Philadelphia Proposes 25¢ Delivery Tax to Fund Pothole Repairs

Mayor Cherelle Parker's $7 billion budget plan includes a new delivery tax to support dedicated pothole repair crews.

Apr. 2, 2026 at 3:51am

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Philadelphia officials are considering a plan that would connect road repairs to the growing volume of package deliveries across the city. Mayor Cherelle Parker proposed a 25-cent fee on certain retail deliveries to help fund new 'pothole squads' as part of a $7 billion city budget plan.

Why it matters

Road damage has been widely reported across Philadelphia this year after repeated winter weather events, with residents sharing images of large potholes that have damaged vehicles. The delivery tax proposal aims to tie the cost of road upkeep to the businesses that rely on the city's streets for package deliveries.

The details

The spending plan allocates $7.1 million to create six dedicated pothole repair teams, one for each of the Streets Department's highway districts. The crews would proactively patrol streets and repair potholes before residents file 311 complaints. City officials estimate the squads could fix about 15,000 potholes each year. To fund the new repair teams and other road maintenance, Mayor Parker proposed a 25-cent delivery tax that would apply to retailers like Amazon, Instacart, Walmart, and others that meet the city's volume thresholds. Certain items like food, medications, and wholesale goods would be exempt from the tax.

  • Mayor Parker proposed the delivery tax plan during her annual budget address on March 12, 2026.
  • The delivery tax is expected to take effect on July 1, 2027, if approved.
  • Philadelphia repaired more than 50,000 potholes in 2025 and over 60,000 in 2026.

The players

Cherelle Parker

The mayor of Philadelphia who proposed the delivery tax and pothole repair plan as part of the city's $7 billion budget.

Kristin Del Rossi

A Philadelphia city official who attributed the surge in road damage to brutal winter weather conditions.

Rob Dubow

A Philadelphia finance official who said the delivery tax approach connects road upkeep costs to delivery activity.

Brianna January

A representative from the Chamber of Progress, a technology policy group that has opposed the delivery tax proposal.

Lauren Alden

A director at the advocacy group Liberty Resources, who said the delivery tax could make independent living more difficult for residents with disabilities.

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What they’re saying

“It is a roadmap to self-sufficiency. A path that makes it easier for every Philadelphian to move up and not just get by.”

— Cherelle Parker, Mayor of Philadelphia

“More crews, more equipment, and more action to keep our roads in good repair.”

— Cherelle Parker, Mayor of Philadelphia

“In other words, businesses that rely on our streets for deliveries will help to maintain them.”

— Cherelle Parker, Mayor of Philadelphia

“There is going to be a lot of opposition and a lot of meaningful conversation.”

— Brianna January, Representative, Chamber of Progress

“For these residents, delivery is often a necessity rather than a convenience.”

— Lauren Alden, Director, Liberty Resources

What’s next

City Council has started examining the proposal during budget hearings, and public comment sessions began on March 25. City law requires the budget to be approved by June 30.

The takeaway

The delivery tax proposal aims to address Philadelphia's persistent pothole problem by tying the cost of road repairs to the businesses that rely on the city's streets for package deliveries. However, the plan has drawn opposition from industry groups and concerns from advocates for residents with disabilities who rely on delivery services.