Closing on a Pinecrest home? If you overlook documentary stamp taxes, your closing statement can jump by thousands. You want clarity up front so you can negotiate with confidence and avoid surprises. In this guide, you’ll learn what doc stamps are, how Florida and Miami‑Dade apply them, who typically pays, and how to estimate your numbers before you sign. Let’s dive in.
What doc stamp taxes cover
Florida imposes documentary stamp taxes on documents that transfer real property and on promissory notes and mortgages. For a Pinecrest home purchase, you’ll usually see two line items: doc stamps on the deed and doc stamps on the mortgage or note. These taxes are statutory and are collected at recording or closing.
At the state level, the Florida Department of Revenue sets the framework. Locally, the Miami‑Dade County Clerk of the Courts handles recording. Title companies and settlement agents in Miami‑Dade typically calculate, collect, and remit these taxes when they record your deed and mortgage.
Current Florida rates
Florida’s commonly applied state rates are:
- Deed (conveyance) tax: $0.70 per $100 of consideration.
- Mortgage/note tax: $0.35 per $100 of the loan principal.
These rates are longstanding under Florida law. Always confirm current rates with your closing agent or counsel before finalizing a budget.
Miami‑Dade surtax in Pinecrest
Miami‑Dade County imposes an additional documentary stamp surtax on conveyances recorded in the county. That means the total deed tax in Pinecrest is the state calculation plus any applicable county surtax. The county administers this locally, and rates or rules can change. Title companies and the Clerk’s Recording Division will confirm whether the surtax applies to your deed and the exact amount to collect.
If you are budgeting early, plan for a higher total on the deed than the state‑only estimate and have your settlement agent confirm the current Miami‑Dade surtax amount as you approach contract or closing.
What counts as consideration on the deed
The taxable base for the deed is the consideration. That typically includes the sale price you pay and, if applicable, the amount of any mortgage or lien you assume or take subject to. A few common scenarios:
- Cash purchase: Taxable consideration equals the sale price.
- Purchase with assumed debt: Taxable consideration often equals the sale price plus the mortgage amount you assume. Confirm specifics with counsel.
- Certain exempt transfers: Some transfers may qualify for exemptions or require special filings. Your closing attorney should advise on eligibility and required affidavits.
How to estimate your doc stamps
Use this step‑by‑step approach to create a realistic budget and align it with your closing statement.
Step 1: Determine deed consideration
Start with the sale price. Add any debt you will assume or take subject to, if applicable. This is your taxable base for the deed.
Step 2: Calculate the state deed tax
Formula: (Deed consideration ÷ 100) × $0.70.
Step 3: Add the Miami‑Dade deed surtax
Formula: (Deed consideration ÷ 100) × (Miami‑Dade surtax per $100). Your title company will confirm the current surtax and apply it at closing.
Step 4: Calculate the mortgage doc stamps
If you are financing, apply the state mortgage rate to the loan principal. Formula: (Loan principal ÷ 100) × $0.35.
Step 5: Combine for your working estimate
Total documentary stamp taxes are the sum of the deed tax (state + county surtax) and the mortgage tax.
Example: Pinecrest purchase, financed
- Purchase price: $8,000,000
- Loan amount: $6,000,000
- State deed tax: (8,000,000 ÷ 100) × $0.70 = $56,000
- Miami‑Dade deed surtax: (8,000,000 ÷ 100) × [county surtax per $100] = surtax amount your title company will confirm
- Mortgage tax: (6,000,000 ÷ 100) × $0.35 = $21,000
In this example, your state documentary stamp subtotal would be $77,000 before adding the county deed surtax. The final total increases once the Miami‑Dade surtax is included.
Who usually pays what in Miami‑Dade
Customary practice in Florida is straightforward, but always check your contract.
- Deed doc stamps: Typically paid by the seller. This is common across Miami‑Dade, including Pinecrest. It is negotiable.
- Mortgage doc stamps: Typically paid by the buyer or borrower, since the tax is tied to the loan principal.
Because customs can vary, the purchase agreement should clearly state who pays each tax. In some competitive situations, buyers agree to cover more costs. Make sure the contract reflects any such negotiation and that the closing statement matches what you agreed.
Special scenarios to watch
Certain deal structures can change your numbers and responsibilities. Align early with your counsel and title company so you are prepared.
Assumptions and “subject to” debt
If you assume an existing mortgage, the assumed amount can be part of the deed consideration. That increases the deed tax. Your agreement should state who covers any extra tax that results from the assumption.
Seller financing
If the seller carries a note, the promissory note will generally incur documentary stamp tax on the principal balance. This is separate from the deed tax.
Refinances and modifications
For refinancing, mortgage doc stamps typically apply to the principal amount of the new loan being recorded. Pure modifications that do not create new indebtedness may be treated differently. Have your attorney confirm treatment before you sign.
Exempt transfers
Transfers between certain parties, like some spousal or court‑ordered transfers, may be exempt or require specific filings. If you think an exemption may apply, flag it for your closing attorney early and ensure any required affidavits are prepared.
Timing, penalties, and process
Documentary stamp taxes are due at the time of recording and are usually collected on your closing statement. The title company or settlement agent remits the taxes when recording the deed and mortgage with the Miami‑Dade County Clerk.
If taxes are unpaid or underpaid, recording can be rejected or accepted subject to later correction. Late payment may trigger statutory interest and penalties, and it can complicate recording or cloud title. Your closing team should verify remittance, receipts, and any county requirements before submitting documents.
Pinecrest closing checklist for doc stamps
Use this quick checklist to keep your closing on track:
- Confirm current Florida rates for deeds ($0.70 per $100) and mortgages ($0.35 per $100).
- Ask your title company to verify the current Miami‑Dade deed surtax and whether it applies to your transfer.
- Define deed consideration: sale price plus any assumed debt, if applicable.
- Confirm your loan principal for the mortgage tax calculation.
- Specify in the contract who pays deed and mortgage doc stamps; include any assumptions or special structures.
- Request a draft closing statement that shows the state deed tax, the Miami‑Dade surtax on the deed, and the mortgage tax as separate line items.
- Verify rounding conventions with your closing agent and confirm the final remittance before recording.
- Document any exemption claims and ensure required affidavits are prepared and signed.
How to use this in negotiations
On high‑value Pinecrest homes, doc stamps can materially affect net proceeds and cash to close. Sellers often model net sheets that include the deed doc stamps, while buyers model the mortgage stamp alongside lender fees and reserves. When you understand the formulas and payer customs, you can fine‑tune price, credits, or closing cost allocations to reach a clean agreement.
If your transaction involves an assumption or seller financing, address the tax allocation in the contract. That avoids last‑minute adjustments on the closing statement.
A smoother Pinecrest closing
Clarity on documentary stamp taxes helps you avoid surprises, negotiate with precision, and close on schedule. Your title company and closing attorney are the final word on the Miami‑Dade surtax and any exemptions. Ask for a draft statement early, verify the math, and align it with your contract.
If you would like a discreet, end‑to‑end experience in Pinecrest or across Miami, MGM Luxury Team coordinates closely with your counsel and title company and can introduce trusted closing attorneys when needed. Schedule a Private Consultation to plan your purchase or sale with confidence.
FAQs
What are doc stamp taxes for a Pinecrest home purchase?
- Florida taxes apply to the deed that transfers the property and to the mortgage or promissory note; these are collected at closing and remitted when documents are recorded in Miami‑Dade.
How do Miami‑Dade surtax rules affect the deed in Pinecrest?
- Miami‑Dade adds a local surtax on conveyances recorded in the county, so the total deed tax equals the state deed tax plus the county surtax confirmed by your title company.
Who typically pays the deed and mortgage doc stamps in Pinecrest?
- By custom, the seller usually pays deed doc stamps and the buyer/borrower pays mortgage doc stamps, but your purchase contract should clearly allocate responsibility.
Do cash buyers in Pinecrest still pay doc stamps?
- Yes, cash buyers do not incur mortgage doc stamps, but the deed doc stamps still apply based on the sale price and any included consideration.
How do assumed mortgages change deed doc stamps?
- When you assume debt, the assumed amount is generally included in the deed’s taxable consideration, which increases the deed doc stamps unless the contract allocates that cost differently.
When are doc stamp taxes due, and what happens if they are shorted?
- They are due at recording and are usually collected on your closing statement; underpayment can lead to interest, penalties, or recording issues, so confirm amounts with your closing agent before submission.
