Do You Pay Taxes When Selling a House in Florida?
Last updated: May 2026
Max Cohen
Licensed General Contractor · FL Home Buyers
Quick Answer
Florida has no state income tax, so you won't owe the state anything on your home sale profit. You may still owe federal capital gains tax if your gain exceeds $250,000 (single) or $500,000 (married filing jointly). Every seller also pays Florida documentary stamp tax at $0.70 per $100 of the sale price.
Florida is one of nine states with no individual income tax, per Article VII, Section 5 of the Florida Constitution. You won't owe the state a dime on your home sale profit. But the IRS still collects federal capital gains tax, and the state charges transfer taxes at closing.
Federal Capital Gains Tax on Florida Home Sales
When you sell a house for more than you paid, the profit is a capital gain. If you owned the property for more than a year, it's taxed at long-term capital gains rates: 0%, 15%, or 20%, depending on your taxable income. Short-term gains (property held under one year) get taxed as ordinary income, which can run as high as 37%.
Most Florida homeowners won't owe anything, though, because of the Section 121 exclusion. If you've owned and lived in the home as your primary residence for at least 2 of the last 5 years, you can exclude up to $250,000 in gains ($500,000 for married couples filing jointly). On a Florida home bought for $300,000 and sold for $500,000, a married couple pays zero federal capital gains tax.
The exclusion can be used repeatedly, but not more than once every two years.
Florida Documentary Stamp Tax and Transfer Costs
Florida doesn't have a state income tax, but it does collect documentary stamp tax ("doc stamps") on every real estate transfer. The rate is $0.70 per $100 of the sale price in 66 of Florida's 67 counties. Miami-Dade adds a $0.45 surtax per $100, bringing its total to $1.05 per $100 (plus a $0.55/$100 surtax on anything above $100 in consideration for single-family homes).
| Tax or Cost | Rate / Amount | Who Pays |
|---|---|---|
| Doc Stamps (most counties) | $0.70 per $100 | Seller |
| Doc Stamps (Miami-Dade) | $1.05 per $100 | Seller |
| Federal Capital Gains (long-term) | 0%, 15%, or 20% | Seller |
| Property Tax Proration | Based on closing date | Split at closing |
| State Income Tax | $0 (Florida has none) | N/A |
On a $400,000 sale in Palm Beach County, doc stamps come to $2,800. That's a fixed cost regardless of whether you sell to a cash buyer, list with an agent, or sell FSBO.
Property Tax Proration at Closing
Florida property taxes are paid in arrears. At closing, the title company prorates the current year's taxes on the settlement statement: you pay your share through the closing date, and the buyer picks up the rest. Florida's average effective property tax rate is about 0.86%, so on a $400,000 home, expect roughly $1,880 per half year prorated at closing.
1031 Exchanges and FIRPTA Withholding
1031 exchanges let investment property owners defer capital gains tax by rolling proceeds into another qualifying property within 180 days. The property can't be your primary residence, and a qualified intermediary must hold the funds.
FIRPTA (Foreign Investment in Real Property Tax Act) applies to foreign nationals selling U.S. real estate. The buyer must withhold 15% of the gross sale price for the IRS, though lower thresholds apply on sales under $1,000,000.
Does Selling to a Cash Buyer Change Your Taxes?
No. Your capital gains calculation, doc stamp obligation, and property tax proration are exactly the same whether the buyer pays cash or uses a mortgage.
Where a cash sale helps is carrying costs. At FL Home Buyers, we typically close in 7 to 14 days. That's 2 to 3 months of mortgage payments, insurance, and property taxes you don't have to cover while waiting for a traditional buyer's financing to clear. Max Cohen, our owner and a licensed General Contractor, can evaluate a property's condition on the first visit, so there are no drawn-out inspection negotiations either.