Marco Island property owners should prepare for a notable jump in their property tax bills for Fiscal Year 2026, which begins October 1, 2025. At a budget workshop on July 21, 2025, the City Council tentatively approved a General Fund millage rate of 1.6680—an increase of 33.9% over the current rate of 1.2400 mills.

Despite the steep percentage hike, city officials point out that 1.6680 mills would still be the fourth lowest millage rate Marco Island has seen in the past fifteen years. The city has steadily lowered its property tax rate for eight consecutive years, with the current rate ranking among the lowest in Florida. The last property tax increase occurred in 2016, when the millage was set at 2.0466.

This proposed increase is the result of a thorough evaluation of the city’s financial needs, including:

• Deferred maintenance on aging infrastructure

• Improving median landscaping across the city

• Addressing critical road and bridge infrastructure needs

• Rebuilding emergency reserves to better prepare for future weather events

Under the proposed rate, a $1 million home would see its annual property tax rise by $441, while a $500,000 home would face an increase of $239 per year.

The extra revenue, estimated at around $4.5 million, will be dedicated to key projects such as:

• Road resurfacing

• Swale maintenance

• Bridge rehabilitation

• Parks capital improvements

• Median landscaping enhancements

In addition to these infrastructure upgrades, the increased funds will support the city’s capital asset replacement plan, enhance parks maintenance, provide wage adjustments to align city employee salaries with market rates, and contribute an additional $1 million to emergency reserves.

Residents will have the chance to share their feedback during public budget hearings scheduled for August 4th and August 18th. The City Council plans to finalize and adopt the Fiscal Year 2026 budget and property tax rate in September.