The City of Philadelphia enacted the following city ordinance, bill no. 250199 in conjunction with the City’s Fiscal Year 2026 Operating and Capital budgets. Net Income and Gross Receipts of the Business Income and Receipts Tax (BIRT) will be reduced for the first time in 17 years. This will be a multi-year strategy to eliminate completely the Gross Receipts portion of BIRT and half the Net Income portion to 2.80% within seven years of fully funding the pension fund.
The recently signed city ordinance furthermore ends the BIRT exclusion on the first $100,000 in taxable receipts beginning in the Fiscal year 2025, taxes owed in 2026 and after.
For more detailed information on the FY26 Operating and Capital budgets visit the City of Philadelphia website. (City of Philadelphia, Bill No. 250199, signed June 13, 2025.)