• Revenue Fact Sheet: Sales Tax

    A line chart comparing Sales Tax growth with inflation and non-housing consumer spending from FY16 to FY25, showing Sales Tax growth outpacing inflation and tracking with consumer spending until FY23
    Publication Date: February 10, 2026

    Category

    Budget Structure and Process
    Fact Sheet

    Author(s)

    PICA, Rob Call

    File

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    Summary

    Philadelphia’s local Sales Tax provides a stable and growing source of General Fund revenue, supporting City operations, the School District of Philadelphia, and long-term pension funding. From FY16 to FY25, Sales Tax collections grew at a 7.0 percent annual rate, outpacing overall General Fund revenue growth. Looking ahead, Sales Tax revenue is projected to continue growing and make up a larger share of General Fund revenues, though its sensitivity to economic downturns means future performance will depend on household spending patterns.