Closing Math: Doc Stamps, Intangible Tax, Prorations & the Statement

Real Estate Related Computations and Closing of Transactions is 6% of the Florida sales associate exam. Nearly every item gives you numbers. The Florida-specific numbers to memorize are the three transfer-related taxes: stamps on the deed, stamps on the note, and the intangible tax on the mortgage. After that, most questions are careful arithmetic plus knowing who is charged and who is credited.

Documentary stamp tax on the deed

Under § 201.02(1)(a), the tax on a deed is 70 cents for each $100 or fractional part of the consideration. Two rules make the math tricky:

• Round up to the next $100. "Or fractional part thereof" means a partial $100 counts as a full unit.
• Consideration includes mortgages. Money paid, the discharge of an obligation, and the amount of any mortgage or lien on the property all count, whether the buyer assumes the mortgage or not.

Miami-Dade is different. Its rate is 60 cents per $100, plus a surtax of 45 cents per $100. The surtax is not due on a document that transfers only a single-family dwelling.

Who pays? Under the Department of Revenue's rule, all parties to the document are liable for the tax, regardless of which party agrees to pay it. The sale contract only decides who actually pays it.

Stamps on the note and intangible tax on the mortgage

Doc stamps on the note (§ 201.08)

35 cents per $100 or fraction of the amount of the debt. A recorded mortgage is taxed at the same 35 cents per $100. When there is both a note and a recorded mortgage, the tax is paid once, on the mortgage at recording, with no cap. The $2,450 cap applies only to notes that are not secured by a recorded mortgage.

Nonrecurring intangible tax (§ 199.133)

A one-time tax of 2 mills (0.002) on each dollar of the obligation secured by a mortgage on Florida real property.

Worked example: one sale, every tax

A home sells for $315,000 outside Miami-Dade. The buyer gives a new note and mortgage for $252,000. The listing agreement provides a 6% commission.

1. Deed stamps: 315,000 ÷ 100 = 3,150 units × $0.70 = $2,205.00.
2. If the price were $315,050, the fraction counts as a full unit: 3,151 × $0.70 = $2,205.70.
3. Note stamps: 252,000 ÷ 100 = 2,520 units × $0.35 = $882.00.
4. Intangible tax: 252,000 × 0.002 = $504.00.
5. Commission: 315,000 × 0.06 = $18,900. If the listing brokerage keeps half ($9,450) and the listing sales associate's split is 60%, the associate earns 9,450 × 0.60 = $5,670.

Prorating Florida property taxes

Florida property taxes are due November 1 of each year, or as soon after that as the certified roll reaches the tax collector. They become delinquent on April 1 of the following year, or 60 days after the original notice is mailed if that is later. The tax lien runs from January 1 of the tax year. So at a closing in June, the current year's bill has not been paid yet. The seller owes the buyer for the days the seller owned the home, and the buyer will pay the whole bill in November.

Example. Estimated annual taxes are $4,380. The contract uses a 365-day year and charges the seller from January 1 through June 9 of a non-leap year.

• Days: Jan 31 + Feb 28 + Mar 31 + Apr 30 + May 31 + Jun 9 = 160 days.
• Daily rate: 4,380 ÷ 365 = $12.00.
• Seller's share: 160 × $12.00 = $1,920.00. This is a debit to the seller and a credit to the buyer.

Always follow the day count and year length the question or contract gives you. The arithmetic method stays the same.

The closing statement and the Closing Disclosure

A closing statement lists each party's charges (debits) and credits. Ask two questions for every item: who owes it, and who receives it.

• Purchase price: debit the buyer, credit the seller.
• New loan: credit the buyer only. The seller is not a party to it.
• Seller's unpaid taxes: debit the seller, credit the buyer.
• Deed stamps and commission: whichever party the contract assigns, usually debited to that party alone.

For a consumer mortgage, the lender must make sure the borrower receives the federal Closing Disclosure at least three business days before consummation. It shows the loan terms, projected payments and closing costs.

Income-tax footnote: transfer taxes such as doc stamps are not deductible on the sale of a personal home. A buyer who pays them adds them to the cost basis, and a seller who pays them treats them as an expense of the sale.

Where this shows up on the exam

Computations and Closing is 6% of the exam (DBPR candidate booklet, January 2025). Expect a deed-stamp calculation (watch for an assumed mortgage or a fractional $100), a note-stamp or intangible-tax calculation, a tax proration, and a debit-or-credit question.

Sources

North Carolina law as published by the General Assembly and the Office of Administrative Hearings, checked 2026-11-05:

• § 201.02, Fla. Stat.
• § 201.031, Fla. Stat.
• § 201.08, Fla. Stat.
• § 199.133, Fla. Stat.
• § 197.122, Fla. Stat.
• § 197.333, Fla. Stat.
• Florida Department of Revenue, Documentary Stamp Tax
• 12 CFR 1026.19(f)
• CFPB, What is a Closing Disclosure?
• IRS Publication 530 (2025)
• DBPR, Florida Real Estate Sales Associate Candidate Information Booklet (Jan 2025), content areas