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Florida

A 1031 exchange into or out of Florida.

Florida has no personal income tax, so the state adds little at the income-tax level. What it does add is documentary stamp tax on every deed, and the state you sell in still has its say.

Updated September 30, 2026 · Reviewed by onezero3one professional staff on September 30, 2026

Most Florida exchange questions come from owners selling somewhere else and buying in Florida. For them, the rules of the state they sell in matter more than Florida's: Florida has no personal income tax and no exchange filing of its own that we found, but it does charge documentary stamp tax on the deed you receive.

onezero3one acts as qualified intermediary for exchanges involving Florida property, subject to a review of each file before an exchange agreement is signed. We coordinate with your title agent or closing attorney in both states; we do not give tax or legal advice.

What is specific to this state

The federal rules in IRC §1031 decide whether an exchange qualifies. The items below are state requirements that sit alongside them at closing or on the return. Each links to the official source it was checked against; confirm the current version with your closing agent and tax advisor before relying on it.

State items for an exchange (researched September 30, 2026)
IssueWhat appliesUsually handled bySource
State income tax at closingFlorida does not tax the income of individuals (Fla. Const. art. VII, §5, recited in §220.02, F.S.), and no state withholding or estimated-tax form for real property sales was found. Federal FIRPTA withholding for foreign sellers is separate.
Individual sellers. Corporations follow the Internal Revenue Code by reference for Florida corporate income tax (§220.03, F.S.).		Not applicable at the state levelFlorida Statutes §220.02
Checked September 30, 2026
Documentary stamp tax on deedsDocumentary stamp tax on deeds is 70 cents per $100 of consideration (60 cents plus a surtax in Miami-Dade, except single-family dwellings). Florida DOR states that consideration includes the exchange of property, so an exchange is not exempt. All parties are liable for the tax regardless of which one agrees to pay it.
Both the sale deed and the purchase deed.		Closing agent, under the contract's allocationFlorida Department of Revenue, Documentary Stamp Tax
Checked September 30, 2026

Buying in Florida after selling elsewhere

Federal law treats real property anywhere in the United States as like-kind to other U.S. real property, so selling a rental in New Jersey and buying one in Florida can qualify. The origin state keeps its own requirements:

  • New Jersey: nonresident sellers claim the 1031 exemption on GIT/REP-3 at the sale closing. See New Jersey.
  • New York: nonresident sellers file IT-2663 with box 4B at recording. See New York.
  • California: the Franchise Tax Board requires Form 3840 every year after a California property is exchanged for out-of-state property, until the deferred California gain is recognized. The obligation follows the taxpayer to Florida.

Moving to Florida yourself does not by itself change how the origin state treats a gain it sourced. That is a question for your tax advisor, ideally before the sale.

Documentary stamp tax on both deeds

Florida's documentary stamp tax on deeds is 70 cents per $100 of consideration (in Miami-Dade, 60 cents plus a surtax, except on a single-family dwelling). The Department of Revenue states that consideration includes the exchange of property, so an exchange is not exempt. All parties to the deed are liable for the tax whatever the contract says about who pays it, so check the allocation in your purchase contract.

Selling Florida property

If the relinquished property is in Florida, there is no state income tax withholding or estimated-tax form at closing for individual sellers that we found. Federal FIRPTA withholding for foreign sellers is a separate federal matter. Documentary stamp tax applies to the sale deed as it would to any sale. A corporation's Florida corporate income tax follows the Internal Revenue Code by reference.

Coordinating two closings in two states

  • The exchange agreement, contract assignment and notice to the buyer are signed before the origin-state deed is delivered.
  • The origin-state closing agent sends the net proceeds to the intermediary.
  • The replacement property is identified in writing within 45 days; the Florida purchase closes within 180 days or by the tax-return due date if earlier.
  • The Florida purchase contract is assigned to the intermediary, and the Florida title agent receives the intermediary's funds with verified wire instructions.
  • Title to the Florida property is taken by the same taxpayer who sold, or by that taxpayer's disregarded entity.

The exchange preparation sheet builds this list for your two states.

Questions about Florida exchanges

Do I owe Florida income tax on the gain when I sell Florida property?

Florida does not tax individuals' income, so no. Your home state may, and federal tax applies unless the exchange defers it.

Is documentary stamp tax due on an exchange?

Yes, on each deed. Consideration includes the exchange of property.

I am selling in New York and buying in Florida. Is there anything to file in Florida?

We found no Florida filing specific to exchanges. New York's IT-2663 applies at your New York sale if you are a nonresident of New York.

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