TAX & LEGAL GUIDE

Florida Real Estate Taxes: Complete Guide for Home Sellers

Florida sellers face several taxes at closing: documentary stamp taxes on the deed, potential capital gains tax on profit, and property tax proration. Understanding these costs before you list helps you net more and avoids closing-day surprises. Florida's tax environment is one of the most favorable in the country for home sellers — no state income tax is a major advantage.

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Documentary Stamp Tax on Deeds (Florida)

Florida charges a documentary stamp tax on every deed transfer. The standard rate is $0.70 per $100 of the sale price (0.70%) — paid by the seller in most Florida counties. In Miami-Dade County only, the rate is $0.60 per $100 ($0.45 for single-family primary residences). On a $425,000 sale: documentary stamp tax = $2,975 statewide, or $2,550 in Miami-Dade. This is a fixed, unavoidable Florida closing cost. There is also a documentary stamp tax on the mortgage note (paid by the buyer) at $0.35 per $100 of loan amount.

Federal Capital Gains Tax on Home Sale

The IRS provides a capital gains exclusion for primary residence sales: $250,000 (single filer) or $500,000 (married filing jointly) of gain is excluded from federal tax. To qualify, you must have owned and lived in the home as your primary residence for at least 2 of the last 5 years before sale. Since Florida has no state income tax, federal capital gains is the only tax on home sale profit for most Florida homeowners. Long-term capital gains rates: 0% (income under ~$47K single / ~$94K married), 15% (most taxpayers), 20% (high earners).

Property Tax Proration at Closing

Florida property taxes are paid in arrears — the 2025 tax bill covers January–December 2025 and is typically due November 1, 2025 with a discount for early payment. At closing, property taxes are prorated: the seller credits the buyer for the days the seller owned the property in the current tax year. If you close October 1, the seller owes ~9 months of property taxes as a credit to the buyer. Your title company calculates this proration automatically. It shows up as a "seller credit for property taxes" on your closing disclosure.

FREQUENTLY ASKED QUESTIONS

Common Questions

Does Florida have a capital gains tax on home sales?

No — Florida has no state income tax and therefore no state capital gains tax. You may owe federal capital gains tax on profit exceeding the IRS exclusion ($250K single / $500K married for primary residences).

What is the total tax burden for a Florida home seller?

For a typical Florida seller on a primary residence: documentary stamp tax (~0.7% of sale price), real estate commission (eliminated or reduced with flat fee MLS), and potentially federal capital gains if profit exceeds the $250K/$500K exclusion. Most Florida sellers owe little to no income tax on the sale.

Who pays the documentary stamp tax in Florida?

In most Florida counties, the seller pays documentary stamp tax on the deed. In Miami-Dade, the rate is slightly different. Documentary stamp tax on the buyer's mortgage note is paid by the buyer.

Can I deduct selling costs to reduce capital gains?

Yes — selling costs (commissions, closing costs, home improvements made during ownership) can be added to your cost basis, reducing your taxable gain. With flat fee MLS, your deductible selling costs are much lower than with traditional commission, which means more of your gain is excluded under the IRS exemption.

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