Buying or refinancing in Miami Shores often comes with precise closing costs that can feel opaque at first glance. One line you may notice is the “intangible tax,” a small percentage tied to your mortgage. If you understand how it works, you can forecast your cash to close with confidence and avoid surprises.
In this guide, you’ll learn what the 0.2% nonrecurring intangible tax is, how it is calculated for Miami Shores transactions, how it differs from documentary stamp taxes, and when it is collected in Miami‑Dade. You will also get a simple checklist to keep your closing on track. Let’s dive in.
What the 0.2% tax covers
Florida’s nonrecurring intangible tax is a one‑time state tax on mortgage‑secured obligations for Florida real property. It applies when a new mortgage or similar security instrument is created and recorded. It is different from documentary stamp taxes and from annual property taxes.
The Florida Department of Revenue sets the rules for the tax, and county clerks and title companies administer collection at closing. In Miami‑Dade, the Clerk’s office will not record your mortgage if required state taxes are unpaid, so closing agents collect and remit them at the time of recording.
How the intangible tax is calculated
The rate is 0.2% of the taxable principal amount. Put another way, it is 0.002 times your loan’s original principal, or 20 cents per 100 dollars. The base is the face amount of the new loan that is secured by Florida real property.
Title companies compute the exact amount down to the dollar and include it on your closing statement. You will typically see it listed as a borrower cost unless your contract allocates it differently.
Simple examples
- New mortgage of $300,000: 0.002 × $300,000 = $600.
- New home‑equity loan of $100,000: 0.002 × $100,000 = $200.
Refinances vs. assumptions
- Refinances: A refinance usually creates a new obligation, so the intangible tax is generally charged again on the new principal amount. Unless a specific statutory exemption applies, expect to pay the 0.2% on the refinance balance.
- Assumptions with no new indebtedness: If you assume a seller’s existing mortgage and no new note or mortgage is created, the intangible tax typically is not charged again. Lenders, title companies, and the clerk may require documentation to confirm there is no new indebtedness.
- Modifications: Changes that do not create a new note with additional principal often do not trigger a new intangible tax. Significant restructurings can create new liability. Your closing agent can confirm treatment for your structure.
When and how you pay in Miami‑Dade
The intangible tax is collected at closing and paid at the time of recording. Your title company or closing attorney will calculate the amount, collect it with other state taxes and recording fees, and submit payment so the mortgage can be recorded.
If required taxes are not paid, the Miami‑Dade County Clerk can refuse to record the mortgage. Delayed or incorrect payment can also result in penalties or interest. Paying the correct amount at closing avoids these issues.
Who typically pays this tax
In everyday practice, the borrower pays the intangible tax because it is a cost tied to obtaining the mortgage. While contracts can reassign expenses, most closing statements list this tax on the borrower side. If you want to negotiate a different allocation, address it early so the closing statement reflects your agreement.
How doc stamps differ from the intangible tax
Florida collects two separate documentary stamp taxes that you may see alongside the intangible tax. Each tax has a different base and rate, and more than one can apply on the same deal.
Doc stamps on the note
Written obligations to pay money, such as promissory notes, are typically taxed at $0.35 per $100 of the loan amount, which is 0.0035 of the principal. On a $240,000 note, that equals $840.
Doc stamps on the deed
Transfers of real property by deed carry doc stamps that are often $0.70 per $100 of the purchase price, which is 0.007 of the consideration. On a $300,000 sale price, that equals $2,100.
Combined example for a financed purchase
Consider a $300,000 Miami Shores purchase with a $240,000 mortgage. The state taxes commonly collected would look like this:
- Deed doc stamps on the $300,000 price: 0.007 × $300,000 = $2,100.
- Note doc stamps on the $240,000 loan: 0.0035 × $240,000 = $840.
- Intangible tax on the $240,000 mortgage: 0.002 × $240,000 = $480.
Total state taxes in this illustration would be $3,420, not including recording fees and other closing costs. Exact amounts can vary based on rounding rules and your contract.
How this shows up on your closing statement
You should expect a clear itemization of state taxes, including the intangible tax, doc stamps on the note, and doc stamps on the deed, along with recording and title fees. If you are borrowing, look for the intangible tax under borrower costs. Ask your closing agent for a preliminary statement well before signing so you can review each line item.
Practical checklist for a Miami Shores closing
- Request a detailed preliminary closing statement that breaks out the intangible tax, both documentary stamp taxes, recording fees, and who pays each item.
- If you are refinancing, confirm whether the new loan will be treated as a new obligation and whether the 0.2% intangible tax applies to the full principal.
- If you plan to assume a loan, verify with the lender and title company that no new note or mortgage will be created, and obtain documentation to support non‑applicability of the tax.
- Confirm Miami‑Dade recording fees and any county‑specific procedures that affect your timeline or totals.
- Keep copies of your final settlement statement and the recorded mortgage for proof of taxes paid. If questions arise, your closing agent or the Miami‑Dade Clerk’s recording office can assist.
Exemptions and special situations
Florida law recognizes certain exemptions for specific transactions or entities, including some government‑issued loans and internal transfers. Whether an exemption applies depends on your exact facts and the statute. Your title company or tax advisor can help confirm eligibility and any documentation required at recording.
Key takeaways for buyers and sellers
- The nonrecurring intangible tax is a one‑time state tax of 0.2% of the original loan principal on a mortgage secured by Florida real property.
- Refinances commonly trigger the tax again, assumptions without new debt typically do not, and minor modifications often avoid new liability.
- In Miami‑Dade, title companies collect the tax at closing and the Clerk requires payment to record the mortgage.
- You will usually see the intangible tax listed as a borrower expense, alongside doc stamps on the note and on the deed.
If you want a precise forecast of closing costs for a Miami Shores purchase, sale, or refinance, ask your closing agent for exact calculations. For rules and rate confirmation, the Florida Department of Revenue is the authoritative state resource, and the Miami‑Dade County Clerk’s office provides current recording procedures.
Ready to review your numbers and plan a smooth closing strategy for Miami Shores or nearby luxury markets? Schedule a private consultation with Unknown Company to get a confidential, advisory‑first plan tailored to your goals.
FAQs
What is Florida’s nonrecurring intangible tax on Miami Shores mortgages?
- It is a one‑time state tax of 0.2% on the original principal of a mortgage secured by Florida real property, collected at or before recording in Miami‑Dade.
How is the 0.2% intangible tax calculated for a Miami Shores loan?
- Multiply the original loan principal by 0.002, which equals 20 cents per 100 dollars of the new mortgage amount.
Do Miami Shores refinances trigger the intangible tax again?
- Yes, a refinance usually creates a new obligation and generally triggers the 0.2% intangible tax on the new principal unless a specific exemption applies.
Does assuming a seller’s mortgage in Miami Shores avoid the tax?
- Often yes, if no new note or mortgage is created and the buyer truly assumes the existing debt; documentation is typically required by the title company and clerk.
Who collects the intangible tax in Miami‑Dade and when is it due?
- Title companies or closing attorneys collect it at closing and remit it with recording; the Miami‑Dade Clerk requires payment to record the mortgage.
How does the intangible tax differ from documentary stamp taxes in Florida?
- The intangible tax is 0.2% on the mortgage principal, while doc stamps apply to the note at about 0.35% per 100 dollars and to the deed at about 0.70% per 100 dollars.
Where will the intangible tax appear on my closing statement in Miami Shores?
- It typically appears under borrower costs as a separate state tax line item, alongside doc stamps and recording fees.
Are any mortgages exempt from the Florida intangible tax?
- Certain transactions may be exempt under statute, such as some government‑issued loans or specific entity transfers; confirm with your closing agent or tax advisor.
