of the amount of the rental contract
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.
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% of the rental purchase price excluding state and local taxes. The charge for gasoline is not taxable if separately stated on the rental invoice.
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
You must file and pay Vehicle Rental Tax electronically on the Philadelphia Tax Center. We no longer accept coupons or mailed checks.
You must file short monthly returns for this tax moving forward.
You can pay this tax online without creating a username and password, but you must log in to file your 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.