Common Tax Questions When Selling a Probate House in Florida

By Petru Pusta, founder of All About Real Estate

Selling an inherited house raises the same five tax questions in almost every family I work with. Here are the straight answers for Florida.

1. Will we owe capital gains tax?

Usually very little, because of the step-up in basis. When you inherit a house, its tax basis resets to the market value on the date of death. If Mom paid $90,000 in 1995, the house was worth $350,000 when she died, and the estate sells for $355,000, the taxable gain is about $5,000, before deducting selling costs. Florida has no state income tax, so there is no state capital gains tax either.

2. Does Florida have an estate or inheritance tax?

No. Florida has neither. The federal estate tax only applies to estates above $15 million per person in 2026, so almost no families selling a house deal with it.

3. What happens to the property taxes?

Homestead protection and the Save Our Homes cap end with the owner. After a change of ownership, the property appraiser reassesses the house at market value as of the next January 1. For a long-held house, the tax bill can jump sharply in the first full year the heirs own it. That is one reason many families sell before the next bill arrives.

4. Who pays the documentary stamp tax?

Florida charges documentary stamp tax on the deed: $0.70 per $100 of the price, or $0.60 per $100 for a single-family home in Miami-Dade. By custom the seller pays it, but it is negotiable. When we buy, we tell you up front who covers each closing cost.

5. Does the estate file a tax return?

The personal representative files the decedent’s final income tax return. If the estate earns more than $600 in a year, for example from rent or the sale itself, it may need its own return (Form 1041). Your CPA will tell you which applies.

Bottom line

For most Florida families, the step-up in basis means little or no tax on the sale. The bigger cost is usually the months the house sits empty with taxes, insurance and repairs piling up. When we buy a probate house and the estate uses our probate attorney, we also pay the attorney fees.

Want a cash offer instead? Call or text (786) 753-8500 or WhatsApp us. Hablamos español. We answer within 24 hours, buy as-is, and you pick the closing date.

General information, not legal or tax advice. Talk to a Florida attorney or CPA about your situation.

All About Real Estate LLC buys property directly as a principal and is not a real estate brokerage. Petru Pusta is a licensed Florida real estate broker (BK3293808) with Kariza Capital Realty LLC.