Doc Stamps, in Plain English?
Doc stamps are a state tax on certain legal documents. The tax applies when a document is signed, delivered or recorded in Florida. Deeds are taxed. So are written promises to pay money, such as a promissory note, and the mortgage that secures it.
Doc stamps are not your annual property tax. They are a one-time closing cost tied to the paperwork.
On a mortgage, the Florida Department of Revenue says the tax is figured on the full amount of debt the mortgage secures. The rate is 35 cents per $100, or any part of $100. That “or portion thereof” language means the amount rounds up to the next $100 before the rate is applied.
Cash-out buyers often miss a second tax. The nonrecurring intangible tax is 2 mills, which means 0.002 times the secured amount. No rounding applies. The lender is the legal taxpayer, but it may pass the cost to you.
Add the two rates and you get about 0.55% of the loan. That is simple arithmetic on the two official rates, not a quoted fee. Your title company produces the actual figures.
Which Taxes Apply to Which Transaction?
Different transactions trigger different taxes. This table shows how a cash-out compares.
| Transaction | Deed tax | Mortgage taxes | Tax base |
|---|---|---|---|
| Purchase with a loan | Yes | Yes | Price and loan |
| Cash-out refinance | No | Yes | Full new loan |
| Rate-and-term refinance | No | Yes | Full new loan |
| Qualifying same-lender renewal | No | Possibly reduced | New money only |
A refinance has no deed tax because ownership does not change. You are not buying the house again.
Notice that cash-out and rate-and-term land in the same place. The tax runs on the secured amount, not on why you borrowed. Loan purpose changes your leverage and pricing. It does not change the tax formula.
Why Is the Whole Loan Taxed When Only Part Is New Money?
Because the old loan is paid off and a new one takes its place. The new note and the new mortgage are fresh documents. Each carries its own tax on the full amount.
It feels unfair. You already paid tax on the old loan. But the old note was retired, not extended.
Florida law does offer relief in one narrow case. Under Chapter 201 of the Florida Statutes, a renewal note that only continues the original debt is exempt. If the renewal increases the unpaid balance, the tax applies only to the increase.
Read that carefully. It requires a true renewal of the old obligation. A conventional cash-out loan usually works differently. A new lender pays off the prior servicer, and the old note is cancelled. Nothing is left to renew.
In a dispute between a bank and the state revenue department, Florida’s First District Court of Appeal addressed refinanced home loans in case no. 2024-0153. The court indicated a refinance may be exempt from both taxes to the extent it provides no new money. The stamp tax exemption needs a qualifying renewal. The intangible tax exemption needs a refinance with the same lender.
That was a lawsuit, not a rule written for every borrower. Treat it as a reason to ask, not a reason to expect.
How Is a Conventional Cash-Out Loan Built?
A cash-out refinance is a new first mortgage that pays off your existing mortgage and gives you cash. The Fannie Mae Selling Guide also treats a new first mortgage on a home you own free and clear as cash-out.
Across the wholesale programs these files go through, the main steps run in a consistent order. Our hub page on cash-out refinance programs covers the full program overview. Here is how the pieces fit with the tax.
1. Loan purpose is set. Paying off a first mortgage and taking cash makes it a cash-out. Only incidental cash back keeps it in the rate-and-term (limited cash-out) category.
2. Seasoning is checked. The mortgage being paid off should be at least 12 months old, counted note date to note date. At least one borrower should have been on title for 6 months. Exceptions exist for delayed financing, inheritance and legal awards.
3. The appraisal sets the leverage. On a one-unit principal residence, the conventional maximum is 80% loan-to-value (LTV, the loan as a share of the home’s value). Two- to four-unit principal residences, second homes and investment property top out at 75%. The Fannie Mae Eligibility Matrix lists these limits. Confirm the current version, since matrices get updated.
4. Underwriting reviews the whole file. Credit, income, debt ratios and reserves are all documented. A 620 decision score is the wholesale floor, and most files are governed by the automated finding with a 50% total ratio ceiling. Cash-out refinances also carry loan-level price adjustments. Those vary and are not quoted here.
5. Disclosure shows the taxes. They appear among government taxes and fees on your Loan Estimate and Closing Disclosure.
6. The closing agent collects and records. The agent calculates both taxes, collects them and pays the clerk when the mortgage is recorded.
One more lane is worth knowing about. A wholesale program reaches 89.99% LTV with no mortgage insurance at a 680 score and a 50% ratio. It applies to a thirty-year fixed on a primary residence at a conforming balance, with its own six months of seasoning. Subject to lender guidelines and full file review, of course.
How Do You Calculate Your Own Doc Stamps?
Start with the new loan amount. That is your payoff, plus the cash you take, plus any closing costs you roll in.
Then work in this order.
1. Round the new loan up to the next $100 for the doc stamp calculation. 2. Multiply that rounded figure by 0.35%. That is the doc stamp tax. 3. Multiply the exact loan amount by 0.002. That is the intangible tax. 4. Add the two. The sum is about 0.55% of the loan.
Here is how it scales. A loan 10% larger carries roughly 10% more tax. The relationship is a straight line. Every extra dollar of cash-out adds the same fraction to the tax.
The intangible tax has one extra rule. It is never figured on more than the fair market value of the Florida real property securing the loan. With leverage capped well below full value on a cash-out, that limit rarely bites.
Do financed costs raise the taxable amount?
Yes. If you roll closing costs and these taxes into the new loan, the balance rises, and so does the secured amount. The effect is small, but it is real.
Rolling costs in also lifts your LTV. On a cash-out already near the 80% limit, that matters. The net cash you receive ends up smaller than the headline number.
Where Does the General Rule Break?
Most of the tax story is simple. These edge cases are where it turns.
Same-lender renewal. If the structure qualifies as a renewal, tax may run only on the increase. The old note with proof of tax paid has to be attached when the new mortgage is recorded. Whether that works is a decision for your closing agent or title counsel.
Free-and-clear homes. No old note exists, so there is nothing to renew. The full new loan is taxed.
Delayed financing. A cash-out within six months of buying is possible only under listed conditions, including an arm’s-length original purchase. The taxes still apply to the new loan.
Lines of credit. A home equity line is a different instrument. The state treats the full line as the base for the intangible tax. That is its own topic.
Jumbo loans. Above the conforming limit, the same two taxes apply to a larger base.
What Mistakes Do Borrowers Make?
Thinking the tax is capped. The note cap covers notes only. The state revenue department is explicit that a recorded mortgage has no cap. A conventional loan is secured by a recorded mortgage. So the tax keeps scaling with the loan.
Mixing up the two taxes. Doc stamps and the intangible tax have different statutes, different rates and different bases. One does not replace the other.
Assuming the lender pays the intangible tax. The lender is the taxpayer, but it may pass the cost to you.
Assuming every refinance is taxed on new money only. It depends on the structure. A new lender paying off your old one generally means full-loan tax.
Expecting a deed tax. A refinance does not transfer the deed, so deed stamps do not apply.
Lendmire does not set the tax. Florida law does.
What Does the Decision Look Like in Practice?
Picture a homeowner who wants cash for a remodel. The question is whether the extra tax and the higher balance are worth it.
First, size the cash need. Every extra dollar borrowed adds about 0.55 cents of tax. The tax is a cost of the whole loan, so it also applies to the part of the balance that was already there.
Next, weigh the alternative. Keeping your current loan and adding a second lien or a line of credit may reduce the taxed amount to the new borrowing. But a second loan brings its own terms and its own costs. Compare them side by side.
Then ask your title agent three things.
- What is the total of both state taxes on the full new loan?
- Does any renewal or same-lender exemption apply to this structure?
- Where do these taxes appear on my closing paperwork?
Where Florida’s mortgage taxes sit on the disclosure depends on how the closing agent codes them. Section E of the form, covering taxes and other government fees, is where to look. The CFPB’s rule on the Loan Estimate describes that section.
Tax treatment can depend on your situation; borrowers should speak with a qualified tax professional before relying on any deduction or credit.
Key Terms Defined
Documentary stamp tax: A one-time Florida tax on recorded documents, charged on a mortgage at 35 cents per $100 of the secured debt.
Nonrecurring intangible tax: A separate Florida tax of 2 mills on the amount a mortgage secures, paid when the mortgage is recorded.
Cash-out refinance: A new first mortgage that pays off your old one and gives you cash from your home equity.
Loan-to-value (LTV): The loan amount divided by the home’s appraised value.
Seasoning: The waiting period a lender wants before you can refinance, such as 12 months on the existing loan.
Renewal: A new note that only continues the old debt. Under Florida law, a renewal that adds no new money can be exempt from tax.
Closing agent: The title or settlement company that collects the taxes at closing and sends them to the county clerk.
Frequently Asked Questions
Do I pay doc stamps again when I do a cash-out refinance?
Yes, in most conventional cases. The new note and mortgage are new documents, so the state taxes them on the full new loan. A same-lender renewal can sometimes limit the tax to new money, but that structure is uncommon on loans sold to the agencies. Ask your title agent before you assume either outcome.
Is there a cap on Florida doc stamps for a mortgage?
No. The cap applies to promissory notes, not to a mortgage filed in Florida. Because your conventional loan is secured by a recorded mortgage, the tax scales with the loan amount.
Who pays the doc stamps and the intangible tax?
The borrower usually pays at closing, though the law makes all parties to the document liable. The lender is the legal taxpayer for the intangible tax and may pass it on. Your closing agent collects both and pays them to the clerk at recording.
Can I roll the taxes into my new loan?
Often, yes. Financing closing costs is generally an acceptable use of cash-out proceeds, subject to lender guidelines. Remember that this raises the loan amount, your LTV and the interest you pay over time. It also shrinks your net cash.
Does a rate-and-term refinance avoid these taxes?
No. The tax runs on the secured amount regardless of the loan’s purpose. A rate-and-term refinance and a cash-out refinance follow the same formula, and the exemption analysis is the same for both.
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. Lendmire is a mortgage broker, so lenders review and approve each file. Program details are subject to lender guidelines, and nothing here is a commitment to lend.
For your own numbers, request a scenario review with Lendmire.
About Lendmire
Lendmire is a mortgage brokerage (NMLS# 2371349) licensed for consumer mortgage lending in 16 states, arranging FHA, VA, conventional and jumbo purchase and refinance loans through a wholesale lending network. Eligibility is determined by the lender on each file. 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 Statutes, Chapter 201
4. Florida First District Court of Appeal, Opinion in Case No. 2024-0153
5. Fannie Mae Selling Guide B2-1.3-03: Cash-Out Refinance Transactions
6. Fannie Mae Eligibility Matrix
7. CFPB’s rule on the Loan Estimate
This article is part of Lendmire’s Conventional Loans series — every loan program’s qualification details, guidelines, and scenarios live on the loan options page.
Related reading: Conventional Cash-Out Refinance Use of Proceeds Rules for Any Purpose · Can a Homeowner Get a Conventional Cash-Out While a Divorce Is Pending? · Conventional Cash-Out Seasoning Rules for a Free-and-Clear Homeowner
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.