Philadelphia’s Real Estate Tax and Realty Transfer Tax together generate about one-fifth of General Fund revenues, making them the City’s second largest revenue source. While the Real Estate Tax grows relatively steadily with property values and revaluations, the Realty Transfer Tax is far more volatile, responding sharply to interest rates, transaction volume, and high-value commercial…

Philadelphia’s smaller taxes, including the Mechanical Amusement Device, Outdoor Advertising, Tobacco, and Development Impact Taxes, collectively generate less than 0.1 percent of General Fund revenues but serve targeted policy purposes. Although collections grew at a 10.0 percent annual rate from FY16 to FY25, total revenue remains modest, with the Development Impact Tax now accounting for…

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…

The Philadelphia Beverage Tax was enacted in 2017 to help fund Pre-K, community schools, and capital improvements, with the understanding that it would supplement rather than fully sustain these programs. Collections have declined steadily over time, with a compound annual growth rate of -1.8 percent from FY18 to FY25, reflecting reduced sugary drink consumption and…

As the City of Philadelphia prepares its FY27–31 Five-Year Financial Plan, PICA outlines five recommendations to strengthen the Plan’s transparency and accuracy and to improve the City’s fiscal condition. These include maintaining reserves and pension funding commitments, scoping initiatives more accurately, ensuring an adequate labor reserve, publishing capital spending data, and making staff vacancy assumptions…

Philadelphia’s Amusement Tax applies a 5.0 percent levy on in-person entertainment like sporting events, concerts, and clubs, generating the vast majority of its revenue from professional sports teams. After a sharp pandemic-era drop, collections rebounded with a compound annual growth rate of 9.4 percent from FY16 to FY25 and are projected to grow more modestly…

Revenues from Other Funds reflect transfers into the General Fund from other City funds, most notably the Grants Revenue, Water, and Aviation Funds, to pay for services more efficiently managed centrally. Federal COVID-19 relief caused a dramatic spike in ROF from FY22 to FY25, but these revenues are projected to return to historical levels—about one…

Locally Generated Non-Tax revenue includes fines, fees, permits, and investment earnings collected by City departments and plays an important role in diversifying Philadelphia’s General Fund. From FY16 to FY25, LGNT revenues grew steadily at a compound annual rate of 5.4 percent, though they are projected to decline slightly through FY30 due to reduced interest earnings…

The City of Philadelphia’s business taxes, the Business Income and Receipts Tax (BIRT) and the Net Profits Tax (NPT), contributed 12.0 percent of General Fund revenues from FY16 to FY25, with BIRT accounting for more than 94 percent of business tax revenue. Although rates have steadily declined over the last decade, business taxes remain among…

Philadelphia’s Wage and Earnings Tax remains the City’s largest single source of General Fund revenue, projected to generate one-third of General Fund revenues from FY26 to FY30, not including the PICA Tax. Although rate reductions have modestly slowed growth, the Wage Tax has shown steady performance over the last decade, driven by compensation in sectors…

Philadelphia relies on more than $1B in intergovernmental revenue each year, with the largest share coming from the PICA Tax, which supports flexible General Fund spending. Over the past decade, ROG grew at a compound annual rate of 5.9 percent, driven primarily by economic growth and wage gains, though non-PICA sources like federal and state…

As Philadelphia’s financial officials begin building the FY27 budget and monitor FY26 spending, they are also finalizing the books for FY25, which closed on June 30, 2025. A timely and accurate Annual Comprehensive Financial Report (ACFR) is essential for transparency, legal compliance, and continued access to capital markets, with a February 28 deadline tied to…