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 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:
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.