The Broker's Guide to Surplus Lines Stamping Fee By State

The surplus lines stamping fee by state is the one cost item brokers most often miscalculate when quoting non-admitted placements. The fee sits on top of the premium tax, and together they add 3.5% to 5.3% to the total transaction cost depending on the state. Stamping offices across the 16 active stamping office states collected over $5.1 billion in taxes and fees in 2025, per NAIC 2025 data. Brokers who quote before confirming the correct fee schedule hand clients a surprise invoice at binding or quietly absorb a margin hit they did not plan for.

This guide gives you the exact fee rate for each stamping office state, the premium tax that accompanies it, how fees get calculated on gross premium, who pays, and how to track fees across multi-state accounts.

Key Takeaways

• California SLSO charges 0.25% of gross premium as its stamping fee, the highest rate among all active stamping offices as of 2026.
• Texas SLTX charges 0.05% of gross premium, Florida FSLSO charges 0.06%, and New York ELANY charges 0.15%, per each office's 2025 fee schedule.
• Stamping fees apply to gross premium including all policy fees and installment surcharges in most states, not net premium only.
• Multi-state accounts file only with the insured's home-state stamping office under NRRA, paying that state's fee and tax rate on 100% of the premium.
• Late filing penalties range from $1,000 to $25,000 per violation in most states, separate from and in addition to the stamping fee itself.
• Illinois charges 0.10% as its stamping fee with a 3.5% premium tax rate, meaning total added cost on a $100,000 Illinois surplus lines policy is $3,600.

Stamping Fee and Premium Tax Rate by State

The table below shows current stamping fee rates and accompanying premium tax rates for all active stamping office states. Stamping fee rates reflect each office's published 2025-2026 fee schedule.

Note: New York does not have a formal stamping office building the way other states do, but ELANY functions as the required filing intermediary and charges a stamping fee. The 3.6% rate reflects the standard New York surplus lines tax; New York City adds an additional municipal tax for risks located within the five boroughs.

How Stamping Fees Are Calculated

Stamping fees are a percentage of gross premium. The definition of gross premium matters because it determines the fee base.

Gross premium includes: The base policy premium quoted by the non-admitted carrier, policy fees, inspection fees, minimum premiums, and installment surcharges where the state includes these in the taxable base.

Gross premium typically excludes: The surplus lines premium tax itself and the stamping fee itself. You do not pay a fee on the fee.

Example calculation for a California surplus lines placement:

• Base carrier premium: $180,000
• Policy fee: $500
• Gross premium: $180,500
• California SLSO stamping fee (0.25%): $451.25
• California premium tax (3.0%): $5,415
• Total client cost: $186,366.25

Brokers who calculate the fee on the base premium only ($180,000 x 0.25% = $450) generate a $1.25 deficiency. The stamping office auto-calculates the fee from the gross premium field in the portal. If that number does not match what you submitted, the filing triggers a deficiency notice.

Who Pays the Stamping Fee

The broker pays the stamping fee to the stamping office at the time of filing. The broker then recovers that cost from the insured.

Most brokers pass the stamping fee through to the insured as a separate line item on the invoice. This is standard practice and NAIC model guidelines support transparency in surplus lines cost disclosure.

Some brokers absorb the stamping fee into their agency fee structure. This approach can cause margin problems when writing in high-fee states (California SLSO at 0.25%) versus low-fee states (Texas SLTX at 0.05%) if the agency fee structure was built assuming a uniform cost.

Wholesale brokers passing business to retail agents need clear communication about who handles the stamping fee payment to the office. The surplus lines broker of record is legally responsible for the filing. If the retail agent collects premium and fails to pass the stamping fee to the wholesale broker, the wholesale broker still owes the stamping office.

Tracking Fees Across Multi-State Accounts

Multi-state accounts with operations in several states require one stamping office filing under NRRA, not one per state. The filing goes to the insured's home-state stamping office. The home-state fee and tax rate apply to 100% of the premium.

This simplification matters for fee tracking. On a large multi-state commercial account, the pre-NRRA approach required splitting the premium across each state where risk was located, applying each state's fee and tax rate, and filing separately with each state's stamping office or DOI. The complexity generated errors.

Under NRRA (effective July 2011), the process is: identify the insured's principal place of business, apply that state's stamping fee and premium tax to the total account premium, file once with that state's stamping office.

Example multi-state account:

• Insured headquarters: Texas
• Operations in: California, Florida, Illinois, New York
• Total surplus lines premium: $500,000
• Home state: Texas
• Texas SLTX stamping fee (0.05%): $250
• Texas premium tax (4.85%): $24,250
• Filing: One filing with SLTX
• Separate filings with California, Florida, Illinois, or New York: Not required under NRRA

A $500,000 account that would have generated $12,000-$16,000 in multi-state fees and taxes before NRRA now generates $24,500 in combined Texas fee and tax. Texas happens to have a higher premium tax rate than most states, which is the trade-off. Brokers writing in California with multi-state accounts benefit from the same consolidation.

Endorsements, Cancellations, and Audit Adjustments

The original stamping fee covers the initial policy filing. Policy changes generate additional fee obligations.

Endorsements with additional premium. When an endorsement increases the premium, the broker must file the endorsement with the stamping office and pay a fee on the additional premium. The fee rate is the same as the original policy rate. An endorsement adding $20,000 in premium on a California policy generates a $50 additional stamping fee (0.25% x $20,000).

Cancellations. Short-rate or pro-rata cancellations require a cancellation filing with the stamping office. The return premium reduces the earned premium, and the broker receives a credit on the unearned portion of the stamping fee. Processing time for cancellation credits: 30-60 days at most stamping offices.

Audit adjustments. Premium audits on general liability, workers compensation, and commercial auto surplus lines policies generate additional premium (AP) or return premium (RP) at audit. AP adjustments require a filing with the stamping office and a fee on the additional premium. Most states require audit adjustment filings within 60-90 days of the audit completion date.

Endorsements with no premium change. Coverage changes, additional insured endorsements, and other administrative endorsements that do not change premium generally do not trigger an additional stamping fee. File them with the stamping office for record purposes, but no payment is due.

How to Avoid Late Filing Penalties

Filing deadlines vary by state and begin from the policy effective date, not the binding date. Florida's 30-day window is the tightest. California allows 45 days. Texas and New York allow 60 days.

Late filing penalties in 2025-2026, per state insurance code schedules:

• California: 10% of the tax due for filings submitted after the 45-day deadline
• Texas: $500 to $1,000 per late filing depending on days late
• Florida: 10% penalty for 1-30 days late; 15% for 31-60 days late; 25% for 60+ days late
• New York (ELANY): Late fees assessed on a sliding scale based on days late
• Illinois: $500 per violation for filings submitted after the 90-day deadline

The most practical approach to eliminating late filings: treat the stamping office filing as part of the binding process, not a month-end paperwork task. When you bind the policy, open the stamping office portal and start the filing. Complete it within 5 business days of the effective date. This approach gives a 25-55 day buffer before any state's deadline and eliminates virtually all late filing penalty exposure.

Handling Fees for Large Commercial Accounts

Exempt commercial purchasers (ECPs) under NRRA may not require the same diligent search process as standard surplus lines placements, but the stamping fee still applies. ECPs are insureds that meet specific criteria: aggregate nationwide premium over $100,000, employ a full-time risk manager, meet net worth or revenue thresholds, and are in specified industries.

The ECP exemption eliminates the diligent search requirement in most states but does not waive the stamping fee, the premium tax, or the filing obligation. Brokers who advise ECP clients that surplus lines placements are simpler in terms of diligent search documentation are correct. Brokers who suggest fees are lower are not.

On large commercial accounts, the stamping fee becomes a meaningful dollar amount. A $2,000,000 surplus lines premium account placed in California generates a $5,000 SLSO stamping fee. That number should appear clearly on the broker's invoice to the client.

FAQ

What is the surplus lines stamping fee in California?

California's Surplus Line Association (SLSO) charges 0.25% of gross premium as its stamping fee. On a $100,000 gross premium policy, the stamping fee is $250. California also charges a 3.0% surplus lines premium tax on gross premium, bringing total added costs to $3,250 per $100,000 in premium. The stamping fee applies to the initial policy filing and to endorsements that change premium. California's stamping fee is the highest rate among all active stamping offices as of 2026.

How does Texas SLTX calculate its stamping fee?

Texas SLTX charges 0.05% of gross premium, the lowest rate among major stamping office states. On a $100,000 gross premium policy, the SLTX stamping fee is $50. Texas also charges a 4.85% surplus lines premium tax, making the total added cost $4,900 per $100,000 in premium. Despite the low stamping fee, Texas has one of the higher premium tax rates among stamping office states. SLTX processes electronic filings within 24-48 hours for most transactions.

Does the stamping fee apply to the premium tax or to the gross policy premium?

The stamping fee applies to gross premium, which is the total premium charged to the insured including policy fees and applicable surcharges. It does not apply to the premium tax or to the stamping fee itself. The premium tax also applies to gross premium separately. Both calculations use the same base. Brokers who calculate the fee on net premium (excluding policy fees) will generate a deficiency notice when the portal auto-calculates the fee from the gross premium field.

Who is responsible for paying the stamping fee to the stamping office?

The surplus lines broker of record is legally responsible for paying the stamping fee to the stamping office. The broker pays the fee at the time of filing through the stamping office portal (via ACH or credit card where accepted). The broker then recovers this cost from the insured, typically as a separate line item on the invoice. Wholesale brokers who receive the policy from a retail agent are responsible for the filing and payment regardless of how premium collection is structured between the retail and wholesale brokers.

How do stamping fees work on multi-state surplus lines accounts?

Under NRRA, multi-state surplus lines accounts file with the insured's home-state stamping office only. The home-state stamping fee rate and premium tax rate apply to 100% of the account premium. For example, a Texas-domiciled insured with operations in five states pays the Texas SLTX fee (0.05%) and Texas premium tax (4.85%) on the entire premium. There is no separate filing or separate fee obligation for the other states where the insured has locations. This one-filing approach simplifies tracking but requires correctly identifying the insured's principal place of business.

What happens if a broker fails to pay the stamping fee at filing?

A filing submitted without the required stamping fee payment fails validation and the portal will not accept the submission. If a fee payment fails after submission (ACH rejection, for example), the stamping office will issue a deficiency notice. The filing moves to deficient status until the fee is successfully paid. Continuing to operate without curing the deficiency can result in the stamping office reporting the deficiency to the state DOI. Penalties for willful non-payment of stamping fees are treated as violations of state surplus lines law, which carries fines of $1,000 to $25,000 per violation.

Written by Javier Sanz, Founder of BrokerageAudit. Last updated April 2026.

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