What anyone doing business in Philly needs to know about estimated tax payments

In 2026, all Philadelphia businesses must file a Business Income and Receipts Tax (BIRT) return, regardless of their sales volume. Companies that generated less than $100,000 in sales and were exempt from BIRT for the past three years will not need to make estimated payments for their first return. This policy aims to alleviate the financial burden on new businesses and is an expansion of a previous measure. The first tax return for the 2025 tax year is due on April 15, 2026. For the following year, businesses can choose to pay their estimated tax in full or in quarterly installments.

Payment deadlines are crucial, as missing them can incur penalties. The city emphasizes the importance of keeping business records organized, especially for those selling outside Philadelphia. This change reflects Philadelphia's ongoing adjustments to tax policy and aims to support local businesses.