Florida Intangible Tax on Mortgages: A Jupiter Closing Guide

Florida charges a one-time nonrecurring intangible tax on notes and mortgages that are secured by Florida real property. Jupiter and Palm Beach County buyers see it on a purchase-money mortgage, a refinance, and some lines of credit. It is not the same tax as documentary stamps, and it is not a recurring annual intangibles tax on investments.

Direct answer: Section 199.133, Florida Statutes, imposes a one-time nonrecurring tax of 2 mills on each dollar of the just valuation of notes, bonds, and other obligations for payment of money that are secured by a mortgage, deed of trust, or other lien upon real property in Florida. The Florida Department of Revenue publishes the same 2-mill rate as the amount of the obligation multiplied by 0.002.

This page quotes the statute and DOR. It is not tax advice, not a closing-cost quote, and not a substitute for the line items on your closing disclosure. For the rest of a Jupiter closing file, see title insurance and the Jupiter closing process. Homestead and assessment surprises after closing are covered in why a property-tax bill can change after closing. Second-home buyers should also read buying a second home in Jupiter.

The statute and the DOR formula

Section 199.133(1) states: a one-time nonrecurring tax of 2 mills is imposed on each dollar of the just valuation of all notes, bonds, and other obligations for payment of money that are secured by mortgage, deed of trust, or other lien upon real property situated in this state.

Florida DOR's nonrecurring intangible tax page states:

The rate is 2 mills (the amount of the obligation multiplied by 0.002).
The tax is due even if the mortgage is not recorded.
The tax is not calculated on an amount greater than the fair market value of the Florida real property that is collateral for the obligation.
The lender is the taxpayer, but the lender may pass the tax through to the borrower.

Applied as DOR writes it, a $400,000 obligation multiplied by 0.002 is $800. That is arithmetic on DOR's published multiplier. It is not a quote for your loan, and it is not a statement of just valuation in a disputed case. If the note is larger than the fair market value of the Florida real property securing it, DOR's fair-market-value limit is the rule to run past the closing agent — not a blog formula.

When it is due and who pays the clerk

Section 199.135 governs due date and payment. It states that when a written instrument is presented for recordation, the tax is due and payable when the instrument is presented for recordation. If there is no written instrument, or if it is not presented within 30 days following creation of the obligation, the tax is due and payable within 30 days following creation of the obligation.

Where an instrument is recorded, section 199.135 states the person recording it shall pay the tax to the clerk of the circuit court to whom the instrument is presented. Where no instrument is recorded, the tax is paid to the department as provided by rule. DOR's page matches that timing: paid when the mortgage is filed or recorded in Florida; if not recorded within 30 days of the obligation being secured, paid to DOR; delinquent after the 30th day.

On who is liable, section 199.135 states that with respect to the nonrecurring tax imposed pursuant to section 199.133, the taxpayer shall be solely liable for payment of the tax but may pass on the amount of such tax to the borrower or mortgagor. DOR states the same pass-through in plainer language: the lender is the taxpayer but may pass the tax through to the borrower. In a typical Jupiter purchase, that is why the charge appears on the borrower's closing statement even though the statute names the taxpayer as the lender.

What the tax applies to — and what it does not

Topic	Published rule	Source
Rate	2 mills (0.002)	F.S. 199.133; Florida DOR
Tax base (statute)	Just valuation of the note, bond, or obligation secured by Florida real property	F.S. 199.133
Fair-market-value limit	Not calculated on an amount greater than FMV of the collateralized Florida real property	Florida DOR
Mixed collateral	If also secured by personal property or real property outside Florida, just valuation is the portion the Florida real property bears to all of the security	F.S. 199.133
Taxpayer	Taxpayer solely liable; may pass the amount to the borrower or mortgagor	F.S. 199.135; Florida DOR
If recorded	Due when the instrument is presented for recordation; paid to the clerk	F.S. 199.135
If not recorded within 30 days	Pay DOR; delinquent after the 30th day	Florida DOR; F.S. 199.135
Lines of credit	Subject to tax under s. 199.143(3); once tax is paid on the full line of credit, no additional tax	Florida DOR

DOR states that lines of credit are also subject to the tax under section 199.143(3), and that once the tax is paid on the full line of credit, no additional tax is due. That is the published DOR rule. Do not assume a later draw is tax-free without the closing agent confirming the original tax was paid on the full line.

This tax is not documentary stamp tax, not the homestead exemption, and not a 1031 issue. Those are separate. See 1031 exchanges in Jupiter real estate if that is the question you actually have. For expert guidance on Jupiter FL luxury real estate, contact Kyle Camerlinck at 561-371-5143.

FAQ

What is Florida's nonrecurring intangible tax rate on a mortgage?

Section 199.133, Florida Statutes, imposes a one-time nonrecurring tax of 2 mills on each dollar of the just valuation of notes, bonds, and other obligations secured by a mortgage, deed of trust, or other lien on Florida real property. The Florida Department of Revenue states the rate as 2 mills, calculated as the amount of the obligation multiplied by 0.002.

Who is the taxpayer?

Florida DOR states the lender is the taxpayer but may pass the tax through to the borrower. Section 199.135 states the taxpayer is solely liable for payment but may pass the amount to the borrower or mortgagor.

Is the tax due if the mortgage is never recorded?

Yes. DOR states the tax is due even if the mortgage is not recorded. If the mortgage is not recorded within 30 days of the obligation being secured, DOR says the tax is paid directly to the department. After the 30th day the tax is delinquent.

Is this the same as documentary stamp tax?

No. Documentary stamp tax is a separate Florida tax. This page covers only the nonrecurring intangible tax in chapter 199. Confirm both line items on your closing disclosure with the closing agent. This is not tax advice.