State Documentary Stamp Tax on Notes

State Documentary Stamp Tax on Notes The documentary stamp tax on notes is a tax charged on the execution of a promissory note (the legal document where a borrower promises to repay a debt). Unlike the intangible tax, which only applies to new loans, the stamp tax on notes applies to both new mortgages and assumed mortgages. This is because in both scenarios, a promissory note is being used or assumed as a legal instrument of debt. This tax is calculated based on the loan amount, not the purchase price, and like the other loan-related taxes, it is typically paid by the buyer.