WHAT IS A TRANSFER TAX AND WHO IS RESPONSIBLE TO PAY?

Transfer tax (referred to as documentary stamp tax in Florida) is a tax imposed by states, counties, and cities on the transfer of the title of real property from one person (or entity) to another within the jurisdiction. It is based on the property’s sale price and is paid by the buyer, seller, or both parties upon transfer of real property.

• Who is responsible to pay?

The party transferring or conveying title to the property (the seller) is generally responsible for the payment of the tax. There are some jurisdictions that dictate who pays the tax but for the most part, there is no mandate and it’s up to the buyer and seller to negotiate who makes the payment. In Florida, the seller traditionally pays the transfer tax or documentary stamp.

• How does it work in Florida?

The Miami-Dade county rate is $0.60 per $100 of the selling price of the property, when it is a single family home. For anything other than a single family home, such as a townhouse, there is an additional $0.45 surtax per $100. In the rest of the state, all properties pay $0.70 per $100. So single-family homes in Miami-Dade get a better deal than the rest of Florida.

REFERENCE: UpNest