The Quick Read: Yes, in the ordinary case. A Florida VA cash-out refinance is a new loan secured by a new recorded mortgage, and the state taxes the whole new debt, not just the cash you take home. That covers the payoff of the old lien, the cash to you, and any funding fee rolled into the loan. VA status does not exempt you from these state taxes.
What Are Doc Stamps, Exactly?
Doc stamps are Florida’s documentary stamp tax. The state charges it on certain legal documents, and a home loan produces two of them: the promissory note and the recorded mortgage. On a refinance there is no new deed, so there is no deed stamp. The tax lands on the new debt instead.
Florida also charges a second, separate tax on the same loan. It is called the nonrecurring intangible tax, and it is a one-time charge when the mortgage is recorded. Many borrowers lump the two together. They are different taxes under different chapters of Florida law.
| Item | What it taxes | Basis |
|---|---|---|
| Doc stamps on the note | The promissory note | Full amount of the obligation |
| Doc stamps on the mortgage | The recorded mortgage | Full amount secured |
| Intangible tax | Debt secured by Florida real property | Secured amount, 2 mills |
The Florida Department of Revenue sets the doc stamp rate at 35 cents per $100 of the debt, or portion thereof. That “portion thereof” wording means the amount rounds up to the next $100.
Why Is the Whole Loan Taxed, Not Just the Cash?
Because a VA cash-out is a brand-new loan, and the tax follows the loan. Think of it this way: the state does not ask how much of the new note is “new money.” It asks how big the debt is. The note carries the payoff of your old mortgage, your cash, and any financed funding fee, so all of it is the tax base.
Here is the mechanic, step by step:
1. The VA cash-out refinance pays off your existing lien, whatever type of loan it was.
2. You sign a new note and a new mortgage for the full new amount.
3. The new mortgage is recorded in the county.
4. Florida’s taxes are collected at recording, and they show on your closing statement.
The funding fee point is worth stating carefully. Florida’s wording is “the full amount of the indebtedness,” and a financed fee becomes part of that debt. That is the logical reading, though no agency page spells it out for VA loans specifically. Your title agent can confirm how it was calculated on your file.
The VA cash-out reaches up to 100% of the appraised value, including the financed funding fee. Because the loan can run that high, the taxed amount can be large. The tax is figured on the final loan amount, not on what the house appraised for.
Does the $2,450 Cap Apply?
Not to the mortgage. This is a common mistake in online calculators. The Department of Revenue says the $2,450 cap applies to the tax on notes, and that there is no cap on the tax due on a mortgage. A recorded mortgage securing a home loan is therefore taxed on its full amount.
So if a calculator tells you the doc stamp bill stops at $2,450, be skeptical. That figure describes only one piece of the bill. Ask your title agent for the actual line items.
Does VA Status Change the Bill?
No. Here is the short answer, and it surprises many veterans. VA rules do not shield you from Florida’s taxes. They treat recording taxes as a cost the veteran may pay.
Under 38 CFR Part 36, Subpart B, a veteran may be charged reasonable and customary recording fees and recording taxes. VA’s own circular on allowable charges, VA Circular 26-24-19, lists recording taxes, including the intangible tax, as an itemized charge. The lender has to support that charge with an invoice or similar document, such as a recorded deed showing the cost of recording. It cannot charge more than the actual amount.
If you read a line somewhere about a “partial exemption” for VA loans, ask for the statute. Without one, do not count on it.
Three Exemptions People Confuse
- The funding fee waiver. Veterans receiving compensation for a service-connected disability, and the other exempt groups, do not pay the VA funding fee. That is all it removes. The VA page on the funding fee and closing costs says the fee is separate from other closing costs.
- Property tax relief. Some disabled veterans have property tax benefits. That is a separate benefit and has no bearing on the taxes charged at recording.
- Doc stamp exemption. For a standard VA cash-out, none that we know of.
How the Funding Fee Interacts With the Taxed Amount
The funding fee is a one-time VA charge that can be financed into the loan. On a cash-out refinance, across the wholesale programs we place VA files with, it runs 2.15% for first use and 3.3% for subsequent use. It is waived for exempt veterans.
When the fee is financed, the loan balance rises, and so does the amount Florida taxes. The effect is modest on a per-dollar basis, but it is real. If you are exempt, you skip both the fee and the tax that would have applied to it.
One more limit matters here. The VA cash-out can reach 100% of the appraised value including the financed fee. Closing costs that get rolled in eat into the same ceiling. When taxes and costs take up equity room, the cash that reaches you gets smaller. Plan for that rather than assuming the full equity number lands in your account.
A Scenario in Percentages
Picture a Florida veteran who owns a home with a conventional loan and wants cash for repairs. Say the new VA loan is set at the maximum allowed, 100% of the appraised value, with the funding fee financed inside that limit. The existing loan is paid off first, and the rest goes to the veteran.
Three different tax bases are possible in theory:
| Tax base | Used by Florida? |
|---|---|
| Full new loan | Yes |
| Cash-out portion only | No |
| Loan minus financed fee | No |
Only the first matches how the state taxes a new note and a new mortgage. The common belief that stamps apply only to the “new money” fails because the old payoff is carried by the same new note.
Who Pays, and When?
Doc stamps and the intangible tax are due when the mortgage is recorded. On the intangible tax, the lender is the legal taxpayer under Florida Statutes Chapter 199, but the cost may be passed to the borrower. The tax is 2 mills, meaning the secured amount times 0.002, and it applies only to the extent the debt is secured by Florida real property.
Because this is a consumer mortgage, you should see these charges on your Loan Estimate and again on the Closing Disclosure. Compare the two. If a figure moves, ask why. The numbers scale with the loan amount, so a larger cash-out raises them. They are one-time costs, not recurring ones.
Lenders may also finance these costs into the loan, which raises the balance and the monthly payment. That tradeoff is yours to weigh.
When Could a Refinance Be Exempt?
Rarely. Florida does exempt true renewals, but the conditions are tight. A renewal must only extend the original obligation, be signed by the original borrower, and have the original stamped note attached. The Department’s advisement TAA 90M-003 says a refinancing outside that relationship is taxed on the entire obligation. A separate advisement, TAA 88M-007, says a renewal that enlarges the debt does not qualify as exempt.
Most VA cash-outs pay off a loan held by a different lender. That is a new loan, and the full amount is taxed. A cash-out also enlarges the debt by design. Do not count on a carve-out unless a Florida title agent or the Department confirms it for your file.
A few other edge cases:
- No cash out. A Type I refinance, where the new loan does not exceed the payoff, is still a new note. The same tax logic applies.
- Lines of credit. A HELOC is taxed on the maximum secured amount, which is why some veterans compare the two products. A HELOC is not a VA product.
- Leasehold. A note secured by a leasehold mortgage may face doc stamps but not the intangible tax.
- Multi-state collateral. Tax can be prorated for the Florida share. This is rare for a homeowner.
Cash-Out vs. IRRRL vs. Conventional
| Feature | VA cash-out | IRRRL | Conventional cash-out |
|---|---|---|---|
| New note and mortgage | Yes | Yes | Yes |
| Florida taxes apply | Yes | Yes | Yes |
| VA appraisal | Yes | No | No (lender appraisal) |
| Funding fee | 2.15% first use | 0.5% | — |
The IRRRL is VA’s streamlined refinance of an existing VA loan. It is still a new note, so Florida taxes it too. The state taxes the debt, not the loan type. What differs is the VA requirements: seasoning, a net tangible benefit, and, per VA Circular 26-19-05, loan comparison disclosures. Type I loans also carry a 36-month limit on recouping fees in a VA-to-VA refinance.
Key Terms Defined
- Doc stamps: Florida’s documentary stamp tax, charged on the note and the recorded mortgage.
- Intangible tax: a separate one-time Florida tax on debt secured by Florida real property.
- Funding fee: a one-time VA charge, reviewable, waived for exempt veterans.
- Type I and Type II: VA labels for cash-outs. Type I does not exceed the payoff; Type II does.
- Renewal exception: a narrow exemption for notes that only extend the original debt.
What to Ask Your Closing Agent
Before you sign, ask these:
1. What loan amount is each tax calculated on?
2. Does that amount include the financed funding fee?
3. Is the intangible tax shown as a borrower charge?
4. Can you show the invoice or recording support for each tax, as VA requires?
5. Does any renewal exception apply here?
Florida’s rates and caps can change, so confirm the current figures with the Department of Revenue. Program details here are subject to lender guidelines and full file review, and nothing here is a commitment to lend.
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. You can start with its VA cash-out refinance program page. For readers comparing equity products, Lendmire’s piece Does an Out-of-State Owner Pay Florida Doc Stamps on a Full Rental HELOC? shows how the same tax logic plays out on a credit line.
Frequently Asked Questions
Do I owe doc stamps only on the cash I take out?
No. Florida taxes the full new note and the full secured mortgage. The portion that pays off your old loan is inside the same new debt, so it is part of the base.
Is the doc stamp tax capped at $2,450?
Only on the note. The Department of Revenue says no cap applies to the tax on a recorded mortgage. A calculator that stops at $2,450 for a secured home loan understates the bill.
Does my disability-based funding fee waiver cover Florida taxes?
No. The waiver removes the VA funding fee only. Closing costs remain, including doc stamps and the intangible tax.
Is the intangible tax the same as doc stamps?
No. It is a separate 2-mill tax under a different chapter of Florida law. It is due at recording, and the lender, as taxpayer, may pass it on to you.
Can I avoid the tax by refinancing with my current lender?
Usually not. The renewal exception is narrow. It requires that the debt not be enlarged and that the original stamped note be attached, and a cash-out enlarges the debt.
For your own numbers, request a scenario review with Lendmire.
About Lendmire
Lendmire (NMLS# 2371349) is a mortgage brokerage serving homeowners and home buyers in 16 states. FHA, VA, conventional and jumbo purchase and refinance loans are arranged through wholesale lending channels; Lendmire brokers the financing and the lender underwrites each application. 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. 38 CFR Part 36, Subpart B (eCFR)
4. VA: Funding fee and closing costs
5. Florida Statutes Chapter 199
6. TAA 90M-003
7. TAA 88M-007
This article is part of Lendmire’s VA Loans series — every loan program’s qualification details, guidelines, and scenarios live on the loan options page.
Related reading: VA vs Conventional Cash-Out Requirements for a Veteran · Can a Veteran Use a VA Cash-Out to Fund the Next Home After a PCS? · Can a Veteran With Thin Credit Get a VA Cash-Out at Full Value?
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.