Payments, assistance & taxes

Hotel Tax

Due date
15th
of each month, for rentals in the prior month
Tax rate
8.5%

of the total amount received by the host

Who pays the tax

If you temporarily use a guest room in a hotel, motel, inn, bed and breakfast, or any other building in Philadelphia, you must pay Hotel Tax. This includes rooms in private homes if the room is reserved for accommodations. The tax is collected by the operator of the hotel (or other building). It may also be collected and paid by a booking agent, as long as the agent confirms to the operator that the tax has been paid to the City.

Important dates

Hotel Tax filings and payments are due on the 15th of each month, for rentals in the prior month. For example, tax returns and payments for rentals during the month of June are due by July 15.

Hotel operators who collect and pay Hotel Tax may still be subject to other City business taxes. Some possibilities include:

  • Business Income and Receipts Tax (BIRT)
  • Net Profits Tax (NPT)
  • Sales, Use, and Hotel Occupancy Tax
  • Wage Tax (Employers)

Tax rates, penalties, & fees

How much is it?

The City’s Hotel Tax rate is 8.5% of the total amount received by the host. The hotel operator is responsible for collecting the tax from guests.


What happens if you don't pay on time?

Late returns are subject to interest and penalties. In addition, you may be subject to a fine of $2,000 for each time (“occurrence”) you fail to file a return. A separate occurrence happens each month that a return remains unfiled.

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 Hotel Tax.


Can you be excused from paying the tax?

You can be excused from paying Hotel Tax if you have received rent from:

  • Someone who has stayed 30 or more days in a row.
  • Employees of the federal government or the Commonwealth of Pennsylvania who are on official business.
  • Ambassadors and other diplomatic representatives of foreign governments recognized by the United States.

Some booking agents (including websites) agree to collect Hotel Tax on behalf of operators. If you have this agreement with a booking agent, you do not have to file.

How to pay

Residential Hotel Tax payments

If you rent out all or part of your residential property for temporary use, you’ll need to create an account on the City’s Hotel Tax portal to file and pay your Hotel Tax online. Only taxpayers who register for the first time for a Hotel Tax account through the portal will be able to use it to file returns and make payments.

This presumes that you charge and collect the Hotel Tax yourself. If you instead rent through a booking agent who collects and remits the tax on your behalf, you don’t need to file or pay the Hotel Tax yourself.

Commercial Hotel Tax payments

If you are renting a commercial property such as a hotel or motel, you’ll need to send your payment by mail. You can print out payment coupons from a Monthly Hotel Tax Coupon Book from the Department of Revenue’s eFile/ePay site. (Look for the “Payment Coupon” link.)

Mail payments with a coupon to:

Philadelphia Dept. of Revenue
P.O. Box 53180
Philadelphia, PA 19105‐53180

Tax code

23

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