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The Philadelphia City Council passed a Fiscal Year 2026 budget this month, which includes several changes to the City’s tax structure that will be affecting our businesses here in Tacony. To keep all of our residents and business owners informed, we’re including a summary of the proposed changes and workshops that will be hosted by our Corridor Manager, Amarynth, as well as workshops hosted by the City themselves.
In the upcoming structure, tax rates are dropping, but some exemptions are going away including the $100,000 Business Income and Receipts Tax (BIRT) exemption. In the past, businesses with under $100,000 in Philadelphia gross receipts were exempt from filing and paying the BIRT. Due to a legal challenge, businesses will not be able to use this exemption starting January 1, 2026, and thereafter. Businesses must file and pay the BIRT (regardless of income) in 2026 for activities conducted in Philly in 2025.
To help businesses get prepared and give them all the information needed, the Philadelphia Departments of Commerce and Revenue are hosting a series of free in-person and virtual information sessions focused on:
Understanding the upcoming changes to the City’s tax structure
Preparing for next year (what you need to file for 2025)
Learning about free tax preparation services and financial support programs
Finding out where to get personalized assistance for all aspects of doing business in Philadelphia
Businesses will also have the opportunity to learn about the Philadelphia Small Business Catalyst Fund and the Mayor’s Business Action Team. These services are free, but you need to register. You can find all workshop and registration information here. There are several sessions coming up in July so make sure you register now!
The Tacony CDC will be hosting a Business Owner workshop specifically focused on Tax Preparation in the near future. Fill out this interest form to help us determine what date and time work best for everyone.
The Philadelphia Business Tax Services also provides businesses that earn less than $250,000 in annual revenue with free local, state and federal tax preparation. When the program launches later this year, an interest form will become available for interested businesses. Those who are eligible will be matched with vetted accountants from across the city of Philadelphia, who are able to assist with tax preparation in multiple languages including Spanish and Mandarin.
For those who may be behind on their taxes, another resource the City offers is the Voluntary Disclosure Program for Overdue Taxes. If accepted into the program and meet all the requirements, the Department of Revenue will agree to not audit you or assess the taxes covered by the agreement for any period prior to the six year disclosure period and not assess any penalties for the tax years within the disclosure period.
Please contact the TCDC Corridor Manager, Amarynth at amarynth@taconycdc.org or (267) 367-7766 to receive answers to your questions, help preparing your records to file, and for access to other resources for small businesses in Philadelphia. We strongly encourage our businesses to sign up for the Department of Revenue Newsletter to stay up to date on tax issues that might affect your business.
*Disclaimer: any information we collect from our businesses is used only to assist them. It will never be used against anyone.*
