The Quick Read: The Miami-Dade surtax generally adds nothing to a VA cash-out refinance. It is a deed tax, and a refinance records a new mortgage and note, not a deed. The state charges that do reach a Florida cash-out are the documentary stamp tax on the note and the one-time intangible tax on the mortgage. Both run on the new loan amount, so a bigger loan means bigger charges. Final amounts come from the closing agent and your Loan Estimate.
Key Terms Defined
- Documentary stamp tax on the note: A state tax on a written promise to pay money, charged on the full obligation. The rate is 35 cents per $100 or portion of $100.
- Nonrecurring intangible tax: A one-time state tax on a mortgage that secures a debt on Florida real property. It is 2 mills, which is the loan amount times 0.002.
- Miami-Dade surtax: A county add-on to the deed stamp tax. It is 45 cents per $100 and applies to certain deed transfers.
- Deed stamps: The tax on a document that transfers ownership. A refinance of a home you already own has no such document.
- Funding fee: The VA charge on the loan itself. It is separate from state taxes and can be financed.
- Residual income: The money left each month after major obligations and living costs. On VA loans it is the controlling underwriting test.
Why Doesn’t the Surtax Reach a VA Cash-Out?
The surtax is part of the deed tax, so it needs a deed. A cash-out refinance on a home you already own transfers nothing. You sign a new note and a new mortgage, and those are taxed under different rules.
VA cash-out estimate
Seeded with an example value, a typical balance, and a round cash request at the first-use fee; change any field.
Editable benchmark: 7.40% as of October 15, 2026 · Freddie Mac 30-year average via FRED®. A conventional market reference, not a VA cash-out refinance quote.
Illustrative starting assumptions: a $350,000 home value, a $193,000 current balance, the full-value VA cap with the first-use funding fee financed, a thirty-year term at the current Freddie Mac benchmark, and property taxes and insurance estimated at typical national rates. 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 VA cash-out refinance quote; a VA loan is priced by the lender at lock. The total loan, funding fee included, is capped at the program leverage on the reasonable value; the fee follows the tier chosen. The cash available is what the cap allows less the balances paid off and the fee, before closing costs, which are not included. The HELOC line is the line program’s combined loan-to-value ceiling applied to the same value and balance. Taxes and insurance are editable estimates. The debt-to-income figure is a guideline; residual income decides a VA file. Licensed in sixteen states for consumer mortgages.
The Florida Department of Revenue’s documentary stamp tax page explains the setup. Miami-Dade charges a discretionary surtax of 45 cents per $100 on top of the 60 cents per $100 deed stamp. The same page says the surtax is not due on a document that transfers only a single-family dwelling. Its own example of the surtax is a vacant-lot purchase.
So there are two layers of protection for a typical homeowner. A refinance has no deed. And even a sale of a single-family home skips the surtax.
Some web pages muddy this. A few describe the surtax as applying to “residential” property in general, and a few say it hits the “total.” Those pages are written around purchases and are loose about the exemption. Nothing in the primary sources applies the surtax to a refinance mortgage. If a surtax line appears on your Loan Estimate for a plain cash-out, ask the closing agent to explain it before you accept it.
Lendmire’s related pieces on how much the miami-dade surtax adds to a jumbo cash-out cover the same deed-versus-loan split for larger balances.
What Do the Loan-Side Charges Actually Add?
Two state charges apply to a Florida cash-out, and together they come to roughly 0.55% of the new loan amount, one time. That is the note stamps at 0.35% plus the intangible tax at 0.2%. It is a percentage, so it scales with the loan. It is not a monthly cost and it never recurs.
Here is how each piece works.
Stamps on the note. Promissory notes signed or delivered in Florida carry the stamp tax on the full obligation, per the Florida Department of Revenue. Some secondary sources say a recorded mortgage has no cap while a standalone note does. Those are not official sources, so treat any cap as a question for your closing agent.
Intangible tax. Chapter 199 of the Florida Statutes taxes obligations to the extent a mortgage or lien on Florida real property secures them. The state’s nonrecurring intangible tax page sets the rate at 2 mills. It also says the tax can never be figured on more than the fair market value of the collateral. The tax is paid when the mortgage is recorded.
The detail that surprises most borrowers: both charges run on the entire new loan balance. They do not run only on the cash you take out. A cash-out that pays off the old loan and hands you equity is taxed on the whole new amount.
Who Pays: The Legal Taxpayer or the Borrower?
The lender is the legal taxpayer for the intangible tax, but the state says the lender may pass the cost to the borrower. In practice that means the cost lands on your side of the closing statement. The closing agent collects the charges and pays them when the mortgage is recorded. If the mortgage is not recorded in the time the state allows, the intangible tax goes directly to the Department of Revenue.
Pages that say “the buyer pays” skip this distinction. Custom is not law. On a refinance there is no seller, so the question is simply whether these charges are allowable for a VA borrower to carry.
How Does VA Treat These Charges?
VA’s own handbook sets the rule. Under VA Pamphlet 26-7, Chapter 8, the veteran may pay reasonable and customary amounts of the itemized fees VA designates, plus the lender’s flat charge. For refinances, the handbook says refinancing loans may include other allowable fees and charges in the loan amount.
Fees tied to local variances may be charged to the veteran only if VA specifically authorizes them. A lender can ask the Regional Loan Center for approval where a fee is customary in that jurisdiction.
State taxes on the note and mortgage are generally treated as allowable government charges on wholesale VA files. The loan officer confirms the treatment for your specific file against the current handbook.
How the Funding Fee Fits In
The funding fee is a separate VA charge, not a state tax. On a VA cash-out refinance it is 2.15% for first use and 3.3% for subsequent use. It is waived for veterans receiving compensation for a service-connected disability and the other exempt groups. It can be financed into the loan.
Financing matters for the tax math. Anything added to the balance raises the loan amount, and the state charges run on the loan amount. So a financed funding fee carries a small tax of its own. The effect is modest, but it is real.
The program itself reaches 100% of the appraised value including the financed fee, and it refinances any loan type into VA. Across the wholesale programs Lendmire works with, VA cash-out files carry the same seasoning as an IRRRL: the later of 210 days from the first payment and the 6th payment. They also need a net tangible benefit. The VA cash-out refinance program page lays out the structure in full.
Walking Through a Cash-Out Without Dollar Figures
Take a veteran with a home worth a round number and an old loan well below it. The new loan is set as a percentage of the appraised value, with the financed funding fee inside that ceiling. Three things then happen at closing.
1. The old loan is paid off from the new loan.
2. The funding fee is financed into the new balance, unless the veteran is exempt.
3. The state stamps and intangible tax, about 0.55% of the new balance together, are collected at closing along with title and recording charges.
Where do those state charges come from? Under the handbook language above, allowable fees can either be included in the loan amount or paid out of pocket or from proceeds, depending on the lender and the file. Paid from proceeds, the taxes reduce the cash the veteran walks away with. Included in the loan, they raise the balance. Either way, they do not create a monthly tax.
If the taxes are financed, the balance rises and the state charges rise with it. The change is small, but the cash in hand is larger. Which is better depends on how much cash you need and how much extra balance you want to carry.
The surtax never enters this walk-through. It does not appear in any step.
Purchase Versus Cash-Out: What Disappears
| Charge | Applies to a purchase? | Applies to a VA cash-out? |
|---|---|---|
| Deed stamps | Yes | No deed, so no |
| Miami-Dade surtax | Only if not single-family | Generally no |
| Stamps on the note | Yes | Yes |
| Intangible tax | Yes | Yes |
| VA funding fee | Yes | Yes |
The deed-side charges drop out. The loan-side charges stay. Switching from a conventional or FHA loan to a VA cash-out does not earn a credit for stamps or intangible tax paid on the old loan. Secondary sources say there is no credit when you refinance with a new lender, so plan on paying fresh charges on the new balance. Lendmire’s VA loan overview covers the purchase side of the program.
Where the General Rule Breaks
The “no surtax on a refinance” rule holds for a plain cash-out. These edge cases change the picture.
A deed recorded alongside the refinance. Adding or removing a spouse, moving the home into a trust or LLC, or a divorce buyout can involve a deed. A deed brings deed-side questions with it. That is a legal question for a title or closing attorney, not a loan officer.
The same-lender refinance carve-out. The statute has a refinance carve-out for intangible tax only where the new loan is with the same lender or its assignee and the new principal does not exceed the old unpaid balance plus accrued interest. That language appears in the Florida Senate’s posted version of Chapter 199. A cash-out raises principal, so it generally falls outside the carve-out. The posted version is older, so the closing agent should check the current statute text.
Condos and multi-unit homes. One secondary source treats a condo unit as a single-family residence for the surtax. That is unconfirmed. For a multi-unit home you live in, a purchase deed could carry the surtax, but a cash-out on it would still have no deed. Keep both questions with the closing agent.
Lines of credit. The state taxes a line of credit to the extent a mortgage secures it, and once tax is paid on the full line, no more is due. That matters if you are comparing a VA cash-out with a non-VA home equity line.
Out-of-state collateral. Tax is apportioned when a note is secured by Florida and out-of-state property. It is rare on a home loan.
What Underwriting Looks Like
None of these taxes change how the file is underwritten. Residual income is the controlling test. The 41% debt-to-income figure is a guideline, not a cap, and a ratio above it needs residual income well above the table. The certificate of eligibility from VA decides eligibility.
The wholesale programs Lendmire places VA loans with start at a 580 decision score. VA itself sets no minimum. A VA appraisal sets reasonable value, and the 100% ceiling is measured against it. Everything is subject to lender guidelines and full file review.
Cost matters in one other place: the net tangible benefit. A refinance has to leave the veteran better off in a way the file can show. Closing costs that have to be earned back through payment savings can make a small refinance harder to justify. A cash-out with a clear purpose, such as paying off higher-cost debt, usually reads differently than one with no purpose.
Where to Spot These Charges on Your Disclosures
State taxes on the note and mortgage typically appear on the Loan Estimate under taxes and other government fees. That is the usual home for transfer and mortgage taxes, though placement can vary.
Check three things when your Loan Estimate arrives:
1. A surtax line on a plain cash-out. Ask why it is there.
2. The base for the stamps and intangible tax. It should track the new loan amount, not just the cash you receive.
3. Whether any taxes were financed or paid from proceeds. That changes your cash at closing.
Common Myths
“The surtax gets added to my refinance.” It is a deed tax, and a single-family transfer is exempt.
“The intangible tax is an annual bill.” The annual version was repealed. Only the one-time tax on recorded mortgages remains.
“The lender pays it.” The lender is the legal taxpayer, but the cost may be passed to you.
“I get credit for tax paid before.” Not generally, on a new lender.
“The note rate matches the deed rate.” The deed rate is higher. The note stamp is 35 cents per $100, against 60 cents per $100 for a Miami-Dade single-family deed.
Frequently Asked Questions
Does the Miami-Dade surtax apply to a VA cash-out refinance?
Generally no. The surtax is part of the deed tax, and a refinance records a mortgage and note rather than a deed. If a surtax line shows up on your Loan Estimate, ask the closing agent to explain it.
What state charges do apply to a Florida VA cash-out?
The documentary stamp tax on the note and the nonrecurring intangible tax on the mortgage. Together they come to roughly 0.55% of the new loan amount, one time. Final figures come from the closing agent.
Are these charges based on the cash I take out?
No. They run on the whole new loan balance, including the amount that pays off your old loan and any financed funding fee. A larger balance means larger charges.
Can these taxes be rolled into the loan?
VA’s handbook says refinancing loans may include other allowable fees and charges in the loan amount. The details depend on the lender and the file. Financing them raises the balance and the taxes that run on it, so ask your loan officer to show both versions.
Is there a credit for tax I paid on my old mortgage?
Secondary sources say not when you refinance with a new lender. The statute has a narrow same-lender carve-out, and a cash-out that raises principal generally falls outside it. Have the closing agent confirm for your file.
Next Step
Tax treatment can depend on your situation; borrowers should speak with a qualified tax professional before relying on any deduction or credit. 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.
Get Started
Ready to find the right loan for you?
In about 30 seconds you can review financing options available for your home or investment property. No commitment required.
Informational only. Not a Loan Estimate, approval, or commitment to lend. Program availability and eligibility are subject to lender guidelines, credit approval, property review, and underwriting.
References
1. Florida Department of Revenue – Documentary Stamp Tax
2. Florida Department of Revenue – Nonrecurring Intangible Tax
3. VA Pamphlet 26-7, Chapter 8
4. Florida Senate – Chapter 199, Florida Statutes
This article is part of Lendmire’s VA cash-out refinance program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: Can VA Cash-Out Proceeds Be Used for Any Purpose? · Can a VA Cash-Out Refinance Buy Out an Ex-Spouse? · How Much Entitlement a VA Cash-Out on a Texas Homestead Leaves
Guides: VA Cash-Out Refinance in Miami, FL · VA Cash-Out Refinance in Florida
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
- Mortgage Loan Originator · NMLS# 1129696 · Verify on NMLS Consumer Access
- North Carolina Real Estate Broker · License# 343312 · Verify on NCREC
- North Carolina Insurance Producer · License# 19053198 · Property, Casualty, Life, Health · Verify on NAIC SBS
- Lendmire LLC · Firm NMLS# 2371349 · Verify firm licensure
Important disclosures. Lendmire (NMLS# 2371349) is a licensed mortgage brokerage. Lendmire is not a direct lender, depository institution, or financial advisor. All loan inquiries are subject to lender underwriting; this article does not constitute a commitment to lend. Rates, terms, and program guidelines are subject to change without notice and vary by borrower profile, property type, and state. Information in this article is general in nature and is not financial, legal, or tax advice. Equal Housing Opportunity. NMLS Consumer Access: nmlsconsumeraccess.org.