The Quick Read: The Miami-Dade “surcharge” is a county surtax on deeds, and a cash-out refinance on a home you already own does not record a deed. A Florida refinance does carry a different state tax on the new note and mortgage, and that tax grows with the loan balance. The county surtax and the note tax are separate charges. Mixing them up is a common source of confusion.
Key Takeaways
- The surtax Miami-Dade adds sits on documents that transfer real property. It is not due on a document that transfers only a single-family dwelling, per the Florida Department of Revenue.
- A cash-out refinance keeps the same owner on title, so no deed is normally recorded. That reading comes from how the tax is built. Confirm it with a Florida title or closing attorney on your file.
- The new loan does carry a state tax on the note, plus a separate state intangible tax on the new mortgage.
- Those taxes are measured on the full new loan, not only the cash you pull out.
- Conventional cash-out leverage is capped at 80% LTV on a one-unit primary residence, subject to lender guidelines and full file review.
What Is the Miami-Dade “Surcharge,” Exactly?
The surcharge is a deed-side tax. Florida taxes documents that transfer property, and Miami-Dade stacks a county surtax on top of that transfer tax. The Department of Revenue says the surtax is not due when the document transfers only a single-family dwelling. Miami-Dade County’s housing page says the same thing: transfers of single-family residences are exempt.
So the word “surcharge” points at a deed. It does not point at your mortgage. Plenty of online calculators blur that line, and homeowners end up believing every Miami-Dade loan carries an extra county add-on. That is a myth. The county surtax lives on the deed side of the ledger.
Here is the catch, though. Your closing still has state taxes on it. They just come from a different document.
What a Cash-Out Refinance Does Trigger
A cash-out refinance replaces your current first mortgage with a new, larger one on the same house. You walk away with the difference. Fannie Mae’s Selling Guide section B2-1.3-03 defines it as paying off existing mortgage loans with a new first mortgage on the same property. The guide lists acceptable uses of the proceeds: paying off the first mortgage, financing closing costs, points and prepaid items, and taking equity out for any purpose.
Since you stay on title, the deed tax and county surtax are not the story. The new debt is. Here is the map:
| Tax | Triggered by | What it measures | Who usually pays |
|---|---|---|---|
| Deed tax | A recorded deed | Sale price or consideration | Seller, in a sale |
| County surtax | A deed (not single-family-only) | Same base as the deed | Varies by contract |
| Note tax | The new promissory note | Full new loan amount | Borrower |
| Intangible tax | The new recorded mortgage | Full new loan amount | Borrower |
The Department of Revenue’s form DR-228 sets the note tax per $100 of the obligation, or portion thereof. “Or portion thereof” means the amount rounds up to the next $100 unit. The form also sets a limit on the tax for standalone notes. Whether that limit reaches a note secured by a recorded mortgage is a question for your closing attorney, not something to assume.
The intangible tax is a separate state tax on a new mortgage secured by Florida real property. Think of it as the second line on the same bill.
Both taxes ride on the whole new note. They are not charged only on the extra cash. A larger cash-out means a bigger new balance and a bigger tax. That is the real state-tax tradeoff in this decision.
If you are comparing cash-out refinance programs, keep that scaling in mind. Equity you leave in the house does not add to the tax. Equity you pull out does.
How the Loan Is Underwritten, Step by Step
Underwriting a conventional cash-out follows a fixed order. Across the wholesale programs Lendmire places files with, the sequence looks like this.
Step 1: Occupancy and ownership. For a primary-residence cash-out, Freddie Mac’s Guide section 4301.5 requires all borrowers to occupy the property. It also sets a six-month ownership requirement, with an exception table for borrowers not on title that long. Fannie Mae uses the same six months of title seasoning.
Step 2: Loan seasoning. The first mortgage being paid off must be at least 12 months old, counted note date to note date. Exceptions exist, including delayed financing for cash buyers, inheritance and legal awards.
Step 3: Appraisal. Freddie Mac’s cash-out product page calls for a new appraisal and inspection report. The appraised value sets your LTV, which is the loan balance divided by the home’s value.
Step 4: Leverage cap. The conventional ceiling is 80% LTV on a one-unit primary residence. Two- to four-unit primary residences, second homes and investment properties top out at 75%. One sentence settles the occupancy question: how you use the house decides how much equity you can reach. Terms depend on the lender’s guidelines, the property type, the leverage, and a full review of the credit profile.
Step 5: Credit and ratios. Wholesale conventional programs start at a 620 decision score. The automated finding governs most files, with a total debt ratio ceiling of 50%. The Fannie Mae Eligibility Matrix adds a wrinkle: minimum reserves apply on cash-out files run through automated underwriting when the debt-to-income ratio is above 45%. Reserves are savings left in the bank after closing.
Step 6: Size the new loan. The new balance covers the payoff of your current first mortgage, any other liens being paid, closing costs you choose to roll in, and the cash-out itself. That balance is the base for the state taxes.
Step 7: Disclosure and recording. The state taxes show up on your Loan Estimate and Closing Disclosure in the taxes-and-government-fees area. Because the charge depends on the loan amount, it behaves like a transfer-type tax on those forms rather than a flat recording fee. How your settlement agent itemizes it is their call, so read the line items. The closing agent then records the mortgage and remits the tax.
Structures and Variations
Not every borrower wants the same loan. Three structures come up most often.
Standard cash-out. The 80% LTV path described above. It suits a homeowner with a solid score, a seasoned loan and real equity to tap. The exact numbers vary by lender and program and follow a full review of property, leverage, and credit.
The no-mortgage-insurance wholesale lane. One wholesale lane reaches 89.99% LTV with no mortgage insurance. It needs a 680 score and a 50% ratio on a thirty-year fixed loan. It is limited to a primary residence at a conforming balance, with its own six months of seasoning. Subject to lender guidelines, it can fit a borrower who wants more equity than 80% allows.
Rate-and-term instead. A rate-and-term refinance, also called limited cash-out, pays off your first mortgage, closing costs and a purchase-money second lien. Only incidental cash comes back. It reaches 95% LTV on a one-unit primary residence. If you only need a better loan structure, this route avoids tapping equity. It still creates a new note, so the same note-side state taxes apply to the new balance. Final terms depend on the lender’s guidelines, the property type, and the borrower’s complete credit picture.
Of these three, mortgage insurance applies only to the rate-and-term structure, and only on the part of the loan above 80% LTV. The standard cash-out stops at 80%, and the wholesale lane reaches 89.99% with no mortgage insurance at all. Where mortgage insurance does apply, you can request cancellation at 80% of the original value with good payment history, and the servicer must end it automatically at 78%. Each figure is subject to lender guidelines and a complete review of property type, leverage, and credit.
Where the Rule Breaks: Edge Cases
The “no deed, no deed tax” idea holds for a plain refinance. Several situations bend it.
- Adding or removing a borrower. Changing who is on title can require a deed. A deed brings the deed-side taxes into play, and whether the single-family exemption applies depends on the property. The Department of Revenue notes that spouse-to-spouse transfers of homestead property can be exempt when the only consideration is the mortgage. Ask your attorney before you sign anything.
- Condos and multi-unit homes. The surtax exemption names a single-family dwelling. How a condo or a two- to four-unit property is classified is a deed question. Send it to a Florida title attorney.
- Trusts and LLCs. A title change into a trust or entity can mean a recorded deed. Sort it out before the refinance, not during it.
- Buying out a co-owner. Freddie Mac’s special purpose cash-out requires the borrower and co-owner to have owned jointly for 12 months before application. Inherited interests are exempt.
- Delayed financing. A cash buyer can refinance inside the six-month window if the purchase was arm’s-length and the source of funds is documented. Fannie Mae’s guide spells out the conditions.
- Free-and-clear homes. A new loan on a house with no mortgage is treated as cash-out by both agencies.
- Ineligible structures. Loans with a temporary buydown and certain PACE situations are not eligible under the Fannie Mae guide.
Why Calculators Mislead
Deed-oriented calculators are built for buyers and sellers. Drop a loan amount into one and it may show a county surtax line that has nothing to do with your note. Watch for three tells:
1. The tool asks for a “sale price” when you are not selling.
2. A county surtax line appears next to a loan amount.
3. The tool never mentions the note or intangible taxes.
If you see those, you are looking at a purchase tool. Ask your closing agent for the itemized figures instead, and compare them to the Loan Estimate.
What the Decision Looks Like in Practice
Picture a Miami-Dade homeowner with a single-family house, a first mortgage past its first birthday and a decent amount of equity. She wants cash for a renovation. The county surcharge does not touch her. The state taxes on the new note and mortgage do, and they scale with the full new balance.
So her real choices are about size and structure. Does she pull the full 80% LTV or leave a cushion? Does she roll closing costs into the loan? Rolling them in raises the balance, the LTV and the monthly payment, and it raises the loan-based taxes too. Paying them from savings keeps the balance smaller. Neither is right for everyone. Leverage, reserves, and pricing vary by lender and program; the final terms follow the full file review.
A second homeowner wants to add a spouse to the title during the refinance. That one needs a deed, and the deed-side rules enter the picture. It is a different file with a different cost map.
Tax treatment can depend on your situation; borrowers should speak with a qualified tax professional before relying on any deduction or credit.
The best next step is a short checklist: confirm title seasoning, confirm the age of your first mortgage, decide on cash-out versus rate-and-term, and ask your closing attorney whether a deed is part of the plan. 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.
Key Terms Defined
Doc stamp tax: Florida’s tax on certain recorded documents, charged per $100 of the amount, rounded up.
Surtax: An extra county tax added on top of a base tax. Miami-Dade’s applies to deeds.
Note tax: The state tax on the promissory note, measured on the full new loan.
Intangible tax: A separate state tax on a new mortgage secured by Florida real property.
Seasoning: The time you must hold title or the loan must have existed before a new cash-out loan is allowed.
LTV: Loan-to-value. The new loan balance divided by the appraised home value.
Frequently Asked Questions
Does Miami-Dade charge its surtax on a cash-out refinance?
Not as a deed-side item, because a refinance normally records no deed. You remain on title. The county surtax belongs to documents that transfer property, and single-family-only transfers are exempt anyway. Your closing agent can confirm how your specific transaction is handled.
Is the state tax charged only on the cash I take out?
No. The note tax and intangible tax apply to the full new loan amount. That includes the payoff of your old mortgage, any rolled-in costs and the cash-out. A bigger cash-out raises the balance and the tax together.
Can I finance these taxes into the new loan?
Closing costs can be financed under the agency guide, including points and prepaid items. That raises your balance, your LTV and your payment, so it carries a tradeoff. Whether a given cost is rolled in depends on the lender, the program and your LTV cap.
Does a condo or duplex change the answer?
It can, mostly if a deed is involved. The surtax exemption names a single-family dwelling, and how other property types are classified is a question for a Florida title attorney. On leverage, two- to four-unit primary residences and second homes cap at 75% on a cash-out.
How soon after buying can I do a cash-out refinance?
You need six months on title, and the first mortgage being paid off must be at least 12 months old. Delayed financing is the named exception for cash buyers. Subject to lender guidelines and full file review.
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.
For the program’s current guidelines, see conventional loan programs.
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References
1. Florida Department of Revenue: Documentary Stamp Tax
2. Miami-Dade County’s housing page
3. Fannie Mae Selling Guide B2-1.3-03, Cash-Out Refinance Transactions
4. Florida Department of Revenue: Form DR-228
5. Freddie Mac Seller/Servicer Guide, Section 4301.5
6. Freddie Mac Cash-out Refinance product page
7. Fannie Mae Eligibility Matrix
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: How Much Cash a Conventional Cash-Out Releases on a 2-4 Unit Home · Can You Get a Conventional Cash-Out Refinance on a Vacation Home? · Conventional Cash-Out Requirements for a Live-in 2-4 Unit Home
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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Compliance and disclosures. Lendmire (NMLS# 2371349) is a licensed mortgage broker and is not a direct lender, depository institution, financial advisor, or tax professional. Content in this article is general market analysis and educational information — not financial, legal, or tax advice for any specific situation. Lendmire does not guarantee loan approval; every transaction is subject to underwriting by the funding lender. Mortgage pricing and loan program guidelines are subject to change at any time without notice and vary by borrower characteristics, property type, and state regulations. Lendmire complies with Equal Housing Opportunity. Licensure verification: NMLS Consumer Access.