Section 01Why these taxes exist and why a Canadian needs to plan for them
In Quebec, the closing-tax landscape is a notarial fee plus the welcome tax (taxe de bienvenue), which is a one-time municipal duty assessed by the municipality after the deed is registered. In Florida, the structure is different: the state of Florida imposes the transfer taxes directly, the county clerk collects them at recording, and there is no municipal-level Florida equivalent of the welcome tax.
The Florida regime is built on Chapter 201, Florida Statutes (documentary stamp tax) and Chapter 199, Florida Statutes (intangible tax). The taxes apply regardless of where the deed or note is signed; what triggers them is the recording of a document that transfers a Florida real-estate interest or that creates a Florida mortgage lien.[1]
For a Canadian buyer, the practical consequence is that two-thirds of the transaction-tax burden in Florida arrives at closing rather than after registration. Welcome-tax-style billing arrives weeks or months later in Quebec; Florida transfer taxes are paid in cash on closing day, baked into the closing disclosure. A Canadian buyer who underestimates them may be short of funds at the closing table.
Section 02The three taxes, explained one at a time
1. Documentary stamp tax on the deed
The base is the "consideration": the purchase price plus the value of any liability assumed (such as an existing mortgage assumed by the buyer). Money paid, value of property exchanged, and assumed debts all count.[1]
Customary payer: in 66 of Florida's 67 counties, the seller customarily pays the deed stamp. In Miami-Dade, the buyer customarily pays. The FAR/BAR standard contract follows custom but allows negotiation.
2. Documentary stamp tax on the promissory note
The base is the face amount of the loan as stated on the note. The maximum tax is capped at 2,450 USD on unsecured notes; mortgages have no cap, since the tax follows the lien amount.[3]
Customary payer: the buyer (borrower) pays in nearly every Florida transaction.[4]
3. Intangible tax on the mortgage
The base is the mortgage amount, which is usually the same as the loan amount (the note amount). Unlike the deed stamp, the intangible tax is not rounded up to the next 100 USD increment; it is calculated on the exact loan amount.[5]
Customary payer: the buyer (borrower) pays in nearly every Florida transaction.[4]
Section 03Side-by-side rate summary
| Tax | Base | Rate (66 counties) | Rate (Miami-Dade) | Customary payer |
|---|---|---|---|---|
| Documentary stamp on deed | Purchase price | 0.70 USD per 100 USD | 0.60 USD per 100 USD (SFR) or 1.05 USD per 100 USD (other) | Seller (Miami-Dade: buyer) |
| Documentary stamp on note | Loan amount | 0.35 USD per 100 USD | 0.35 USD per 100 USD | Buyer |
| Intangible tax on mortgage | Loan amount | 0.20 USD per 100 USD | 0.20 USD per 100 USD | Buyer |
Source: Florida Statutes Chapter 201 and Chapter 199; Florida Department of Revenue.[1][2]
Section 04CA-side and FL-side comparison
| Topic | State (FL) | Provincial (QC) | Other CA provinces |
|---|---|---|---|
| Deed transfer tax | Doc stamp on deed (state-level) | Welcome tax (taxe de bienvenue), municipal-level, paid weeks after closing | Land Transfer Tax in ON, NB, MB, PE, NS; Property Transfer Tax in BC; no general LTT in AB or SK |
| Mortgage tax | Doc stamp on note (state) + intangible tax on mortgage (state) | None at provincial level | Generally none, except for specific registration fees |
| Tax on creation of mortgage | Yes (note + intangible) | No | No (except registration fee) |
| Total transfer-cost burden, typical | 1% to 1.6% of purchase price (financed) | Approximately 0.5% to 1.5% (welcome tax tiered) | Variable by province |
| Payment timing | At closing, collected by closing agent | Bill arrives 30 to 90 days after registration | At closing in most provinces |
| Statutory authority | Florida Statutes Chapters 199 and 201 | Loi sur les droits sur les mutations immobilières (Quebec) | Provincial Land Transfer Tax statutes |
The structural difference that catches Canadians: in Quebec, the welcome tax is billed after the fact, by the municipality, and the buyer can plan for it over a few weeks. In Florida, the deed stamp, note stamp, and intangible tax are due at closing, in cash, and the closing agent will not release funds without them.
Section 05Worked examples
Example A: 500,000 USD purchase, 80% LTV, in Hillsborough County (Tampa)
- Purchase price: 500,000 USD
- Loan amount: 400,000 USD
- Property type: single-family residence
Calculation:
| Tax | Calculation | Amount (USD) | Customary payer |
|---|---|---|---|
| Doc stamp on deed | 500,000 / 100 = 5,000 units × 0.70 | 3,500 | Seller |
| Doc stamp on note | 400,000 / 100 = 4,000 units × 0.35 | 1,400 | Buyer |
| Intangible tax on mortgage | 400,000 × 0.002 | 800 | Buyer |
| Total state transfer taxes | 5,700 |
Buyer's net out-of-pocket on these three lines: 2,200 USD (note stamp + intangible).
Example B: Same 500,000 USD purchase, 80% LTV, in Miami-Dade County (single-family)
- Purchase price: 500,000 USD
- Loan amount: 400,000 USD
- Property type: single-family residence
Calculation:
| Tax | Calculation | Amount (USD) | Customary payer |
|---|---|---|---|
| Doc stamp on deed | 500,000 / 100 = 5,000 units × 0.60 | 3,000 | Buyer (Miami-Dade custom) |
| Doc stamp on note | 400,000 / 100 = 4,000 units × 0.35 | 1,400 | Buyer |
| Intangible tax on mortgage | 400,000 × 0.002 | 800 | Buyer |
| Total state transfer taxes | 5,200 |
Buyer's net out-of-pocket on these three lines: 5,200 USD. Materially higher than in any non-Miami-Dade county because the buyer carries the deed stamp.
Example C: Same 500,000 USD purchase, 80% LTV, in Miami-Dade (condo, not single-family)
- Purchase price: 500,000 USD
- Loan amount: 400,000 USD
- Property type: condominium (non-SFR)
Calculation:
| Tax | Calculation | Amount (USD) | Customary payer |
|---|---|---|---|
| Doc stamp on deed (base + surtax) | 500,000 / 100 = 5,000 units × 1.05 | 5,250 | Buyer |
| Doc stamp on note | 400,000 / 100 = 4,000 units × 0.35 | 1,400 | Buyer |
| Intangible tax on mortgage | 400,000 × 0.002 | 800 | Buyer |
| Total state transfer taxes | 7,450 |
Buyer's net out-of-pocket: 7,450 USD. The Miami-Dade surtax adds 2,250 USD to the deed stamp on a non-SFR property versus the same condo in any other Florida county.
Section 06Common mistakes Canadians make
- Assuming the welcome-tax model. A Canadian buyer used to receiving a welcome-tax bill weeks after closing is sometimes surprised by the closing-day cash requirement on Florida transfer taxes. Budget the full amount before closing.
- Using the purchase price for the intangible tax. The intangible tax base is the loan amount, not the purchase price. A cash buyer pays no intangible tax.
- Forgetting the Miami-Dade surtax on non-SFR property. A Canadian who buys a Miami Beach condo and budgets 0.70 USD per 100 USD instead of 1.05 USD per 100 USD will be short approximately 1,750 USD on a 500,000 USD condo.
- Rounding the intangible tax. The deed stamp and note stamp are rounded up to the next 100 USD increment of consideration. The intangible tax is calculated on the exact loan amount, no rounding.[5]
- Negotiating without considering total transfer-tax burden. In a "seller pays deed stamp" county outside Miami-Dade, asking the seller to absorb closing costs on top of the deed stamp can be a meaningful concession. In Miami-Dade where the buyer customarily pays, the same negotiation has different mechanics.
- Forgetting the state-side filing requirement on unrecorded transactions. If a deed is delivered but never recorded (rare but possible in some entity-to-entity transfers), the doc stamp must be paid directly to the Florida Department of Revenue using Form DR-225. The tax does not vanish because the document is not recorded.[1]
- Treating these taxes as "lender fees." The intangible tax in particular is sometimes mis-categorised on a closing-cost worksheet. It is a state tax, not a lender fee, and it is not refundable if the loan is paid off early.
Section 07Action checklist
- Identify the county where the property sits. Pull the customary allocation: in Miami-Dade, expect to pay the deed stamp; elsewhere, expect the seller to pay it under the standard contract.
- Confirm the property classification: SFR or non-SFR. The Miami-Dade surtax depends on this.
- Calculate all three taxes once you have the contract price and loan amount. Use rounded-up units for the deed and note stamps; exact loan for the intangible tax.
- Verify the calculation on the closing disclosure issued 3 to 5 days before closing. Closing-cost lines are commonly miscalculated, particularly on non-Miami-Dade Miami-Dade-style errors.
- If the deal involves an existing mortgage being assumed, check the consideration calculation. Assumed debt counts as consideration.
- If the property is held in an LLC, confirm any planned restructuring is reviewed by counsel. Florida has anti-avoidance rules for LLC transfers that include real estate.[6]
- Wire all closing funds in cleared form (cashier's check or wire) to the closing agent on or before the day required.
Section 08FAQ
Are these taxes deductible on my Canadian return?
The buyer's portion of these taxes is added to the cost basis of the property for US tax purposes. They are not deductible as a current expense. On the Canadian side, they form part of the adjusted cost base of the foreign property under the Income Tax Act. Consult a cross-border tax specialist.
Can I avoid the doc stamp by transferring through an LLC?
Florida has anti-avoidance rules. Transfers of real estate to a single-member LLC where the property has an outstanding mortgage trigger doc stamp on the assumed debt. A pure transfer of LLC interests in a holding entity may avoid doc stamp at the moment of transfer, but Florida courts have looked through such structures in some circumstances.[6] This is not a do-it-yourself area.
Is there a maximum on the doc stamp?
The maximum doc stamp on a promissory note that is not secured by Florida real estate is 2,450 USD.[1] There is no cap on the doc stamp on a deed or on a mortgage. The intangible tax has no cap.
Do I pay these on a refinance?
Yes, you pay the note stamp (0.35 USD per 100 USD) and the intangible tax (0.20 USD per 100 USD) on the new loan amount when you refinance, because a new note and a new mortgage are recorded. There is no deed stamp on a refinance because no deed is transferred.
What if I am buying with cash?
You pay only the doc stamp on the deed (or zero if the seller pays it under custom outside Miami-Dade). No note stamp and no intangible tax, because there is no loan.
Are there exemptions?
Yes. Spousal transfers in connection with a divorce, transfers to or from government entities, and certain transfers to tax-exempt organisations are exempt. The full list is in Section 201.02 and Florida Administrative Code Rule 12B-4.014.[1]
Who collects the tax?
The county clerk of court (or recording official) collects the tax at the time the deed and mortgage are recorded.[1] Outside of recording, the tax is paid directly to the Florida Department of Revenue.
Section 09Honest scope statement
This guide explains the three Florida transfer taxes on a residential transaction. It does not address Florida documentary stamp tax on bonds, on certain leases, or on the transfer of mortgage notes (each of which has its own rules under Chapter 201). Commercial transactions can present additional issues including allocation between real and personal property; consult a Florida real estate attorney.