Pennsylvania budget requires some online and out-of-city sellers to collect Philadelphia’s 2% sales tax

Pennsylvania’s enacted 2026-27 budget requires certain online and out-of-city sellers to collect Philadelphia’s additional 2% sales tax on taxable sales delivered into the city, according to Mayor Cherelle L. Parker.

The requirement applies to sellers that already collect Pennsylvania’s 6% state sales tax on deliveries to Philadelphia. It does not mean that Philadelphia’s sales-tax rate increased for every transaction; the city’s announcement describes a collection requirement for covered sellers outside the city and online.

Change follows state budget passage

Parker announced the change on July 13, tying it directly to Pennsylvania’s 2026-27 budget, which was enacted in July. The mayor said the state budget requires the affected sellers to collect both the 6% state tax and Philadelphia’s additional 2% tax on taxable sales delivered to Philadelphia.

The action is at the implementation stage of a state-budget provision, rather than a new Philadelphia tax proposal or a City Council vote on a new rate. The available city announcement identifies the state budget as the source of the collection requirement.

Philadelphia consumers making taxable purchases delivered into the city may be affected when buying from sellers covered by the requirement. The policy also directly concerns online retailers and businesses located outside Philadelphia that make such deliveries.

Scope remains limited to covered taxable sales

The city’s statement specifies taxable sales delivered into Philadelphia. It does not say that the requirement applies to exempt goods or services, and it does not provide a full seller-by-seller implementation schedule.

Nor does the available announcement estimate how much annual revenue the provision is expected to produce for Philadelphia. Those limits are significant because the statement establishes the collection rule but does not provide a city revenue forecast or a universal timetable for compliance.

Connection to Philadelphia’s fiscal framework

The collection change comes alongside Philadelphia’s FY27-31 five-year plan, which City Council adopted in June 2026 and which was published by the city on July 2. That plan provides the city’s official fiscal framework surrounding the approved budget structure.

The state budget provision concerns how the existing additional city tax is collected on covered deliveries, while the five-year plan reflects Philadelphia’s broader fiscal planning. The sources provided do not identify a further City Council action, a separate enforcement date, or a deadline applicable to every seller.

For now, the verified change is that Pennsylvania’s budget requires covered sellers already collecting the 6% state tax on Philadelphia deliveries to also collect Philadelphia’s 2% tax on taxable sales delivered to the city.