Philadelphia BIRT and NPT: a starting guide for small businesses
BIRT and NPT are separate business taxes. Match the return to the business situation and tax year; older BIRT exemption guidance may no longer apply.
Sources checked . General information maintained by Philadelphia Tax with AI assistance. We are an independent directory, not a government agency or tax adviser. Verify the instructions for your tax year and circumstances.
BIRT and NPT are separate business taxes
| Tax | Official starting point | Question to resolve |
|---|---|---|
| Business Income & Receipts Tax (BIRT) | City BIRT instructions describe gross-receipts and net-income components. | What Philadelphia business activity and receipts must this business report? |
| Net Profits Tax (NPT) | City NPT instructions describe tax on profits of specified unincorporated activities, with resident and nonresident distinctions. | How do ownership, entity treatment and residence affect the return? |
A business may have questions under both taxes. NPT does not replace BIRT’s net-income component. The NPT page describes a possible credit tied to BIRT net-income tax; check its instructions rather than treating the two bills as interchangeable.
BRT is different again: the Board of Revision of Taxes handles property-assessment matters. A BRT notice is not a BIRT business-tax return. Use the property-tax guide to separate bills, assessments, relief and appeal resources. Employee Wage Tax is another separate task. Use the Wage Tax guide for payroll-location and refund questions.
What changed? Match the rule to the tax year
| Tax / period | Published change | Filing task and source |
|---|---|---|
| BIRT, tax year 2025 onward | The City says the former exemption for the first $100,000 of gross receipts and a proportionate share of net income is no longer available. | Recheck filing requirements even if older exemption guidance described your situation. BIRT exemptions and instructions; checked 2026-10-23. |
| BIRT, tax year 2025 | The City publishes a year-specific rate table that differs from its 2024 row. | Select the return year’s instructions; do not reuse an older rate or confuse an out-of-city nexus rule with the removed exemption. BIRT year table; checked 2026-10-23. |
| NPT, tax year 2025 | The City’s table provides separate resident and nonresident rates for that year. | Check the correct period and residence treatment independently from BIRT. NPT rate and filing instructions; checked 2026-10-23. |
These rows identify published instructions, not a proposed law or an individualized liability calculation. Numeric rates are left with the City’s tables so readers can select the applicable year. Do not assume that a page published in 2026 describes tax year 2026.
Selling taxable products or services creates a separate records and filing question. Use the Philadelphia sales-tax guide for Pennsylvania administration, item exceptions and the retailer checklist; a BIRT/NPT filing does not replace it.
Filing a return and paying estimates are different tasks
The official BIRT and NPT pages link to the Philadelphia Tax Center guide for online access. Use each tax’s own forms and instructions. BIRT instructions distinguish first/second-year estimated-payment treatment; NPT has its own estimate instructions. An extension to file does not extend the time to pay.
Before submitting, ask the person preparing the return which year and tax account each payment belongs to. Reconcile estimated payments, prior balances and credits separately. Save the City’s confirmations; a completed worksheet in accounting software does not prove that a return was transmitted or paid.
Prepare a focused accounting handoff
- List the business structure, owners, residence questions, operating locations and tax years needing attention.
- Gather reconciled books, sales records, expense support, prior city returns, notices and payment confirmations privately.
- Ask which city returns, estimates and credit reconciliation the quote includes, and who signs and files each return.
- Agree how cleanup, amendments and later City correspondence are priced and handled.
If books are incomplete, ask whether cleanup must finish before return preparation and who resolves missing information. An accountant-category listing does not establish CPA licensure or Philadelphia business-tax experience. Use the existing credential guide before engaging a practice.
Ask a professional about your situation
Ask whether the practice handles the specific return or filing you need, what the written quote includes and how documents are shared securely. A category listing does not establish credentials or experience with this tax.
- Accountants and CPA listings in the Philadelphia region
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- Bookkeeping services in the region
Compare professional qualifications and questions to ask. Keep personal tax documents private; this directory does not receive returns, identity documents or portal credentials.
Related guides
Official sources and applicability
- Philadelphia Business Income & Receipts Tax — BIRT components, tax-year table, exemption removal, estimates and filing/payment distinction.
Tax-year 2025 exemption removal and year-specific instructions; checked 2026-10-23. Checked 2026-10-23. - Philadelphia Net Profits Tax — Unincorporated activity, resident/nonresident distinction, BIRT credit and filing instructions.
Published tax-year 2025 table and current filing instructions. Checked 2026-10-23. - Philadelphia Tax Center guide — Official instructions for accessing City tax accounts and filing/payment tools.
Current official guidance. Checked 2026-10-23. - Philadelphia Board of Revision of Taxes — BRT handles property-assessment appeals and is distinct from BIRT business tax.
Current official guidance. Checked 2026-10-23.
Next source review due 2026-11-22, and before promotion for a new tax year. To report an outdated resource, contact the directory without sending personal tax information.