The two Florida taxes on a refinance
When you sign a new note and mortgage, Florida charges documentary stamp tax of 35 cents per $100 of the loan, and a one-time nonrecurring intangible tax of 2 mills, which is 0.2% of the loan. Both are paid when the mortgage is recorded. On a $480,000 loan that is $1,680 in doc stamps and $960 in intangible tax. These are on top of the doc stamps you paid when you bought, because the state treats the refinance as a new debt.
When the taxes may not apply
Florida law exempts a true renewal of an existing note: same borrower, no new money, only the unpaid balance carried forward, with the original note attached and marked. In practice this mostly happens when your current lender modifies or extends the loan instead of paying it off. A standard refinance with a new lender pays the full tax. Ask your title company which way your loan will be recorded before you rely on the exemption.
How to read the result
- Break-even is total closing costs divided by the drop in your monthly principal and interest.
- Lifetime interest compares what you still owe in interest on the current loan with the full interest on the new one. Restarting a 30-year term often lowers the payment and raises total interest.
- Escrow deposits for taxes and insurance are not a cost of refinancing. You get the old escrow balance back from your current servicer, usually within a few weeks after payoff.
If you add closing costs to the loan, the taxes are charged on the larger amount, and the calculator accounts for that.
Questions
Do I pay doc stamps again when I refinance in Florida?
Yes, in most cases. A refinance creates a new note and mortgage, which are taxed at $0.35 per $100 plus 0.2% intangible tax. Only a qualifying renewal of the same note is exempt.
Who pays these taxes on a refinance?
The borrower. There is no seller in a refinance, so the doc stamps and intangible tax appear in your own closing costs.
Is a cash-out refinance taxed the same way?
Yes. The tax is based on the full new loan amount, including the cash you take out.
