The City of Cape Coral (as with all of Florida) has no personal income tax. Sales tax is 6 percent, and there are no taxes on personal services. The corporate income tax rate is 5.5 percent and is assessed on gross receipts and not on existing inventory.

The city has a total real estate property tax, which includes county, school, miscellaneous taxes, that averages 17.3401 per $1,000 of assessed value (the City of Cape Coral portion is 4.8325) . Florida has a Homestead Exemption law that allows eligible homeowners to deduct $25,000 from the assessed value prior to computation of taxes due.

Cape Coral also is one of only three cities in Florida that does not have public services taxes. This results in considerable savings for residents. The public service tax charged by other cities can range up to 10 percent and is based on consumption of electricity, water, telecommunications, and bottled or metered gas.