Philadelphia 2025 Tax Changes
In 2025, the city of Philadelphia made changes to the Business Income & Receipts Tax (BIRT) and will be effective in 2026. If you have not paid BIRT before because of the $100,000 exclusion, starting in 2025 this exemption non longer applies. The BIRT will apply on all gross sales made in the city of Philadelphia.
However, The Philadelphia Business Tax Preparation program will provide small businesses earning less than $250,000 in revenue with free local, state and federal tax preparation assistance. That includes navigating several changes to the City’s tax structure.
Business eligibility:
Must be based in Philadelphia (must have a business address, or if homebased must live in Philadelphia
Have earned revenue of $250,000 or less in 2024
Check the link below to stay updated of when you can apply:
Coming soon: free business tax preparation program | Department of Commerce | City of Philadelphia
the City of Philadelphia