Do You Pay Taxes When You Sell a House in Florida?
Florida has no state income tax, but federal capital gains tax and a few Florida closing costs can still apply. Here’s what Tampa sellers should know.
The short version
Florida has no state income tax, so there is no state tax on the profit from selling your home. Federal capital gains tax can apply, but many homeowners owe nothing thanks to the home sale exclusion: up to $250,000 of gain for single filers and $500,000 for married couples filing jointly, if you owned and lived in the home for at least two of the last five years.
Separately, Florida charges a documentary stamp tax on the deed, $0.70 per $100 of the sale price, which sellers customarily pay at closing.
Taxes and tax-like costs when selling
| What it is | Who it usually affects | |
|---|---|---|
| Federal capital gains | Tax on profit above your cost basis | Gains above the exclusion, rentals and second homes |
| Home sale exclusion | Up to $250,000 single / $500,000 married of gain excluded | Primary residence owned and lived in 2 of the last 5 years |
| Depreciation recapture | Tax on depreciation claimed on a rental | Former rentals |
| Florida doc stamps | $0.70 per $100 of sale price on the deed | Customarily paid by the seller |
| Property tax proration | Your share of this year’s property taxes | Every seller, settled at closing |
| FIRPTA withholding | Withholding on sales by foreign sellers | Non-U.S. sellers |
How to estimate what you will owe
- Find your cost basisWhat you paid, plus closing costs and capital improvements over the years.
- Subtract it from your net sale priceSale price minus selling costs gives your gain.
- Apply the exclusionIf the home was your primary residence for 2 of the last 5 years, subtract up to $250,000 or $500,000.
- Talk to a tax professionalRentals, partial use, inheritances and recent moves change the math.
Florida home sale taxes: common questions
Do you pay state income tax when you sell a house in Florida?
No. Florida does not have a state personal income tax, so there is no state tax on your home sale profit.
How much capital gains tax do you pay when you sell a house in Florida?
It depends on your gain, how long you owned the home and your federal tax bracket. Many primary residence sellers owe nothing because of the $250,000 single or $500,000 married exclusion.
What is the documentary stamp tax in Florida?
A tax on the deed of $0.70 per $100 of the sale price, customarily paid by the seller at closing.
Do I pay taxes when I sell an inherited house?
Inherited homes usually get a stepped-up cost basis to the value at the date of death, which often reduces or eliminates the gain. A tax professional can confirm your situation.
What happens to my homestead exemption when I sell?
It ends with the sale, but Florida’s portability rules may let you transfer some of your Save Our Homes savings to a new Florida homestead if you buy within the time limit.
This guide is general information, not tax or legal advice. Tax rules change and depend on your situation, so confirm details with a CPA or tax attorney.
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