The Quick Read: Usually yes, and on the whole new loan, not just the cash you take out. A VA cash-out writes a brand-new note and a new recorded mortgage. Florida taxes both on their full amount. One narrow renewal exception exists, but it rarely fits a VA refinance.
Why “New Money Only” Is the Wrong Mental Model
Most homeowners picture a cash-out as two pieces: the old balance and the new cash. They assume the state taxes only the new cash. That is not how the paperwork works.
A VA cash-out does not add to your old loan. It pays the old loan off and replaces it. The new lender gets a new promissory note (your written promise to repay) and records a new mortgage against the home. Florida’s documentary stamp tax attaches to those documents. It is measured on the amount of the obligation, and the obligation is the whole new balance.
Think of it like a moving truck. You pay by the trip, not by how much new furniture you bought. The payoff of your old loan rides in the same truck as your cash.
The new balance on a VA cash-out has up to three parts:
- The payoff of the loan being replaced.
- The cash you receive, if any.
- The VA funding fee, if you pay it by financing it.
All three sit inside the single new note. That whole amount is what gets taxed.
The tax scales with the loan. A bigger balance means a bigger charge. It is an upfront closing cost, and it surprises people who budgeted for a fee on “just the equity.”
On how much of your home’s value a VA cash-out can reach: the VA cash-out can go to 100% of the appraised value, including the financed fee. The financed fee is the only item that can sit on top of the payoff. The VA’s VA cash-out refinance program page lays out how that structure works. The higher the loan, the more the tax matters. If you borrow near the ceiling, the tax comes out of your cash, not out of thin air.
Key Terms Defined
Several terms come up again and again. Here they are in plain words.
Documentary stamp tax (doc stamps): A Florida tax on certain legal documents. On a refinance, it applies to the new note and the new mortgage.
Intangible tax: A separate Florida tax charged on the recorded mortgage. It is a different tax from doc stamps. People confuse the two.
Recording fees: Charges the county collects to put your mortgage into the public record. They are a flat service charge. They are not a tax on the loan amount.
Obligor: The person who signed the note and owes the debt. This word matters later, in the renewal exception.
Funding fee: A one-time VA charge that most borrowers can finance into the loan. Exempt veterans do not pay it.
Net tangible benefit: A VA test every cash-out must pass. The refinance has to give you a real, documentable gain.
Three Different Charges, Three Different Jobs
Doc stamps, the intangible tax and recording fees all show up on a Florida refinance. They get lumped together. They shouldn’t be.
| Charge | What it is | What it is based on |
|---|---|---|
| Doc stamps on the note | State tax on the promise to pay | The amount of the note |
| Doc stamps on the mortgage | State tax on the recorded lien | The amount the mortgage secures |
| Intangible tax | Separate state tax on the mortgage | The amount secured |
| Recording fees | County service charge | Pages and filing, not loan size |
Notice what is missing: a tax on the deed. A deed tax applies when ownership changes hands. In a refinance, the owner stays the same. No new deed, no deed tax. (That is why a refinance costs less in transfer charges than a purchase does.)
Now compare transactions side by side.
| Transaction | Deed tax | Note and mortgage tax | Taxed base |
|---|---|---|---|
| Purchase | Yes | Yes | Price for the deed; loan for the note |
| Cash-out refinance | No | Yes | Full new loan |
| Rate-and-term refinance | No | Yes | Full new loan |
| Second lien | No | Yes | The second lien alone |
The takeaway is simple: a refinance is not tax-free just because you already own the house.
What the Law Actually Says
Florida taxes written obligations to pay money at 35 cents for each $100, or fraction of $100, of the obligation. Recorded mortgages are taxed at the same rate. The Florida Department of Revenue explains that the tax is due on the full amount of the obligation on the taxable document. It is paid to the county clerk or recording official when the document is recorded.
Two details trip people up.
First, the per-$100 rate means the tax is a straight multiple of the balance. Double the loan and you double the tax. Skip any hunt for a hidden discount.
Second, Florida has a ceiling on the tax for notes and written obligations. That ceiling is stated for notes, and a recorded mortgage is taxed on the amount it secures. Do not assume the ceiling protects a large VA mortgage. Ask your closing agent how it applies to your documents before you count on it.
The One Exception: A True Renewal
Florida law carves out one path to “tax on the increase only.” It sits in Florida Statute 201.09. A renewal note that only continues the original obligation is not taxed again as new. If the renewal increases the unpaid balance, tax is due on the increase.
Here is the catch. The conditions are strict.
- The renewal must be signed by the same person who signed the original note.
- The original note must be attached, with the required notation.
- Nothing can enlarge the obligation beyond the stated increase.
- No new or added obligor can come in.
Adding or removing a borrower defeats the exemption. The statute requires the same obligor and the same mortgagor.
This path generally depends on the existing note holder modifying or renewing the existing note. A VA cash-out does something else. A new lender pays off the old loan and writes its own new note. That structure does not look like a renewal.
Does the exception ever reach a VA refinance? A VA cash-out does not get this treatment automatically. Ask your closing agent how the transaction is structured. If someone tells you the tax will be on new money only, ask them to show you the renewal structure in writing.
Florida also lists changes that are not taxable renewals. These include consolidating debt, substituting a new mortgagee, and adding or removing guarantors. They show how narrow the renewal idea is.
How a VA Cash-Out Changes the Picture (and Doesn’t)
VA rules do not remove Florida’s tax. They address who may pay it.
Under 38 CFR 36.4313, the veteran may pay recording fees and recording taxes. The rule also covers charges incident to recording. So the tax is allowable. It simply lands on you.
That is a common surprise. “VA loans are exempt from Florida taxes” is a myth. The federal rule says you may be charged recording taxes. It does not erase them.
Another myth: that the lender’s flat fee covers government taxes. It does not. Recording taxes are separate itemized charges. The flat origination fee covers origination costs.
Here is how the rest of the VA structure touches the tax:
- Leverage. On VA cash-outs, the wholesale programs I work with allow up to 100% of the appraised value, including the financed funding fee. Under the federal cash-out rule, the new loan may not exceed 100% of VA’s reasonable value, and any amount over it is paid in cash at closing. An older, lower limit is gone. Some lenders still set a lower cap of their own.
- Funding fee. For a cash-out, the fee is 2.15% on first use and 3.3% on later use. Veterans who receive compensation for a service-connected disability, and the other exempt groups, are waived. Financing the fee makes the note bigger. A bigger note means more tax. An exempt veteran has a smaller base.
- Where the tax is paid from. In a cash-out, allowable fees can come out of your proceeds. The funding fee is the only item that can raise the loan amount. So the tax usually reduces your net cash rather than adding to the loan.
- Credit and underwriting. Wholesale programs generally start at a 580 decision score. Residual income, meaning what is left each month after bills, is the controlling test. The 41% debt-to-income figure is a guideline, not a cap. All of this is subject to lender guidelines and full file review.
- Seasoning and benefit. The cash-out carries seasoning of the later of 210 days from your first payment and your sixth payment. It also carries a net tangible benefit test.
Practitioner note: on files with a high payoff and a modest cash request, the tax can eat a surprising share of the proceeds. When a borrower is trying to net a specific amount, that math should be run early, with the closing agent’s figure in hand. Estimating from a rule of thumb is how people come up short at the table.
A Worked Example, in Words
Take a Florida veteran with a first-use funding fee who refinances the current home. The numbers below are shares of the new loan. No dollar figures are used.
| Piece of the new loan | In the taxed base? |
|---|---|
| Payoff of the old loan | Yes |
| Cash out to you | Yes |
| Financed funding fee | Yes |
| Closing costs paid from proceeds | They reduce your cash; they do not add to the base |
The taxed base is the full new note.
Now the “new money only” version. If the tax applied only to the cash you take out, the payoff would drop out of the base. It does not drop out. The old balance is rewritten into a new note, so it is taxed again.
Why does that feel unfair to long-time owners? Because they paid the tax once already, on the loan they are now replacing. Florida does not give a credit for that old tax on a standard new-lender refinance. The exception is the renewal path above, and it generally needs the existing holder.
Who Pays, Who Collects, and Where It Shows Up
Under VA rules the veteran may pay the recording taxes. The closing or title agent collects the tax and delivers it to the county when the documents are recorded.
You will see these lines on your paperwork. The Loan Estimate and the Closing Disclosure list recording fees and other taxes in Section E, “Taxes and Other Government Fees.” The CFPB explains that section. It also notes that recording charges and certain other settlement services generally cannot rise more than 10% in total between estimate and closing.
Lenders must back up itemized fees with an invoice or a document that verifies the charge. They may not charge more than the actual amount.
One more point on timing. The tax is due when the documents are recorded, so it is part of the closing costs you settle at the table.
Common Mistakes and Myths
A short list of the errors I see most.
1. “Doc stamps only apply to the cash I take out.” Not generally. The tax follows the full new obligation.
2. “VA loans are exempt from Florida taxes.” No. The rule lets the veteran pay recording taxes. It does not remove them.
3. “A refinance triggers deed doc stamps.” Not when the owner stays the same. The tax is on the note and the mortgage.
4. “The ceiling protects my big mortgage.” Do not count on it. A recorded mortgage is taxed on what it secures.
5. “The intangible tax and doc stamps are the same thing.” They are not. Two taxes, two lines.
6. “My old tax carries over.” Only a true same-obligor renewal can do that. A new-lender payoff generally does not.
Each one gets a borrower to the closing table with the wrong number in mind.
How to Confirm Your Number
You do not need to calculate this yourself. The closing or title agent will. Your job is to ask the right questions.
- Is the tax being calculated on the full new note and the full mortgage?
- Is the funding fee, if I finance it, inside the taxed amount?
- Is the intangible tax shown on a separate line?
- Does any renewal or same-holder structure apply here, and if so, what does the paperwork require?
- Does the total match the Section E lines on my Loan Estimate?
If the answer to the renewal question is “no,” you have the standard result. The tax applies to the whole new loan.
Also compare the Loan Estimate to the Closing Disclosure. A change that stays inside the tolerance is normal. A large jump is a reason to ask why.
If you are thinking about the tax angle for your return, tax treatment can depend on your situation; borrowers should speak with a qualified tax professional before relying on any deduction or credit.
Frequently Asked Questions
Do I owe doc stamps only on the cash I take out?
Usually not. The tax applies to the full amount of the new note and the new mortgage. The payoff of your old loan is part of that amount. Only a narrow same-obligor renewal can limit the tax to an increase, and a new-lender VA cash-out generally does not fit it.
Does the VA funding fee make the tax bigger?
Yes, it can. If you finance the fee, it becomes part of the new loan balance, and the balance is what gets taxed. Veterans who are exempt from the fee have a smaller base. Paying the fee out of pocket keeps it out of the loan.
Can the veteran be charged the tax under VA rules?
Yes. Federal VA rules allow the veteran to pay recording fees and recording taxes. The rule makes the charge allowable. It does not make it disappear.
Is there a deed tax when I refinance my own home?
No. A deed tax comes with a change of ownership. A refinance with no change of owner creates no new deed. You still face the tax on the new note and mortgage.
Who can tell me the exact figure?
Your closing or title agent. They calculate the tax from the documents and collect it at recording. Compare their number to Section E of your Loan Estimate. Everything here is general information and subject to lender guidelines and full file review.
What to Do Next
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. Ask for the Florida tax lines to be shown up front, so the cash you plan to net matches the cash you receive.
Florida charges for the loan itself, not for the equity you pull out of it.
For your own numbers, request a scenario review with Lendmire.
About Lendmire
Lendmire (NMLS# 2371349) is a mortgage broker licensed for consumer lending in 16 states. Lendmire arranges FHA, VA, conventional and jumbo purchase and refinance loans through wholesale lenders; every file is underwritten by the lender under the applicable program guidelines. 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
4. Federal Register – VA Cash-Out Refinance Rule
5. CFPB – Government Recording Charges
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: Is a VA Cash-Out Worth It for a Veteran With an Existing VA Loan? · Does a Florida Veteran Pay Doc Stamps on the Full VA Cash-Out? · Can You Do a VA Cash-Out in Year One of an Existing VA Loan?
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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Required disclosures. Lendmire (NMLS# 2371349) operates as a licensed mortgage broker, not a direct lender or depository. The discussion in this article is general in nature and should not be relied upon as financial, legal, or tax advice — every investment scenario is unique and should be reviewed by a qualified professional. Any loan inquiry is subject to lender underwriting, and this article is not a commitment to lend or a guarantee of approval. Mortgage rates, loan terms, and program guidelines vary by borrower, property, and state, and may change without notice. Equal Housing Opportunity. Verify licensure at NMLS Consumer Access.