Florida Closing Costs Explained.Know Every Line Item.

Closing costs are the taxes, fees, and prepaid items due when a home changes hands, on top of the purchase price. Florida has its own state taxes on deeds and mortgages, and local customs affect who pays for title insurance. Here’s what buyers and sellers can expect, and how each cost is calculated.

Florida’s Transfer and Mortgage Taxes

Three state taxes show up on most Florida closing statements. Their rates are set by law, so you can estimate them precisely.

Documentary Stamp Tax on the Deed

When a deed is recorded, Florida charges documentary stamp tax of 70 cents per $100 (or portion of $100) of the sale price. Miami-Dade County is the exception: the rate there is 60 cents per $100, plus a 45-cent surtax per $100 unless the property is a single-family dwelling.

• $400,000 sale outside Miami-Dade: $400,000 ÷ 100 × $0.70 = $2,800
• $400,000 single-family sale in Miami-Dade: $400,000 ÷ 100 × $0.60 = $2,400

Documentary Stamp Tax on the Note and Mortgage

If you finance, the loan documents are taxed at 35 cents per $100 of the amount borrowed. On a $360,000 loan, that’s $1,260. For very large loans, ask your title agent how the tax applies.

Nonrecurring Intangible Tax on the Mortgage

Florida also charges a one-time tax of 2 mills ($0.002 per dollar) on loans secured by Florida real estate. On a $360,000 loan, that’s $720.

Who Pays These Taxes?

The contract decides. Under the widely used Florida Realtors/Florida Bar residential contracts, the seller pays the documentary stamp tax on the deed, and the buyer pays the taxes and recording fees on the note and mortgage, plus the recording fee for the deed. Either side can negotiate different terms.

Title Insurance

Title insurance protects against covered problems with ownership, such as undisclosed liens or recording errors. There are two policies:

• Owner’s policy, which protects the buyer’s ownership for as long as they own the home.
• Lender’s policy, which protects the lender and is required with most mortgages. The buyer customarily pays for it.

Florida title insurance premiums are set by state rule, so the premium for the same policy amount is regulated statewide. Other title and closing-service fees, like settlement and search fees, can vary by company, so it’s worth comparing.

Who pays for the owner’s policy depends on the contract, and local custom varies by county. In Miami-Dade, Broward, and Sarasota counties, the buyer customarily pays for the owner’s policy and chooses the title company. In many other Florida counties, the seller customarily pays. Your contract controls either way.

Common Buyer Closing Costs

If you’re financing, your Loan Estimate lists these costs. Typical items include:

• Lender charges: origination or underwriting fees, any discount points you choose, appraisal, and credit report.
• State taxes on the loan: note and mortgage documentary stamps and intangible tax (above).
• Title charges: lender’s title policy and endorsements, plus the owner’s policy if your contract assigns it to you.
• Recording fees for the deed and mortgage.
• Inspections and survey, including any wind mitigation or specialty inspections.
• Prepaid items: the first year of homeowners insurance (and flood insurance, if needed), prepaid mortgage interest, and initial deposits into your escrow account for taxes and insurance.
• Association costs, if applicable: application or transfer fees and any capital contribution required by the community’s documents.

Your Closing Disclosure arrives at least three business days before closing. Compare it line by line with your Loan Estimate. Ready to start? Our home search shows current listings, and our First-Time Home Buyer’s Guide includes a payment calculator.

Common Seller Closing Costs

Sellers usually see these on their closing statement:

• Documentary stamp tax on the deed (above), when the contract assigns it to the seller.
• Payoff of existing mortgages and any liens.
• Brokerage compensation, as set in your listing agreement and the purchase contract.
• Owner’s title policy, if the contract or local custom assigns it to the seller.
• Association estoppel certificate fees and any fees to cure title issues.
• Prorated property taxes and any repair credits or concessions you agreed to.

See our Seller’s Guide for the full selling process, or visit our Sell page.

How Property Taxes Are Prorated

Florida property taxes cover the calendar year and are paid in arrears. Tax bills go out in the fall, with discounts for early payment: 4% in November, 3% in December, 2% in January, and 1% in February. Because the seller owned the home for part of the year, the seller typically credits the buyer at closing for their share of the year’s taxes, and the buyer pays the full bill when it arrives.

Buyers, plan ahead: A home is reassessed at market value as of January 1 after it sells, and the seller’s homestead exemption and Save Our Homes cap don’t transfer to you. Your future tax bill may be noticeably different from the seller’s, so estimate it with the county property appraiser’s tools before you buy.

Example: Florida Taxes on a $400,000 Purchase

Here’s how the three state taxes work out for a $400,000 home outside Miami-Dade, bought with a $360,000 loan (10% down). These figures cover only the state taxes, not lender, title, or other fees.

Tips to Keep Closing Costs in Check

• Compare Loan Estimates from more than one lender.
• Ask about assistance programs. The Florida Housing Finance Corporation offers down payment and closing cost help for eligible buyers through participating lenders.
• Negotiate. Seller credits toward closing costs are common terms to discuss, subject to your loan program’s limits.
• Think about timing. Your closing date affects how much prepaid interest you pay at closing.
• Verify wiring instructions by phone at a known number before sending funds.

Get a Clear Estimate for Your Move

Every transaction is a little different. Whether you’re buying or selling, we’ll help you estimate your costs before you sign, so there are no surprises at the closing table.