In this paper, a new method for the wireless detection of liquid level is proposed by integrating a capacitive IDC-sensing element with a passive three-port RFID-sensing architecture. The sensing element transduces changes in the liquid level to corresponding fringe-capacitance variations, which alters the phase of the RFID backscattered signal. Variation in capacitance also changes the resonance magnitude of the sensing element, which is associated with a high phase transition. This change in the reactive phase is used as a sensing parameter by the RFID architecture for liquid-level detection. Practical measurements were conducted in a real-world scenario by placing the sensor at a distance of approximately 2 m (with a maximum range of about 7 m) from the RFID reader. The results show that the sensor node offers a high sensitivity of 2.15∘/mm to the liquid-level variation. Additionally, the sensor can be used within or outside the container for the accurate measurement of conductive- or non-conductive-type liquids due to the use of polyethylene coating on the sensitive element. The proposed sensor increases the reliability of the current level sensors by eliminating the internal power source as well as complex signal-processing circuits, and it offers real-time response, linearity, high sensitivity, and excellent repeatability, which are suitable for widespread deployment of sensor node applications.