I'm considering opening a HELOC to fund a BRRRR. I'm looking for my first deal. I own my Single Family Home in Florida and have some equity I can access. However, my Father-in-law mentioned that he got hit with a HELOC tax when he opened a HELOC on his home in New York. Even though he didn't access the HELOC funds, he had to pay a tax to the state of NY for a percentage of the total credit line. I've tried searching the internet, but I can't find out if Florida does the same thing.
Question:
Does the state of Florida tax individuals who open a HELOC?
@Weston Whitaker it depends on the county,. Palm beach county has a doc stamp fee to record the mortgage at a rate of .70 per $100 or .7%. In other words.
It is a state tax, not a county one, so it is state wide. The doc stamp for a transfer of property is $.70 per $100. The doc stamp for note is $.35 per $100 of the value of the note.
Miami-Dade has an additional county tax on top of it.
So to answer the OP question, yes you will have to pay a 0.35% doc stamp on the max value of the HELOC. This will be part of your closing cost for the HELOC. Some banks will pay for it, some will debit it to you.
I've never heard of a tax on HELOC funds. That being said It sounds like a very NY thing to do. I mean who taxes funds on loans? Im sure the loan officer could tell you for sure
Thanks for the quick reply guys. I didn't suspect that we would run into that in Florida, but I wanted to make sure. I'll start the HELOC process and confirm with the lender.
Investor · Lake Worth, FL · Member since 2016 · 233 posts · 140 votes
5y
@Weston Whitaker it depends on the county,. Palm beach county has a doc stamp fee to record the mortgage at a rate of .70 per $100 or .7%. In other words.
@Weston Whitaker it depends on the county,. Palm beach county has a doc stamp fee to record the mortgage at a rate of .70 per $100 or .7%. In other words.
It is a state tax, not a county one, so it is state wide. The doc stamp for a transfer of property is $.70 per $100. The doc stamp for note is $.35 per $100 of the value of the note.
Miami-Dade has an additional county tax on top of it.
So to answer the OP question, yes you will have to pay a 0.35% doc stamp on the max value of the HELOC. This will be part of your closing cost for the HELOC. Some banks will pay for it, some will debit it to you.