Documentary stamps — commonly called "doc stamps" — are a form of transfer tax imposed by state or local government when real property changes hands or when certain financial documents are recorded. The name comes from the historical practice of physically affixing revenue stamps to documents, though today the tax is simply calculated and collected at closing. Documentary stamps represent one of the largest closing costs in states where they apply.
In Florida, documentary stamps apply to two types of transactions. Doc stamps on deeds (the transfer tax) are calculated at $0.70 per $100 of the sale price in most Florida counties. Miami-Dade County has a lower rate of $0.60 per $100. On a $400,000 home sale, the deed doc stamps would be $2,800 (or $2,400 in Miami-Dade). These are customarily paid by the seller. Doc stamps on mortgages and promissory notes are calculated at $0.35 per $100 of the loan amount and are paid by the buyer. On a $320,000 mortgage, that's $1,120.
In Texas, there are no state documentary stamps or transfer taxes on real property transactions — making Texas one of the more affordable states for closing costs from a tax perspective. However, Texas has other fees and taxes that can affect closing costs. The absence of transfer taxes is one reason Texas is popular with real estate investors and why Beycome Title's flat-fee pricing is particularly competitive in the Texas market.
Documentary stamps are calculated by the title company and collected at closing as part of the standard disbursement process. The settlement agent remits the stamps to the appropriate county office when recording the deed and mortgage. Failure to pay the correct documentary stamps can result in the document being rejected for recording — potentially delaying closing or creating title issues.
At Beycome Title, we calculate all applicable documentary stamps and include them in your closing cost estimate upfront — no surprises at the closing table. For a detailed breakdown specific to your transaction, use our closing cost calculator which factors in your state, county, sale price, and loan amount. Get your free personalized quote today.