Do You Pay Taxes When Selling a House in Florida?
Last updated: June 2026
Max Cohen
Licensed General Contractor · FL Home Buyers
Quick Answer
Florida does not add an individual state income tax to your home-sale profit, but federal tax and closing costs can still apply. The federal home-sale exclusion may shelter up to $250,000 of gain for some single filers or $500,000 for some married joint filers, but rental use, inheritance, depreciation, ownership history, and reporting forms can change the answer.
Florida does not have an individual state income tax, so the state income-tax side is usually simpler than in many other states. That is not the same as saying the sale has no tax cost. Federal capital-gains rules, documentary stamp tax, property-tax prorations, inherited basis, rental history, and reporting forms can still affect the final number.
What I Tell Sellers About Taxes
I'm not a CPA, and I tell sellers to talk to theirs before closing. The basic question is usually federal: what is your basis, what is your gain, did you meet the primary-residence rules, and did rental or business use change the calculation?
For inherited property, federal basis rules may step the basis to fair market value at the date of death. That can reduce the taxable gain, but heirs still need records for date-of-death value, improvements, sale costs, and any estate-specific facts.
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 most Florida counties, doc stamps would be $2,800 before any county-specific differences or closing-statement adjustments. A cash buyer does not erase documentary stamp tax; the written offer and settlement statement should show which seller costs are being covered.
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?
Usually, no. A cash buyer does not by itself change your federal capital-gains formula, documentary stamp tax, or property-tax proration. Your property facts matter more than the buyer's financing: basis, ownership history, rental use, inherited status, liens, payoff, and the final settlement statement.
Where a cash sale helps is carrying costs. A cash buyer removes the buyer mortgage approval step, but the actual closing date still depends on title, payoff figures, liens, HOA items, seller documents, and tax questions. Max Cohen, our owner and a licensed General Contractor, can evaluate a property's condition early so repair questions are part of the written offer instead of a late-stage inspection fight.