Transfer tax in a refinance transaction?

Does a lender charge deed transfer taxes in a refinance transaction?

Short answer: No.

Generally, transfer taxes are paid when property is transferred between two parties and a deed is recorded. In a refinance transaction where property is not transferred between two parties, no deed transfer taxes are due. When the same owner(s) retain the property and simply complete a refinance transaction, no new deed is recorded; therefore no new deed transfer taxes are paid.

In various jurisdictions, transfer taxes are also called real estate conveyance taxes, mortgage transfer taxes, and documentary stamp taxes.

In Florida, transfer tax is called a documentary stamp tax. According to Section 201.02(1)(a), Florida Statutes, Deeds and other documents that transfer an interest in Florida real property are subject to documentary stamp tax. Regardless of where the deed or other document is signed and delivered, documentary stamp tax is due. The amount of tax due is computed based on the consideration for the transfer. All parties to the document are liable for the tax regardless of which party agrees to pay the tax. If a party is exempt, the tax must be paid by a non-exempt party.

For transactions where title is transferred such as a sales transaction, the documentary stamps in Florida are calculated at a rate of 70 cents per $100.00 of the sales price rounded up to the nearest hundred. For transactions where title remains with the same parties such as a refinance transaction, no deed transfer taxes are due.