Marco Island property owners could see a significant increase in their property tax bills for Fiscal Year 2026, which begins October 1, 2025. The City Council, during a budget workshop on July 21, 2025, tentatively approved a General Fund millage rate of 1.6680, representing a 33.9% increase over the current rate of 1.2400 mills.

Despite the substantial percentage increase, City officials emphasize that the proposed 1.6680 mills would still mark the fourth lowest millage rate for Marco Island in the past fifteen years. This comes after the city has consistently reduced its property tax rate for the last eight years, with the current rate being among the lowest in Florida. The last property tax increase in Marco Island occurred in 2016, with a millage rate of 2.0466.

The decision to propose this increase stems from a comprehensive review of the city’s needs, including:

• Deferred maintenance on existing infrastructure

• Addressing deficiencies in median landscaping

• Meeting critical infrastructure requirements for roads and bridges

• A strategic initiative to rebuild emergency reserves as a safeguard against future weather-related events.

Under the proposed rate, a home valued at $1 million would see an annual tax increase of $441, while a $500,000 home would experience an increase of $239 per year.

The additional revenue generated by this proposed increase is earmarked for several vital projects and operational enhancements. Approximately $4.5 million will be specifically allocated to:

• Road resurfacing

• Swale maintenance

• Bridge rehabilitation

• Parks capital projects

• Median landscaping improvements

Beyond these specific infrastructure projects, the increased revenue will also contribute to the City’s capital asset replacement plan, bolster parks maintenance, fund a wage adjustment to bring City employees’ salaries to market rates, and dedicate an additional $1 million to the City’s emergency reserves.

Marco Island residents will have the opportunity to voice their opinions on the proposed budget and tax rate during public budget hearings scheduled for August 4th and August 18th. The final adoption of the Fiscal Year 2026 budget and property tax rate is slated for September.