Property owners in Cape Coral pay a combined millage of roughly 15.38 mills for fiscal year 2026, with the city’s own operating rate at 5.1471 mills. Cape Coral tax rates also include a 6.5% sales tax on most purchases, a 7% public service tax on electricity and natural gas, a local communication services tax of 5.22%, and non-ad valorem assessments for fire protection and lot mowing that appear on the annual property tax bill.
Property Tax Millage for 2026
A mill equals one dollar of tax per $1,000 of taxable value. On a home with a taxable value of $200,000, the combined 15.38 millage produces about $3,076 in ad valorem tax before exemptions. The total is stacked from more than a dozen separate levies from the city, county, school district, and special districts.
For fiscal year 2026, the City of Cape Coral set its operating millage at 5.1471 mills, a reduction from the prior year.1City of Cape Coral. City Council Approves 2026 Budget, Lowers Millage Rate The city also levies 0.1608 mills for parks voted debt service. The rest of the bill comes from other authorities:
- Lee County General Revenue: 3.7623 mills
- Lee County Library: 0.4218 mills
- Lee County All Hazards: 0.0693 mills
- School District, state required: 3.0710 mills
- School District, local board: 2.2480 mills
- Cape Coral Operating: 5.1471 mills
- Cape Coral Parks Voted Debt Service: 0.1608 mills
- South Florida Water Management District: 0.2301 mills combined
- West Coast Inland Waterway: 0.0394 mills
- Lee County Hyacinth Control: 0.0192 mills
- Lee County Mosquito Control: 0.2116 mills
The lines add to approximately 15.3806 mills.2Lee County Government. FY25-26 Annual Budget Book Your parcel’s exact total can shift slightly depending on which special districts apply.
Homestead Exemption and Save Our Homes
If Cape Coral is your permanent residence, Florida’s homestead exemption removes the first $25,000 of assessed value from all property taxes, including school levies. A second $25,000 exemption applies to the assessed value between $50,000 and $75,000 but does not reduce school taxes.3The Florida Legislature. Florida Code 196.031 – Exemption of Homesteads For a typical Cape Coral home, the combined effect is well over $500 in annual savings.
The bigger long-term benefit is the Save Our Homes cap. Once your homestead is on file, assessed value can rise no more than 3% per year or the change in the Consumer Price Index, whichever is lower, no matter what happens to market value.4The Florida Legislature. Florida Code 193.155 – Homestead Assessments After a few years of appreciation, the gap between market value and assessed value can be worth thousands a year on your bill.
If you sell and buy another Florida primary residence, portability lets you transfer that assessment difference to the new home, up to $500,000, provided you establish the new homestead within three tax years and file the portability application by March 1.4The Florida Legislature. Florida Code 193.155 – Homestead Assessments
Senior and Veteran Exemptions
Homesteaded residents aged 65 or older with adjusted household income at or below $38,686 for 2026 qualify for an additional exemption on the non-school portion of their bill. The income limit is adjusted annually for inflation.5Florida Department of Revenue. Two Additional Homestead Exemptions for Persons 65 and Older
Veterans with a service-connected permanent and total disability owe no property tax on their homestead, and the full exemption transfers to an unremarried surviving spouse. Veterans with a disability rating of 10% or greater receive a $5,000 reduction in assessed value. Partially disabled veterans aged 65 or older with a combat-related disability receive a percentage discount on ad valorem taxes matching their disability rating.6Florida Department of Veterans’ Affairs. Housing
Non-Ad Valorem Assessments on Your Tax Bill
Two flat charges land on the annual property tax bill and catch new owners off guard because they aren’t part of the millage calculation.
The fire service assessment has two tiers. Every parcel pays a Tier 1 base of $349.32. Improved parcels also pay $3.47 per equivalent benefit unit, calculated in $5,000 increments of structure value from the Lee County Property Appraiser.7City of Cape Coral. Tax Billed Assessments (Non-Ad Valorem Taxes) A typical single-family home comes to roughly $530 per year. Vacant lots still owe the Tier 1 base.
Vacant lots are also automatically enrolled in the city’s mowing program, which cuts participating parcels 13 times a year between February and December. To opt out, owners must keep vegetation under 12 inches and notify the city in writing by September 1. When a lot changes hands, the new owner has 30 days to request the exemption before the parcel goes back on the schedule.7City of Cape Coral. Tax Billed Assessments (Non-Ad Valorem Taxes)
Sales Tax
Purchases in Cape Coral are taxed at 6.5%. Florida applies its 6% state sales tax to most retail goods and taxable services.8The Florida Legislature. Florida Code 212.05 – Sales, Storage, Use Tax Lee County adds a 0.5% discretionary surtax.9Florida Department of Revenue. Discretionary Sales Surtax Information for Calendar Year 2026
The county surtax only applies to the first $5,000 of a single item’s price, so the local portion on a $30,000 boat is capped at $25 rather than $150.10Florida Department of Revenue. Discretionary Sales Surtax Groceries for home consumption and prescription drugs are fully exempt from state sales tax. Prepared food, alcohol, and over-the-counter medications are not.
Public Service and Communication Taxes
Cape Coral applies a 7% public service tax to electricity and natural gas purchases within city limits, and the tax also applies to water service. It shows up as a line item on your monthly utility bills.11City of Cape Coral. Public Service Tax
Telephone, cable, and satellite services are subject to Florida’s communication services tax. Cape Coral’s local rate is 5.22%, added to the state rate on your bill.12Florida Department of Revenue. Florida Communications Services Tax Internet-only service is generally exempt under federal law. Bundles that include voice or video may be partially subject to the tax.
When Property Taxes Are Due and What Late Costs
The Lee County Tax Collector mails tax bills in November, with payment due by March 31.13Lee County Tax Collector. Real Estate Property Taxes Paying early earns a declining discount: 4% in November, 3% in December, 2% in January, 1% in February.14Florida Department of Revenue. Florida Property Tax Calendar On a $4,000 bill, paying in November saves $160.
Payments can be made online, by mail, or at Tax Collector branch offices. Credit card payments carry a processing fee. A quarterly installment plan is available if you apply by April 30 of the year before taxes are due. Miss the first installment by July 31 and you’re dropped from the plan.15Lee County Tax Collector. Payment Options
Unpaid taxes go delinquent on April 1 with a 3% minimum interest charge, then accrue at 18% per year until the county sells a tax certificate against the property, usually in June.16The Florida Legislature. Florida Code 197.172 – Interest Rate; Calculation and Minimum Treat March 31 as a hard deadline.
Short-Term Rental Tax
Rent your property for six months or less and the rental income is subject to both the 6% state sales tax and a 5% Lee County tourist development tax, for a combined 11% on each booking. Hosts must register with the Florida Department of Revenue, collect the tax from guests, and remit the tourist tax portion to the Lee County Tax Collector, typically monthly. Airbnb and Vrbo collect and remit the state sales tax automatically in many cases, but the local tourist tax obligation often still falls on the owner.
Tangible Personal Property Tax for Businesses
Businesses owe an ad valorem tax on furniture, equipment, computers, and fixtures at the same combined millage rate that applies to real estate. Florida provides a $25,000 exemption, but you must file Form DR-405 with the Lee County Property Appraiser by April 1 to claim it. If your total tangible personal property value is $25,000 or less, no return is required. Failing to file when required brings a 25% penalty on the tax owed for each year missed, calculated without the exemption.