Philadelphia Proposes New Taxes on Deliveries and Rideshare Apps

Mayor Cherelle Parker's $6.97 billion budget includes taxes on Uber, Lyft, and some retail deliveries.

Mar. 12, 2026 at 5:24pm

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Philadelphia Mayor Cherelle Parker has proposed a new $6.97 billion budget that includes taxes on ride-hailing services like Uber and Lyft, as well as a tax on certain retail deliveries. The budget also seeks to increase hotel taxes by 2% to help fund the city's five-year plan to end street homelessness.

Why it matters

The new taxes are aimed at generating additional revenue for the city, with the ride-hailing tax earmarked for the School District of Philadelphia and the delivery tax and hotel tax increase intended to support initiatives to address homelessness. These proposals reflect the city's efforts to find new sources of funding for public services and programs.

The details

The proposed budget includes a 20-cent tax per ride on ride-hailing services like Uber and Lyft, which is expected to generate over $9 million in revenue for the School District of Philadelphia. Additionally, a 25-cent-per-order tax on certain retail deliveries, excluding essential items like food and medications, would be charged to retailers. The budget also seeks to increase hotel taxes by 2%, which would generate $20 million to help fund the city's five-year plan to end street homelessness.

  • Mayor Cherelle Parker presented the $6.97 billion budget to City Council on March 12, 2026.

The players

Cherelle Parker

The mayor of Philadelphia who proposed the new budget, including the taxes on ride-hailing services and retail deliveries.

School District of Philadelphia

The recipient of the revenue generated from the proposed 20-cent tax on ride-hailing services.

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What’s next

The proposed budget will now go through the City Council approval process, and the new taxes would need to be authorized at the state and local levels before they can be implemented.

The takeaway

Philadelphia is seeking new revenue sources to fund public services and initiatives, such as education and homelessness programs, through the proposed taxes on ride-hailing services and retail deliveries, as well as an increase in hotel taxes.