Wage-Tax Revenue in Hard-Hit Industries

Philadelphia’s wage tax is the city’s largest revenue source, which makes the city especially susceptible to economic downturns. The coronavirus pandemic hit some industries much harder than others — especially hotels and restaurants. In other industries, wage-tax collections remained more stable. But city officials will expect some decreases due to remote work and the economic impact of the pandemic.

The chart below shows wage-tax collections in 2020 compared with 2019 overall, for those hardest-hit industries, and health and social services — the city’s largest employment sector.

The frequency with which businesses file wage-tax returns depends on their size. The largest employers file weekly, while others file semimonthly, monthly, or quarterly. Figures represent revenue Jan. through Nov. All sectors includes industries not shown.
Table: DOMINIQUE DeMOE / Staff Artist Source: City of Philadelphia Department of Revenue