How to Calculate Florida Intangible Taxes Due on a Note

Calculating Florida's Intangible Tax

Florida intangible tax is a Florida state tax which is levied on lended money and is due and collected at the closing of your loan. On any bank, credit union or finance company loan (for property or otherwise), a note is created. The note is the document that creates and explains the debt, shows the loan amount and explains how the debt will be repaid. Intangible tax is calculated on the loan amount shown in the note. Not all states require intangible tax on loans, and those that do can vary in the amount. Florida's fee amount for this tax is $.20 per $100 or $2 per $1,000 of lended money.

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Step 1

Find the correct loan amount by calling the lender to get an exact figure. If you are refinancing your mortgage, the lender may be increasing the payoff amount to include your closing costs. Since these costs are included in the new loan, intangible tax will need to be collected on the total amount when you close your loan.

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Step 2

Divide the correct loan amount by $1,000. Example: If the loan amount is $100,500, dividing by $1,000 will give you $100.50. This represents the number of thousands you are paying intangible tax on.

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Step 3

Multiply the $100.50 (from the example in previous step) by $2, which will give you $201 as the amount of Florida intangible tax to collect on a loan amount of $100,500.

Tip

If you are closing a first and a second mortgage simultaneously in Florida, intangible tax is figured and added for both mortgages and will be listed in costs on your HUD1 (closing statement).

Things You'll Need

  • Correct loan amount

  • Calculator

  • Pen and paper

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