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Vehicle Rental Tax

Overview

This is imposed as an excise tax on the rental of a Rental Vehicle in the City of Philadelphia. This occurs whenever a renter takes possession of a Rental Vehicle in the City of Philadelphia.
 
Taxable transactions are rentals for a period of 29 or fewer consecutive days of a private passenger motor vehicle designed to transport 15 or fewer passengers or a truck, trailer or semi-trailer used in the transportation of property other than commercial freight where custody or possession is taken in Philadelphia.

The Vehicle Rental Tax is filed and paid monthly for the prior month's activity.

Who Must File

  • Vehicle Rental Companies

The vehicle rental tax shall be collected by a Vehicle Rental Company at the time a Rental Vehicle is rented by that Vehicle Rental Company, and shall be remitted by the Vehicle Rental Company to the City.

Exclusions from the Vehicle Rental Tax

  • Rentals for a period of 30 or more consecutive days.
  • Rentals of a fleet of 4 or less rental vehicles.

Overview

Tax Type Code
14

Rate
2%

Mail Payments with Coupons to
Philadelphia Dept. of Revenue
PO Box 806
Philadelphia, PA 19105-0806

Vehicle Rental FAQs

  • Can you go to jail if you do not pay your taxes?