Coastal wetlands are globally important stores of carbon (C). However, accelerated sea‐level rise (SLR), increased saltwater intrusion, and modified freshwater discharge can contribute to the collapse of peat marshes, converting coastal peatlands into open water. Applying results from multiple experiments from sawgrass (Cladium jamaicense)‐dominated freshwater and brackish water marshes in the Florida Coastal Everglades, we developed a system‐level mechanistic peat elevation model (EvPEM). We applied the model to simulate net ecosystem C balance (NECB) and peat elevation in response to elevated salinity under inundation and drought exposure. Using a mass C balance approach, we estimated net gain in C and corresponding export of aquatic fluxes () in the freshwater marsh under ambient conditions (NECB = 1119 ± 229 gC m−2 year−1; FAQ = 317 ± 186 gC m−2 year−1). In contrast, the brackish water marsh exhibited substantial peat loss and aquatic C export with ambient (NECB = −366 ± 15 gC m...