The present invention is directed to a capacitive touch system and method with auto-calibration. A driving signal generator provides driving signals to first electrodes, thereby resulting in induced signals on second electrodes. An induced signal receiver receives and processes the induced signals. The induced signals associated with at least some no-touch points are measured and pre-stored in an initial value generator, which, at the beginning of a measuring period, generates initial induced signals of the second electrodes according to the pre-stored induced signals for initializing the induced signal generator.