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.