Payments, assistance & taxes

Business Income & Receipts Tax (BIRT)

Due date
April
15th
of each year, for business activity in the prior year
Tax rate

1.415mills

on gross receipts, and 6.39% on taxable net income

Who pays the tax

Every individual, partnership, association, limited liability company (LLC), and corporation engaged in a business, profession, or other activity for profit within the City of Philadelphia must file a Business Income & Receipts Tax (BIRT) return. This includes:

  • Those engaged in commercial or residential real estate rental activity.
  • Estates, trusts, or non-profits engaged in any for-profit business or activity within Philadelphia.
  • Those who maintain a Commercial Activity License (CAL) but do not actively engage in business.

In all of the situations described above, you must file a BIRT return whether or not you made a profit.

If you have a CAL but do not actively engage in business, you must file the BIRT return and tell the City that no business occurred. If you don’t file a return, you will receive a non-filer notice and court costs could be imposed.

You have a responsibility to file a return and pay the tax due, even if you do not receive a tax package from the City. The BIRT can be filed and paid online.

Important dates

The BIRT must be filed and paid by April 15 of each year, for business activity from the prior year. With each filing, an estimate for the following year’s BIRT must be paid in full.

Filing Extension

Taxpayers can apply for an extension of time to file BIRT returns. The extension allows you up to six months from the original due date to file your tax returns. You can file your returns at any time during the six-month extension.

Please be aware that there are no extensions for the payment of taxes. Payments made after the original due date are subject to interest and penalty charges.

Tax rates, penalties, & fees

How much is it?

The current rates for the Business Income & Receipts Tax (BIRT) are 1.415 mills (1.415% per $1,000) on gross receipts, and 6.39% on taxable net income.

The BIRT is based on both gross receipts and net income. Both parts must be filed.

This is a completely separate tax from the Net Profits Tax (NPT), so it’s possible to have to pay both the BIRT and the NPT.


What happens if you don't pay on time?

Payments made after the original tax due date are subject to interest and penalty charges. There are no extensions for tax payments, but you can apply for an extension if you need more time to file your return.

Your Commercial Activity License can be suspended or revoked if you haven’t paid your taxes. For-profit businesses are not allowed to operated in Philadelphia if they don’t have an active Commercial Activity License. This means that if you fall behind with your tax payments, you may have to suspend your business operations until you pay the taxes you owe.

For more information about interest and penalty rates, visit the interest, penalties, and fees page.

Discounts & exemptions

Are you eligible for a discount?

Tax credits

Some tax credits reduce the amount of BIRT owed to the City. Regardless of whether your business qualifies for reductions or exemptions, you’re still required to file a BIRT return.

Tax credits that can be applied against the BIRT include:

  • Community Development Credit
  • Distressed Business Tax Credit
  • Economic Development District Tax Credit
  • Green Roof Tax Credit
  • Jobs Creation Tax Credit
  • Keystone Opportunity Zone (KOZ)
  • Life Partner and Transgender Care Health Benefits Tax Credits
  • Philadelphia Re-Entry Employment Program (PREP)
  • Strategic Development Area Tax Credit
  • Sustainable Business Tax Credit
  • Veterans’ Employment Tax Credit

Visit the Tax Credits section of this site to find specific eligibility and filing requirements. For a complete listing of all credit programs, you can also visit the City’s online Business Services Center.

Active presence

Section 103 of the BIRT regulations includes a definition of “doing business” in Philadelphia. If your business meets certain regulatory criteria, it may qualify for “active presence” treatment. This would be subject to the tax on gross receipts only.


Can you be excused from paying the tax?

Full exemptions are only available to certain organizations. In general, organizations that are exempt from filing and paying the BIRT are:

  • Nonprofits and religious organizations.
  • Individuals engaged in a hobby or other not-for profit activity.
  • Port related activity.
  • Public utilities.

The list above is not exhaustive, and exclusions are based on the facts and circumstances of each business. Review the City’s Code and Revenue’s BIRT regulations to make sure you are eligible for an exemption.

Businesses in the first two years of operations may be exempt from paying BIRT through the Jump Start Philly program.

How to pay

File and pay online

You can file BIRT returns and make payments through the City’s eFile/ePay site.

File a return by mail

Mail your return to:

Philadelphia Dept. of Revenue
P.O. Box 1660
Philadelphia, PA 19105-1660

Pay by mail

Mail all payments with a payment coupon to:

Philadelphia Dept. of Revenue
P.O. Box 1393
Philadelphia, PA 19105-1393

Request a refund by mail

Mail your return and refund request to:

Philadelphia Dept. of Revenue
P.O. Box 1137
Philadelphia, PA 19105-1137

Tax code

24

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