Philadelphia Business License Estimator logo

Philadelphia Business License & BIRT Tax Estimator

The license is free. The tax starts at dollar one. Here is the real math.

Frequently Asked Questions

Last updated: October 2026

These are the questions people ask us most about business licenses and fees in Philadelphia, answered the short way first. This site is not a government agency; we estimate from published schedules and point you to the official office for the final word. For the calculator itself, start on the home page.

How much does a business license cost in Philadelphia?
Nothing. The Commercial Activity License is free and lifetime. The real cost is the BIRT tax, which applies from the first dollar of receipts.

What is BIRT?
The Business Income and Receipts Tax: Philadelphia's tax on businesses, with two parts. You pay 0.141% (1.410 mills) on gross receipts plus 5.71% on net income, using tax year 2025 rates.

Is there really no $100,000 exemption anymore?
Correct. The exemption was eliminated for tax year 2025 after a legal challenge. If you do business in Philadelphia, you file, even under $100,000 in receipts.

Do I owe BIRT if my business lost money?
You still owe the gross receipts portion on your receipts, but the net income portion is zero in a loss year. Losses from 2022 onward can be carried forward up to 20 years.

Will BIRT rates change?
Yes, downward, in principle. The city has enacted a long-term plan to eliminate the gross receipts portion and cut the net income rate to 2.80% by FY39, but no fixed year-by-year schedule is published. We update this page as rates are released.

Is this an official government website?

No. This is an independent resource operated by Perfect Option MBC, LLC. We are not a government agency and we are not affiliated with any city or state. Every estimate points back to the official published schedule so you can confirm the number at the source.

Is the calculator free?

Yes. The calculator and this guide are free to use, with no account and no sign-up. The numbers you enter are calculated in your browser and are not stored or sent to us.

How current are the fees?

We work from the fee schedules and tax rules the city publishes, and we update our math when the city updates its schedule. Fees do change, sometimes mid-year, so treat every result as a well-sourced estimate and confirm the final figure with the city before you budget around it.