Cape Coral Sets 5.8 Mill Rate for 2027 Property Taxes

The Cape Coral City Commission approved the fiscal year 2027 operating budget on July 8. The document sets the millage rate at 5.8 mills, up from 5.5 mills the prior year. This change applies to all taxable property within city limits and funds general operations including police, fire and road maintenance.

City budgets in Florida are prepared each spring and summer under state statutes that require public hearings before final adoption. The 2027 proposal reflects revenue estimates from property assessments completed by the Lee County Property Appraiser and projected state revenue sharing. Local officials have noted that property values in Cape Coral rose 8 percent on average in the latest assessment cycle.

How the rate change reaches individual households

Property tax calculations begin with a home's assessed value minus any homestead exemptions. For a residence valued at $300,000 with a standard homestead deduction, the new rate adds roughly $90 to the annual city portion of the bill. Residents without exemptions or with higher-value homes face larger dollar increases. The added revenue is allocated in the budget document to street resurfacing projects on streets such as Del Prado Boulevard and to overtime costs in the fire department.

Utility customers will also see indirect effects. The budget includes a transfer from the general fund to the water and sewer enterprise fund that offsets a planned 3 percent rate hike for residential accounts starting in October. City staff estimate this transfer will keep the average monthly water bill increase below $4 for single-family homes.

Local government data from the 2025 fiscal year show that property taxes supplied 42 percent of general fund revenue. The remainder came from sales taxes, franchise fees and intergovernmental transfers. The 2027 budget projects total general fund expenditures of $142 million, with public safety accounting for 38 percent of that total.

Next steps for taxpayers and city operations

Tax bills reflecting the new rate will be mailed by the Lee County Tax Collector in November. Property owners who wish to appeal assessments must file with the county appraiser by the September deadline listed on their notice. City departments will begin expending the approved funds on October 1, the start of the fiscal year.

Residents can review the full budget document and millage resolution on the city's website or request printed copies at City Hall. The commission is scheduled to hold a mid-year budget review in January 2027 to adjust for any revenue shortfalls or emergency needs.