Taxes in Cape Coral
Cape Coral property tax bills stack the city's own general fund millage on top of Lee County's and the school district's levies -- three separate layers rather than one flat number. Beyond property tax, residents benefit from Florida's lack of a state income tax and pay a modest local sales tax add-on.
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Learn moreCape Coral's own city millage
Cape Coral City Council adopted a general fund millage rate of 5.1471 mills for fiscal year 2025-2026, described as the 'rollback' rate -- down from 5.2188 mills the prior year -- meaning the rate was set to keep total property tax revenue roughly level despite rising assessed values, per Cape Coral Breeze reporting on the council's September 2025 budget vote. There is also a separate, smaller millage tied to parks general obligation bonds, cited around 0.1608 mills in city budget documents. This is a real, distinguishing fact: Cape Coral's own municipal millage runs notably lower than some peer Florida cities' city-level rates (for comparison, Fort Myers' city general fund millage is 6.5000 mills for the same fiscal year).
County and school levies stack on top
Lee County Commissioners held the county's general fund millage flat at 3.7623 mills for fiscal year 2025-2026 -- the same rate as the prior year, though that flat rate still runs about 4.04% above the 'rolled-back' rate as property values have climbed, per Gulfshore Business reporting. Lee County's combined countywide layered millage (county, school, and other countywide levies) totals roughly 15.97 mills for 2025, of which the school portion accounts for about 5.32 mills, per TaxByCounty's compiled figures. These stack with Cape Coral's own city millage for any parcel inside city limits -- no single number represents your actual bill; check the specific parcel on the Lee County Property Appraiser's site.
Illustrative math only -- not a real bill
As an illustrative example only -- combining Cape Coral's city general fund (5.1471), the county general fund (3.7623), and an approximate school portion (5.32) mills, before any exemptions or special-district add-ons, comes to roughly 14.2 mills, somewhat below Lee County's cited 15.97-mill countywide combined total (which includes areas with higher city or special-district rates). Applied to Cape Coral's roughly $370,000 median sale price (a midpoint of the range cited on the housing-market page), that works out to a rough $5,250-a-year gross tax bill before any homestead exemption or Save Our Homes cap -- illustrative only, since actual assessed value, exemptions, and special-district assessments vary by parcel.
No state income tax, and a 6.5% combined sales tax
Florida is one of a small number of states with no personal income tax, a fact enshrined in the state constitution -- often the single largest tax-line difference for retirees and remote workers relocating from a state with one. The combined sales tax rate in Lee County (including Cape Coral) is 6.5% for 2026 -- Florida's 6% state rate plus Lee County's 0.5% discretionary surtax, which applies only to the first $5,000 of a single item's sale price. There is also no state estate or inheritance tax, though federal estate tax rules still apply regardless of state of residence.
The homestead exemption and Save Our Homes cap
For a primary residence, Florida's homestead exemption for 2026 totals $51,411: a fixed $25,000 slice that reduces assessed value for all levies, including school taxes, plus a second, inflation-indexed slice ($26,411 for 2026) that reduces assessed value for non-school levies only. Once homesteaded, a property's assessed value increase is capped each year at the lesser of 3% or the change in the Consumer Price Index -- 2.7% for 2026. Relocating buyers should budget their first-year tax bill off the purchase price, not off the seller's prior, much lower long-held assessed value.
Key takeaways
- Cape Coral's own city general fund millage is 5.1471 mills for FY2025-26 (the 'rollback' rate, down from 5.2188) -- notably lower than some peer Florida cities' municipal rates, e.g. Fort Myers' 6.5000 mills.
- Lee County's general fund millage is 3.7623 mills (held flat for FY2025-26); the combined countywide layered rate (county, school, other levies) runs roughly 15.97 mills for 2025, with schools accounting for about 5.32 mills.
- Illustrative math only: combining city, county, and school millage (roughly 14.2 mills) against a ~$370K median sale price works out to about $5,250/year before exemptions -- actual bills vary by parcel and any special-district assessments.
- No Florida state income tax, no state estate/inheritance tax, and a 6.5% combined sales tax (6% state + 0.5% Lee County surtax, capped to the first $5,000 of a single item).
- The 2026 homestead exemption ($51,411) and Save Our Homes cap (2.7% for 2026) apply the same way as elsewhere in Florida but do not reduce a first-year buyer's bill.
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