Do You Pay Doc Stamps on a Quit Claim Deed in Florida?

Yes, you generally have to pay documentary stamp taxes (doc stamps) when recording a quit claim deed in Florida. The documentary stamp tax is a tax on the transfer of real estate and applies regardless of the type of deed used. Here are the key points to understand about doc stamps on a quit claim deed in Florida:

Tax Rate:

• Standard Rate: Florida's documentary stamp tax rate is $0.70 for every $100 of the property's sale price or fair market value, whichever is higher. In Miami-Dade County, the rate is $0.60 for every $100, with an additional $0.45 for documents that transfer an interest in real property other than a single-family residence.

• Calculation Basis: If the property is transferred as a gift (i.e., no money changes hands), the tax is based on the property's fair market value.

Payment Responsibility:

• Typically Paid by Grantee: While the tax is usually paid by the person recording the deed, often the grantee (the person receiving the property), the parties can agree on who will pay this tax.

Exemptions:

• Family Transfers: Certain family transfers may qualify for exemptions or reduced rates. For example, transfers between spouses or for estate planning purposes may be exempt from the documentary stamp tax. Verifying the specific conditions and applying for the exemption properly is important.

• Trust Transfers: Transfers to or from a revocable trust may also qualify for exemptions, but these situations require careful legal review and documentation.

Due to the complexities and potential for exemptions, it is advisable to consult a real estate attorney when transferring property via a quit claim deed. An attorney can ensure the deed is properly executed and recorded and help identify potential exemptions or reduced rates for the documentary stamp tax.