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

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?

Interest is due on any unpaid taxes at the rate specified by Philadelphia Code 19-509. In addition, penalty will be due at the rate of 1.25% for each month the tax remains unpaid.

For more information about interest and penalty rates, visit the 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 or four or fewer rental vehicles.

How to pay

Pay by mail

You are responsible for paying the tax due to the City on time, whether or not you receive a coupon book by mail. Payment coupons can be printed from the Department of Revenue’s filing and payment site. (Look for the “Payment Coupon” link.)

Mail your monthly payment and coupon to:

Philadelphia Dept. of Revenue
P.O. Box 806
Philadelphia, PA 19105-0806

Pay monthly taxes of $10,000 or more online

Vehicle rental companies that collect and pay $10,000 or more per month in tax must file and pay electronically through Automated Clearinghouse (ACH) Credit or Debit.

Tax code

14

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