How Do You Calculate Deed Tax On A Florida Quitclaim Transfer?

Start with the main rule

A Quitclaim Deed Form is taxed like other deeds that transfer an interest in real property. The documentary stamp tax turns on the consideration for the transfer, not on the deed label. Florida’s Department of Revenue specifically lists quit claim deeds as taxable documents.

The standard rate in most counties

In every Florida County except Miami-Dade, the tax on a deed is 70 cents for each $100 of consideration or fraction of $100. That means $200,000 in taxable consideration would create $1,400 in documentary stamp tax. The calculation is tied to value paid, agreed to be paid or otherwise given for the transfer.

Miami-Dade follows a different rate

Miami-Dade County uses a different deed tax rate. The tax there is 60 cents per $100 of consideration. Miami-Dade also imposes a discretionary surtax of 45 cents per $100 on transfers that are not limited to a single-family residence. If the quitclaim deed transfers only a single-family dwelling, the surtax is not due, but the 60-cent tax still applies.

Why the mortgage balance matters?

Many people assume the tax is based only on cash, but the law is broader than that. Consideration can include money, exchanged property, discharged debt or the amount of a mortgage, lien or other encumbrance on the property. If the property transferred by a quitclaim deed form in Florida has a mortgage on it, that balance is treated as consideration for tax purposes.

When the tax may be small or not due?

If there is no real consideration as well as the deed reflects only nominal wording such as $1 or $10 and other good and valuable consideration, Florida’s examples show that the tax may be only 70 cents in counties outside Miami-Dade. Florida also recognizes certain exemptions, including some deeds between spouses involving homestead property and some transfers connected to divorce of the marital home.

The practical takeaway

The real answer is simple. The tax on a quitclaim deed form in Florida depends on the taxable consideration and the county where the property is located. In most counties, use 70 cents per $100. In Miami-Dade, use 60 cents per $100 and check whether the 45-cent surtax also applies. Before recording the deed, review the mortgage balance, any cash paid as well as any available exemption so the filing is handled correctly before the deed is recorded locally.

Author Bio:-

Carl often writes about legal drafting, legal documents, legal forms, and legal agreements to help people who need them. You can find his thoughts at quitclaim deed template blog.