Do cash buyers pay Florida doc stamps?

Short Answer

Cash buyers do not pay note stamps or intangible tax, because there is no new mortgage. The deed stamps still exist. It is customary to put those on the seller unless you agree otherwise.

Do cash buyers pay Florida doc stamps?

Cash buyers do not pay documentary stamp tax on a note or intangible tax, because there is no new mortgage. Deed stamps still exist. In Tampa Bay those deed stamps are commonly quoted at $0.70 per $100 of the purchase price. Confirm the current rate with the closing agent.

Custom in this market still puts deed stamps on the seller unless the contract moves that line. Cash does not rewrite custom by itself.

What this looks like in Pinellas

A cash buyer on a Clearwater Beach condo still sees HOA estoppels, possible flood insurance if they want a policy, and deed stamps on the statement. A financed buyer adds note stamps and intangible tax. That is why a cash file and a loan file never share one blog percent.

Step-by-step

  1. Decide if the offer is truly cash, with no new note.
  2. Ask the closer which stamp lines will print.
  3. Write any shift of deed stamps into the contract.
  4. Do not call a hard-money note a cash deal.

Cash versus financed tax stack

TaxCash purchaseNew mortgage
Deed stampsYes, usually seller by customYes, usually seller by custom
Note stampsNoYes, typically buyer
Intangible taxNoYes, typically buyer

What you control versus what you do not

You control the contract language. You do not control the statutory rate.

Common mistakes

Calling cash zero-tax. Using a private note and calling it cash. Forgetting deed stamps on the seller net sheet.

Next step

Book. Consumer education, not tax or legal advice. Equal Housing Opportunity applies.

Jonathan Loescher, SL3546365 and NMLS 2621894. 29399 US Highway 19 Suite 150, Clearwater, FL 33761. (727) 729-2961.

Jonathan's Advice

Expert Insight

I separate deed stamps from note stamps on every Pinellas cash file. Cash is not free of Florida tax. It is free of the mortgage tax stack. Read the contract before you celebrate.

Talk through your situation

Real estate services are through Realty of America, LLC. Mortgage services are through PMF, Inc..

Equal Housing Opportunity

Real estate services: Realty of America, LLC · FL #SL3546365

Mortgage services: Jonathan Loescher NMLS #2621894, PMF, Inc. NMLS #1980

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