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Taxing Short-Term Rentals in Philadelphia


 Got a place to rent in Philadelphia? Be sure to pay the proper taxes.

The Philadelphia Department of Revenue has published an information bulletin on the tax requirements for short-term rentals. Short-term rentals are frequently booked through such websites as Airbnb and vrbo (Vacation Rentals by Owner).

Renting a primary residence

The following taxes apply to income earned from the short-term rental of a primary residence (or rooms in a primary residence):

  • Hotel taxes
  • School income taxes

Renting not a primary residence that is owned by a corporation

The following taxes apply to income earned from the short-term rental of a secondary residence (or rooms in a secondary residence) owned by a corporation:

  • Hotel taxes
  • Business income and receipts tax

Renting not a primary residence that is not owned by a corporation

The following taxes apply to income earned from the short-term rental of a secondary residence (or rooms in a secondary residence) not owned by a corporation:

  • Hotel taxes
  • Business income and receipts tax
  • Net profits tax

The department also reminds property owners to obtain a rental license and have housing inspections as needed. Owners of multi-family properties should also check the zoning of the property. Additional information.

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Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Gail Cole
Avalara Author
Gail Cole
Gail Cole
Avalara Author Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.