Documentary stamp taxes, commonly referred to as doc stamps, are excise taxes imposed on certain documents recorded in Florida. These taxes are primarily levied on deeds and mortgages. The amount due is determined by applying a specific rate to the consideration paid or, in the case of mortgages, to the principal debt. As an example, a deed transferring property in most Florida counties will incur a tax of $0.70 per $100 of the consideration. For a property sold for $250,000, the tax liability would be calculated as (250,000 / 100) * 0.70, resulting in $1,750 due in documentary stamp taxes.
Accurate calculation of these taxes is crucial for real estate transactions, ensuring compliance with state law and avoiding potential penalties. Historically, these taxes have been a significant source of revenue for the state, funding various government programs and services. Understanding the applicable rates and how to compute the tax liability helps both buyers and sellers navigate the complexities of real estate closings and financial obligations associated with property transfers. The collected revenue contributes significantly to Florida’s economic stability.
