Glossary · Closing & Contracts

Intangible Tax

The lesser-known tax on Florida mortgages: $2 per $1,000 borrowed, due at recording.

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Quick definition
Florida's nonrecurring intangible tax is a one-time tax of $2 per $1,000 (2 mills) on the amount of any new mortgage recorded against Florida real property. A buyer financing $320,000 pays $640, on top of documentary stamp tax on the note at $0.35 per $100 ($1,120 on the same loan). Cash buyers pay neither.

When it applies

The tax is due whenever a mortgage, deed of trust, or other lien on Florida real property is recorded — purchases and refinances alike (a refinance with the same lender may qualify for credit on the previously taxed balance; the closing agent calculates it). It is 'nonrecurring': paid once at recording, not annually.

How it stacks with other loan taxes

A financed Florida purchase pays two loan-side taxes at closing: note documentary stamps at $0.35 per $100 of the loan, and intangible tax at $2 per $1,000. On a $320,000 mortgage that is $1,120 + $640 = $1,760 — a Florida-specific cost many relocating buyers have never seen in their prior state.

Who pays

By custom the borrower (buyer) pays both loan taxes, since they arise from the buyer's financing. They appear on the buyer's side of the closing disclosure, alongside lender fees.

Common questions.

How much is Florida intangible tax on a mortgage?
Two mills — $2 per $1,000 of the mortgage amount, one time, at recording. A $400,000 loan pays $800.
Do cash buyers pay intangible tax in Florida?
No. The tax applies to recorded mortgages. A cash purchase records only the deed, which pays documentary stamp tax instead.
Is intangible tax deductible?
Tax treatment depends on your situation; ask a tax professional. As general information, one-time transfer taxes are typically treated as part of the cost of acquiring the loan or property rather than as deductible interest.

Have a question about a Florida real estate transaction?

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