The Quick Read: Usually not. Florida taxes only the new money when the new loan counts legally as a renewal of the old note, which typically means the same lender, the same borrowers, and a restated original obligation. Most FHA cash-outs pay off a loan held by someone else, so the tax usually lands on the full new note or mortgage amount. Florida’s tax rules decide this, not FHA’s.
What Decides the Tax Base?
The legal structure of the new loan decides it. FHA’s cash-out rules do not.
Florida’s Department of Revenue says the documentary stamp tax on a note is 35 cents per $100 of the obligation, and tax is due on the full amount of the obligation evidenced by the taxable document. Section 201.08 of the Florida Statutes taxes notes “and for each renewal of the same.” A separate section carves out an exemption for certain renewals. That exemption is the only door to new-money-only treatment.
The tax is a government fee. It shows up on your Loan Estimate and Closing Disclosure among the taxes and other government fees. It rises with the loan amount, and a larger cash-out means a larger bill.
Why Most FHA Cash-Outs Pay on the Whole Loan
Most FHA cash-out refinances are new loans from a new lender. Across the wholesale programs Lendmire works with, that is the normal pattern: the new loan pays off the old one, and the old mortgage gets satisfied.
For tax purposes, that looks like a brand-new obligation to a new lender. Florida’s technical advice says a refinance qualifies for the renewal treatment only if it is between the original borrower and the original lender or its assignee. Otherwise tax is levied on the entire obligation.
Here are the usual disqualifiers:
- A different lender holds the new loan.
- A borrower is added or removed.
- The new loan enlarges the old obligation. Revenue Department advice says the enlarged portion does not qualify as an exempt renewal.
- The old note is paid off rather than carried into the new document.
One more point. The $2,450 cap on note tax applies to a promissory note, not to a mortgage recorded in Florida. A recorded mortgage is not capped. A large cash-out does not get a ceiling.
When Could New-Money-Only Treatment Apply?
It can apply when the same lender, or its assignee, holds the existing loan and the new documents restate the original obligation. Florida’s guidance describes the renewal as executed only by the original borrower, extending only the unpaid balance, with the original note and its stamps attached or proof of tax paid on the original mortgage.
In that case the title agent figures tax on the added money only. The tax is paid at recording.
| Scenario | Likely tax base | What to confirm |
|---|---|---|
| New lender pays off old loan | Full new amount | Who holds the current loan |
| Same lender, same borrowers, restated note | New money only, possibly | Renewal paperwork and proof of prior tax |
| Borrower added or removed | Likely full amount | With the closing attorney |
| Loan amount increased | Increase taxed at minimum | How the added amount is documented |
| Assignment of existing mortgage | Assignment itself not taxed | Whether the structure works for FHA |
Plain assignments of a mortgage to a new holder are not taxable under Florida’s administrative rule. That is different from making a new loan.
A Walk-Through in Percentages
Take a homeowner whose existing loan balance is well below the home’s value. FHA cash-out reaches 80% LTV on a home owned and occupied for 12 months before the case number. Say the new loan lands at that ceiling, and the old balance is, for this example, about half the value. Leverage, reserves, and pricing vary by lender and program; the final terms follow the full file review.
- Whole-loan tax base: the full new loan, roughly 80% of value, taxed at 35 cents per $100.
- New-money-only base: just the gap between the new loan and the old payoff, roughly 30% of value, if a qualifying renewal structure existed.
The second base is far smaller, which is why people ask. But it requires the same-holder structure above. Without it, the first base applies. The percentages here are illustrative only. Your title agent computes the actual tax.
What the Recent Appeals Court Ruling Means
A Florida appeals court recently weighed in. In Florida Department of Revenue v. Bank of America, the First District Court of Appeal explained that refinanced loans may be exempt to the extent the lender provides no new money, and that the new loan must be a “renewal” for the stamp tax exemption.
The Department had argued the new loans were brand-new obligations. The court rejected that on those facts. A professional-services summary of the ruling says the original obligations were not extinguished but were rolled into the new loans.
What it does not do is turn every refinance into a new-money-only deal. The facts involved the same bank and identical borrowers. Recording a satisfaction of the old mortgage does not by itself prove a new loan, and this case should not be stretched to cover every transaction. Also, the Department published a notice of rule development in late 2025 covering its renewal rules, so the rule text may change.
Does FHA Allow a Same-Lender Renewal Structure?
Whether FHA allows this structure is not settled. It is unclear whether a same-lender renewal cash-out is a permitted FHA structure, whether it still needs a new case number and endorsement, and whether title insurance, lien priority, and recording work for an FHA loan.
So treat it as a question for the lender and title agent, not a promise. Lendmire is a broker. It arranges FHA loans through wholesale lenders in the 16 states where it is licensed for consumer lending, and it does not set the tax or decide how the closing documents are structured.
The FHA Side of the Equation
FHA rules limit how much cash you can take out. HUD cut the FHA cash-out cap to 80% of value in Mortgagee Letter 2019-11. Before that it was 85%. The cap has no Florida carve-out.
A few practical mechanics on the FHA cash-out refinance program:
- The appraisal sets the value, and every remaining lien counts toward the cap.
- The home must be owned and occupied for 12 months before the case number.
- FHA charges an upfront mortgage insurance premium of 1.75% of the base loan, which can be financed, plus an annual premium that depends on term, amount and LTV.
- The base debt ratios are 31/43, and documented compensating factors can reach 40/50 on the strongest files.
- County loan limits apply.
- The tax and these figures are subject to lender guidelines and full file review.
Because the 80% cap leaves little room, rolling closing costs into the loan eats into the cash you receive. Doc stamps are one of those costs.
How to Confirm Before Closing
Ask these before you sign:
1. Who currently holds my note and mortgage?
2. Is the new loan structured as a renewal, or as a payoff of the old loan?
3. Are the borrowers on the new loan identical to the old?
4. Which amount is the doc stamp tax computed on?
5. If a same-holder structure exists, will it work with this FHA program?
Then read the Loan Estimate and Closing Disclosure line by line. Look in the taxes and other government fees section. If one lender shows a lower government-fee line because of a renewal structure, weigh that against its other costs. Don’t judge on that line alone.
Tax treatment can depend on your situation; borrowers should speak with a qualified tax professional before relying on any deduction or credit. Tax and legal questions about the closing structure belong with a title agent or Florida closing attorney.
Common Misconceptions
| Myth | Reality |
|---|---|
| Florida refinances are always taxed on new money only | Only qualifying renewals are |
| FHA decides the stamp amount | Florida sets it by statute |
| The $2,450 cap protects a mortgage | It covers notes, not recorded mortgages |
| FHA cash-out is still 85% | HUD cut it to 80% |
| Doc stamps equal the deed tax | A refinance has no deed transfer |
Key Terms Defined
Documentary stamp tax: A Florida tax on notes and mortgages, based on the loan amount.
Renewal: A new note that continues the old obligation with the same borrower and lender, rather than replacing it.
Obligor: The borrower who owes the debt.
Obligee: The lender or holder who is owed the debt.
Assignment: A transfer of an existing mortgage to a new holder without creating a new loan.
Adjusted value: The appraisal-based value FHA uses to set the maximum cash-out loan. Terms vary by lender guidelines, property type, leverage, credit profile, and full file review.
Frequently Asked Questions
Does a different lender change the doc stamp base?
Yes. A new lender paying off the old loan usually means tax on the entire new obligation. Florida’s guidance ties the renewal treatment to the original borrower and the original lender or its assignee.
Is the intangible tax handled the same way?
It is a separate test. The intangible tax exemption requires the new loan to refinance the old loan with the same lender. Both taxes turn on same-lender status, but they are not the same rule.
Can I get a refund if I overpaid?
The ruling discussed above does not establish a borrower refund path. Raise it with a Florida tax professional or closing attorney. Do not assume the recent ruling applies to your loan.
Does buying a home offer the same savings?
No. A buyer is a new borrower on a new loan, so the full amount is taxed. The renewal exemption does not fit a purchase.
Does the tax affect whether I qualify for FHA cash-out?
No. The tax does not change eligibility. The 80% cap, owner-occupancy, credit, and ratio rules apply regardless, subject to lender guidelines.
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.
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
3. Fla. 1st DCA, Department of Revenue v. Bank of America
5. HUD Mortgagee Letter 2019-11
This article is part of Lendmire’s FHA Loan series — every loan program’s qualification details, guidelines, and scenarios live on the loan options page.
Related reading: FHA Cash-Out LTV Limit for a Paid-Off Home · FHA Cash-Out Refinance Requirements at a Glance · How to Time an FHA Cash-Out Within a Year of Buying
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.