Florida Home Sellers: Know Your Tax and Closing Cost Obligations

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If you're selling a residential property in Florida, there are a few key taxes and costs you need to be aware of — particularly documentary stamp taxes, which represent the main seller-side tax. Here’s a clear breakdown:

✅ 1. Documentary Stamp Tax on the Deed ("Doc Stamps")

• What is it?
  A state transfer tax applied when the deed is recorded to transfer ownership.

• Who pays it?
  Typically the seller (unless otherwise negotiated in the contract).

• Rate:

  • $0.70 per $100 of the sales price (rounded up)

  • Miami-Dade County exception:

    • $0.60 per $100 if the property is a single-family home or condo

    • An additional surtax of $0.45 per $100 applies for non-residential or multifamily properties

✅ 2. Capital Gains Tax (Federal)

• What is it?
  Tax on the profit from the sale of your property (difference between selling price and your adjusted basis).

• Exemptions:

  • If the property was your primary residence for 2 out of the last 5 years, you may exclude:

    • Up to $250,000 of gain (individual)

    • Up to $500,000 (married couple filing jointly)

• Foreign sellers: May also be subject to FIRPTA (see below).

✅ 3. FIRPTA Withholding (Only for Foreign Sellers)

• What is it?
  The Foreign Investment in Real Property Tax Act requires that 15% of the sales price be withheld at closing if the seller is not a U.S. resident.

• Note:
  This is a withholding, not a tax itself — the seller may file a return to claim a refund if actual tax owed is less.

✅ 4. Additional Seller Costs (Not taxes, but relevant):

• Real estate agent commissions (typically 5–6% of sales price, split between buyer and seller agents)

• Title search and closing fees (sometimes shared, but often seller pays title policy in counties like Miami-Dade and Broward)

• Property repairs or credits agreed to in the negotiation

• HOA estoppel fees (if applicable)

🧾 Summary for Sellers in Florida: