Here in Florida, we do not have a state imcome tax but, in the sale of real estate there is a Documentary Stamp Tax that will be assessed to the buyer and the seller. Both buyer and seller will pay these stamps, but not at the same rate. The Documentary Stamps will show on the HUD statement at closing.
The Documentary Stamps are attached to any deed, mortgage or notes to repay, that transfer interest in Florida real estate from the seller to the buyer.
Buyers
The buyer will pay the Documentary Stamps at a rate of $.35 per $100 on any borrowed money such as a mortgage. If the buyer is paying CASH, there are no Doc Stamps to be paid.
Sellers
The seller is charged $.70 per $100 of the sale price of the transaction for the document(Deed) that transfers the interest in real property to the buyer. Miami Dade County is the exception, whereas the Documentary Stamp Tax rate is $.60 per $100 for a single family home and $.60 plus $.45 surtax per $100 for any other type of property.
These Documentary Stamps can be negioated in any real estate deal but in general, the buyer pays the stamps on the mortgage and the seller pays the stamps on the deed.
For more detailed information, check out the Florida Dept of Revenue's web site. http://dor.myflorida.com/dor/taxes/doc_stamp.html
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