1031 Exchange in Florida: A Plain-English Investor Guide.

A 1031 exchange in Florida follows the federal rules that apply everywhere: 45 days to identify, 180 days to close, Qualified Intermediary required. Florida has no state income tax, so there is no Florida-state capital gains tax to defer. What matters most for Florida investors is the documentary stamp tax on real estate transfers, the property tax structure, and Florida’s deep in-state market for both investor sellers and replacement buyers.

Last updated: June 2026 · For Florida-resident accredited investors

The federal rules in 60 seconds.

A 1031 exchange lets you sell investment real estate and reinvest the proceeds into like-kind replacement property while deferring federal capital gains tax. Two firm deadlines apply: Day 45 to identify replacement property in writing to your Qualified Intermediary, and Day 180 to close on it.

Your sale proceeds must go to the QI, not to you. Taking constructive receipt blows up the exchange. For the complete federal framework, see our 1031 Exchange Guide.

Florida’s tax interaction with Federal 1031.

Florida does not impose a state personal income tax. There is no state-level capital gains tax to defer through a 1031, and no state-level conformity question. A Florida 1031 exchange defers only federal capital gains tax and federal depreciation recapture. Florida residency is one reason Florida is a common destination for out-of-state investors using 1031 to relocate appreciated investment property into the state.

Florida does impose a documentary stamp tax on real estate transfers: $0.70 per $100 of consideration in most counties, and $0.60 per $100 plus a county surtax in Miami-Dade. A 1031 exchange does not avoid this transfer tax; the doc stamp is paid at closing on both the relinquished property and the replacement property if both are in Florida. For a sale and purchase totaling $4 million, that can mean roughly $28,000 in total doc stamps across the two closings. Build it into your underwriting.

Practical implication. Florida property tax follows a “Save Our Homes” cap (3% annual increase) only for homestead property; non-homestead investment real estate is subject to a 10% annual cap on assessed value increases (with some exceptions) and a full reset to fair market value upon sale. Plan property tax on the replacement property at its acquisition value, not at the seller’s historical assessed value.

Qualified Intermediary notes for Florida investors.

Florida does not impose a state-specific licensing regime for Qualified Intermediaries. All major national QIs serve Florida. The standard diligence questions apply:

Florida-specific consideration: most Florida closings are handled through title insurance companies or real estate attorneys depending on the region (North Florida tends toward attorneys; South Florida toward title companies). A QI with established Florida relationships moves faster through both paths.

Common questions from Florida investors.

Where Florida investors find replacement property.

Florida has a deep in-state market across multifamily (Tampa, Orlando, Jacksonville, South Florida metros), industrial (Central Florida, Jacksonville logistics corridor), and net-leased retail and medical office. Many Florida investors stay in-state for replacement property to keep the property tax structure familiar and the management team local.

Common out-of-state destinations include Tennessee, North Carolina, and Texas: Sunbelt markets with similar demographic tailwinds and no or low state income tax. DSTs holding institutional-grade Sunbelt property are a common replacement vehicle for Florida investors who want passive ownership and complete the exchange within the 45-day window.

For more on how DSTs work as 1031 replacement property, see our DSTs Explained guide. For evaluating the sponsor of any DST you consider, including the framework we apply to our own offerings, see our Sponsor Evaluation Framework.