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Business & self-employment

Vehicle Rental Tax

Due date
15th
of each month, for the prior month's activity
Tax rate
2%

of the amount of the rental contract

IMPORTANT UPDATE: From now on, please complete online returns and payments for this tax on the Philadelphia Tax Center. For help getting started, and answers to common questions, see our online tax center guide. We no long accept payment coupons for this tax. You must now file short monthly returns for this tax moving forward.

Who pays the tax

The Vehicle Rental Tax applies when:

  • The rental vehicle is picked up in Philadelphia.
  • The rental lasts for a period of 29 or fewer consecutive days.
  • The vehicle being rented is either:
    • A private vehicle designed to carry 15 or fewer passengers, or
    • A truck, trailer, or semi-trailer used in the transportation of property other than commercial freight.

Vehicle rental companies are responsible for collecting the tax and paying it to the City.

Important dates

Generally, the Vehicle Rental Tax must be filed and paid on or before the 15th day of each month for the prior month’s activity. You can find exact monthly due dates on the miscellaneous taxes due date schedule.

Tax rates, penalties, & fees

How much is it?

The Vehicle Rental Tax is charged at a rate of 2 percent of the amount of the rental contract, excluding state and local taxes and the sale of gasoline.


What happens if you don't pay on time?

If you don’t pay on time, interest and penalties will be added to the amount you owe.

Interest and penalty is due on any unpaid taxes at the rate specified by Philadelphia Code 19-509.

For more information about rates, see our Interest, penalties, and fees page.

Discounts & exemptions

Are you eligible for a discount?

No discounts are available for the Vehicle Rental Tax.


Can you be excused from paying the tax?

You don’t have to pay the Vehicle Rental Tax if the rental:

  • Is for a period of 30 or more consecutive days, or
  • Consists of a fleet of four or fewer rental vehicles.

How to pay

File and pay online

Starting in 2022, you must file and pay Vehicle Rental Tax ONLY electronically on the Philadelphia Tax Center. Use the “Payments” panel on the Philadelphia Tax Center’s homepage to pay your Hotel Tax. We no longer accept coupons or mailed checks.

You must now file short monthly returns for this tax moving forward.

You can pay this tax online without creating a username and password. Nevertheless, you must be logged in to file your Vehicle Rental Tax return. If you haven’t done so already, you must create a username and password to file this tax on the Philadelphia Tax Center.

You can choose to pay and file your return later or complete both at the same time while logged in.

Tax code

14

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