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.
| Sector | 2019 | 2020 | Pct. chg. |
|---|---|---|---|
| Hotels | $11,426,027 | $6,149,071 | |
| Restaurants | $54,902,168 | $38,131,666 | |
| Health & social services | $412,430,250 | $418,028,871 | |
| All sectors | $1,944,322,000 | $1,871,705,311 |
