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 is what Tampa sellers should plan for.
By Scott Mayhew, Realtor® · Broker Associate, RE/MAX Champions · Tampa, FL
There is no Florida state income tax on your home sale profit. Federal capital gains tax can apply, but many homeowners owe nothing thanks to the home sale exclusion: up to $250,000 of gain if single and $500,000 if married filing jointly, when you owned and lived in the home at least two of the last five years. Florida also charges a documentary stamp tax on the deed, $0.70 per $100 of the price, customarily paid by the seller.
Taxes and Tax-Like Costs at a Glance
| Item | What it is | Who it affects |
|---|---|---|
| Federal capital gains | Tax on profit above your cost basis | Gains above the exclusion, second homes, rentals |
| Home sale exclusion | Up to $250K single / $500K married of gain excluded | Primary residence, 2 of the last 5 years |
| Depreciation recapture | Tax on depreciation taken on a rental | Former rentals |
| Florida doc stamps | $0.70 per $100 of sale price | Customarily the seller |
| Property tax proration | Your share of the year’s taxes | Every seller, at closing |
| FIRPTA withholding | Withholding on sales by foreign sellers | Non-U.S. sellers |
How to Estimate What You May Owe
- Start with what you paid, plus purchase closing costs and capital improvements. That is your cost basis.
- Subtract it from your sale price minus selling costs. That is your gain.
- If it was your primary residence for 2 of the last 5 years, subtract up to $250,000 or $500,000.
- What’s left may be taxable. A CPA can confirm, especially for rentals, inherited homes or partial use.
Special Situations
Inherited homes
Usually a stepped-up basis to date-of-death value, which often means little or no gain.
Rentals and second homes
No primary-residence exclusion, and depreciation may be recaptured.
Moving within Florida
Homestead portability may let you carry Save Our Homes savings to your next Florida home.
Selling before two years
A partial exclusion may apply for job moves, health or other qualifying reasons.
Frequently Asked Questions
Do you pay state income tax when you sell a house in Florida?
No. Florida has no state personal income tax, so there is no state tax on the profit from your home sale.
How much capital gains tax do you pay on a Florida home sale?
It depends on your gain, how long you owned it and your federal tax bracket. Many primary residence sellers owe nothing because of the $250,000 single or $500,000 married exclusion.
What is Florida’s documentary stamp tax?
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 basis to the value at the date of death, which often reduces or eliminates the gain. Confirm with a tax professional.
What happens to my homestead exemption when I sell?
It ends with the sale, but Florida portability may let you transfer some of your Save Our Homes savings to a new Florida homestead 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.
Know Your Numbers Before You List
Scott will estimate your sale price and net proceeds so you and your tax professional can plan.