If you have trouble paying your business taxes, School Income Tax, or Earnings Tax, the Department of Revenue will work with you to set up a payment agreement. (There is a separate system for payment agreements for Real Estate Taxes.)
All payment agreements require an affordable down payment and have flexible term limits. The maximum length of a payment agreement is 60 months, but shorter agreements mean fewer—even zero—penalties.
All payment agreements require that you also file and pay your current taxes. You must pay your overdue taxes in addition to any taxes you normally owe.
There are two payment agreement types based on your previous agreement history:
- Preferred – If it’s your first time with delinquent taxes, or you have one previous, completed payment agreement you will receive maximum discounts on penalties, and up to 60 months to pay.
- Standard – All other taxpayers will receive a discount on penalties and have up to 48 months to pay.
If you don’t honor the payment agreement, you must pay accrued interest and penalty charges, and you may face legal action and fines.
You can estimate your down payment and monthly payments using an agreement calculator. Other payment term options may be possible.
Applying for a tax payment agreement
You can submit a request for an agreement online through the Philadelphia Tax Center – here’s how:
- Log into your Philadelphia Tax Center profile,
- Choose “More options” to access the “Payments and returns” tab in your dashboard.
- Select “Request payment agreement”
- Pick a payment plan that fits your budget and set the first payment date. Follow the on-screen prompts to complete the process.
If you haven’t yet created a username and password, please visit the Philadelphia Tax Center to do so now. You will need it to request a payment agreement online. If you have trouble requesting a payment agreement online, please call (215) 686-6600.