I get a lot of questions about the mortgage documentary stamp taxes from borrowers in both Florida and Georgia who aren’t clear on how much they have to pay as part of their closing costs when the refinance their existing mortgage or take out a new mortgage for a new home purchase.
Here’s the answer.
In Florida, you have to pay a documentary stamp tax that is .0035 x the loan amount PLUS an intangible tax of .002 x the loan amount. An easy way to calculate this is to add them up to .0055 x the loan amount.
So, if you’re borrowing $200,000, your mortgage tax (i.e. docs stamps and intangible tax will be 200,000 x .0055 = $1100.)
As a result of the documentary stamp and intangible tax, Florida is on of the more expensive states in terms of the closing costs the borrower/buyer has to pay. On the other hand, Florida has no state income tax, so the doc stamp tax and intangible tax is one way the state of Florida generates additional state revenue.
In Florida, for purchase transactions, there is a transfer tax; however it is paid by the seller of the home.
This is .7 x the purchase price of the home. So, if the home sells for $200,000, the seller has to pay the state of Florida $1400 as a transfer tax (200,000 x .7 = $1400.)
In Georgia, the state mortgage tax is $3 for every $1000 in mortgage amount. The calculation is .03 x the loan amount.
For example, if the mortgage amount is $200,000 the state of Georgia will assess a tax of $600. (i.e. 200,000 x .03 = $600.)
This applies to both mortgage refinance transactions and purchase transactions.