Are closing costs in Florida feeling like a black box? If you are buying in West Palm Beach or anywhere in Palm Beach County, two line items often raise questions: documentary stamp tax and the intangible tax. You want to budget with confidence, avoid surprises, and understand what you are actually paying for at closing.
In this guide, you will learn what these taxes are, who typically pays them in our market, how they are calculated, where they show up on your Closing Disclosure, and how to estimate your cash to close whether you are paying cash or financing. You will also get a practical checklist to use with your title company and lender. Let’s dive in.
What doc stamps and intangible tax are
Documentary stamp tax on the deed
This is a state transfer tax tied to the deed when real property changes hands. It is assessed on the consideration, which is usually the purchase price. In a standard sale, the tax is due when the deed is recorded.
Documentary stamps on the note or mortgage
If you finance your purchase, Florida also assesses documentary stamp tax related to your loan documents. This applies to the promissory note or mortgage instrument that evidences the debt. These are separate from the deed transfer tax.
Intangible tax on mortgages
Florida charges a one-time intangible tax on mortgages based on the principal amount of the loan. This applies only when there is financing. If you pay cash, you do not owe this tax.
Who usually pays in Palm Beach County
- Seller typically pays the documentary stamp tax on the deed in Florida. This is a common custom in Palm Beach County, but it is not a law.
- Buyer (the borrower) typically pays the mortgage-related items when financing, including documentary stamps on the note and the intangible tax.
- Cash buyers do not pay mortgage-related taxes. You may still see deed stamps on the seller’s side unless your contract shifts that cost.
- All of the above are negotiable. Your purchase contract controls who pays. Always confirm with your agent and the title or closing agent before you sign.
How these taxes are calculated
Florida sets the tax rates and the computation method. The formulas below explain the structure so you can follow along with your title company’s estimate. Rates and rounding rules are determined by the Florida Department of Revenue, and they can change. Always confirm current rates and how to round before relying on any calculation.
Core formulas
- Documentary stamp tax on deed: (Purchase price ÷ 100) × deed stamp rate.
- Documentary stamp tax on note: (Loan amount ÷ 100) × note stamp rate.
- Intangible tax on mortgage: Loan amount × intangible tax rate.
Documentary stamp taxes are typically calculated per $100 of value. Rounding instructions matter, so ask your settlement agent how they are applying them for your file.
Illustrative examples only
These examples show how the math works. The rates below are illustrative for teaching purposes. Do not rely on them for your transaction. Verify current rates and rounding with the Florida Department of Revenue and your closing agent during your contract period and again within 30 days of closing.
Example A: Cash purchase
- Purchase price: 450,000
- Deed doc stamps (illustrative rate): (450,000 ÷ 100) × 0.70 = 4,500 × 0.70 = 3,150
- Customary payer: seller, unless your contract says otherwise
Example B: Financed purchase
- Purchase price: 450,000; Loan amount: 360,000
- Deed doc stamps: same structure as Example A (typically on seller’s side)
- Doc stamps on note (illustrative rate): (360,000 ÷ 100) × 0.35 = 3,600 × 0.35 = 1,260
- Intangible tax on mortgage (illustrative rate): 360,000 × 0.002 = 720
- Customary payer: buyer for loan-related taxes, unless negotiated otherwise
Your title company will compute the exact figures for your file and collect these amounts at closing. If you have multiple loans, the taxes are usually applied to each instrument separately based on the principal amount that is subject to tax.
Where to find them on your Closing Disclosure
The Closing Disclosure (CD) organizes costs into sections for the borrower and the seller. Your settlement agent may also provide a separate title or settlement statement that itemizes fees.
- Deed documentary stamp tax
- Typically appears on the seller’s side under Other Costs in a section like Taxes and Other Government Fees or Transfer Taxes. Labels might include Documentary Stamps on Deed or State Transfer Tax.
- Documentary stamps on the note
- Usually listed on the borrower’s side under Other Costs in Taxes and Other Government Fees or Government Recording and Transfer Charges. It may read Documentary Stamps on Note or State Documentary Stamp Tax on Mortgage/Note.
- Intangible tax on mortgage
- Typically shows on the borrower’s side as Intangible Tax or State Intangible Tax on Mortgage.
If you do not see these listed clearly, ask your closing agent for an itemized breakdown. CDs can group government fees, but you should still see a clear total and who is paying it.
Budgeting your cash to close in West Palm Beach
Every transaction is unique, but you can plan ahead with a simple checklist. Use this as a conversation starter with your agent, lender, and title company.
If you are paying cash
- Earnest money deposit and remaining purchase price
- Owner’s title insurance (if you choose to purchase it)
- Title search, closing agent fee, and deed recording fee
- Documentary stamp tax on deed if your contract assigns it to you
- Prorated property taxes and any HOA transfer or capital contributions, if applicable
- Any negotiated credits or adjustments
Mortgage-related taxes do not apply on a cash purchase.
If you are financing
- Loan origination and underwriting fees, if any
- Appraisal, credit report, and any lender-required inspections
- Lender’s title policy (if required) and related endorsements
- Documentary stamps on the note and the intangible tax on the mortgage
- Recording fees for the mortgage and related documents
- Prepaid interest, initial escrow for taxes and insurance, and mortgage insurance if applicable
- Owner’s title policy for you, if desired
How to get an accurate estimate locally
You do not need to be a tax expert to get this right. Follow these steps for a clean, West Palm Beach–specific estimate.
Gather the basics. Confirm your purchase price and proposed loan amount with your agent and lender.
Ask the title or settlement agent for an estimated Closing Disclosure. They will calculate the deed documentary stamps, note stamps, intangible tax, and recording fees using current rates.
Cross-check the math. Use the formulas above and ask the agent to explain what rate and rounding method they used based on Florida Department of Revenue rules.
Add a small buffer. Set aside extra for rounding, courier fees, and prorations that can shift slightly right before closing.
Reconfirm before you wire. Review the final CD and the settlement statement when they are issued. Make sure the payer for each item matches your contract.
Local context that matters
- Customs vs. contract. In Palm Beach County, sellers commonly pay deed stamps and buyers pay note stamps and intangible tax. That said, the contract controls. If you are competing in West Palm Beach, Boca Raton, or Delray Beach, a clean offer that respects local custom can sometimes help negotiations.
- Recording and logistics. The Palm Beach County Clerk & Comptroller oversees recording. Your title company will collect and remit the taxes as part of the recording process.
- Multiple loans or later changes. Second mortgages, fixed plus HELOC combinations, or construction-to-permanent structures can change calculations. Tell your title company about all financing so they can compute each instrument correctly.
Common pitfalls to avoid
- Assuming the seller always pays every transfer tax. In Florida, deed stamps are usually on the seller’s side, but loan-related taxes are usually the buyer’s responsibility.
- Quoting rates from memory. Florida’s rates and rounding rules are specific. Always confirm with the Florida Department of Revenue and your settlement agent.
- Forgetting to budget for escrow set-up. Escrows for taxes and insurance are not taxes, but they affect cash to close when you are financing.
- Ignoring labels on the CD. Government fees can be grouped. If anything looks bundled or unclear, request a line-item breakdown before you wire funds.
Quick reference: buyer and seller expectations
- Seller’s side commonly includes: documentary stamps on the deed, seller closing fee, prorated property taxes, and commissions.
- Buyer’s side commonly includes: documentary stamps on the note, intangible tax on the mortgage, lender fees, lender’s title policy, recording fees for the mortgage, prepaid interest, escrows, and any HOA transfer items.
- Negotiability is real. If you want to shift who pays a specific tax, put it in writing in the offer and confirm it on the CD.
The bottom line for West Palm Beach buyers
If you are buying in West Palm Beach or the Boca Raton–Delray Beach corridor, plan for two separate buckets of state charges. The transfer tax tied to the deed is usually on the seller. The mortgage-related taxes apply only when you finance and are usually on the buyer. The exact amounts depend on current Florida Department of Revenue rates and rounding rules, which your title company applies when preparing your Closing Disclosure.
When you understand where these taxes come from and how they are calculated, you can budget accurately, write cleaner offers, and move through closing with fewer surprises. If you want a local, high-touch partner to guide your numbers from offer to wire instructions, let’s talk.
Ready to map out your numbers with confidence? Connect with a local expert who will coordinate your lender and title team, explain every line item, and keep your closing on track. Let’s connect with Elena Terrones.
FAQs
What are doc stamps and the intangible tax in Florida?
- They are state taxes tied to real estate transfers and mortgages: deed documentary stamps are assessed on the property transfer, while note stamps and the intangible tax are assessed on financed loans.
Who usually pays deed stamps in Palm Beach County?
- The seller typically pays the deed documentary stamp tax by local custom, but the purchase contract can assign it to either party.
Do cash buyers in West Palm Beach pay the intangible tax?
- No, the intangible tax and documentary stamps on the note apply only when there is financing; cash purchases do not include those mortgage-related taxes.
Where will these taxes appear on my Closing Disclosure?
- Deed stamps usually show on the seller’s side under transfer or government fees, while note stamps and the intangible tax appear on the borrower’s side under taxes and government recording charges.
Are the doc stamp and intangible tax amounts negotiable?
- The tax rates are set by law and are not negotiable, but who pays each tax is negotiable and must be written into your contract.
Who collects and pays these taxes at a Palm Beach closing?
- Your title or closing agent collects the funds at closing and remits them to the Clerk and the Florida Department of Revenue as part of the recording process.
How can I estimate these taxes before I write an offer?
- Use the formulas to understand the structure, then ask your title company for an estimated Closing Disclosure and verify the current rates and rounding rules before finalizing your budget.
