PHILADELPHIA, PA — As sweeping changes to Philadelphia’s business tax rules take effect, the Parker administration has rolled out a new lifeline for small businesses facing unfamiliar and more complex filing requirements.
City officials announced the launch of the Philadelphia Free Business Tax Preparation Program, a citywide initiative offering free local, state, and federal tax preparation assistance to businesses earning less than $250,000 in annual revenue. The program, administered by the Department of Commerce, will provide services both virtually and in person, with assistance available in multiple languages.
Mayor Cherelle L. Parker said the program builds on broader efforts to make Philadelphia more business-friendly at a moment when compliance pressures are increasing. She pointed to recent reforms, including changes to the Mayor’s Business Action Team and the launch of the Philadelphia Small Business Catalyst Fund, saying the new tax preparation program is designed to help businesses navigate shifts in the city’s tax structure while staying focused on growth.
Helping businesses remain tax-compliant is critical, officials said, because it affects access to financing, credibility with lenders, and long-term stability. Karen Fegely, acting director of the Department of Commerce, said the city decided to expand the program after a successful pilot and will continue recruiting tax professionals throughout the filing season to meet demand.
The initiative is backed by significant funding. In its fiscal year 2026 budget, the Parker administration set aside nearly $40 million to expand Commerce Department business programs, including $11.2 million for education and capacity-building efforts such as free tax preparation, and $25.6 million for direct capital assistance to businesses.
The timing is deliberate. Taxes are due April 15, 2026, and city officials are urging businesses to prepare now. Kathleen McColgan, commissioner of the Department of Revenue, said the city and the Department of Commerce have already reached thousands of businesses through virtual and in-person workshops since June 2025, focusing on recent changes to Philadelphia’s tax structure and available support resources.
The program launched with 19 vetted tax professionals located across the city, collectively offering assistance in more than a dozen languages, including Spanish, Mandarin, Cantonese, Ukrainian, Russian, Vietnamese, Arabic, Korean, and French. Language availability varies by provider.
City officials said they are actively seeking additional tax professionals, particularly in Council Districts 6 and 9, and are encouraging bilingual applicants, especially those offering services in Haitian Creole, Khmer, and Portuguese. Proposals from interested tax professionals must be submitted by January 27, 2026.
Eligible businesses can apply now and throughout tax season. Business owners may contact the program manager at businesstaxprep@phila.gov or reach the Mayor’s Business Action Team at (215) 683-2100 for personalized assistance in multiple languages, including help with applications and navigating city requirements.
Additional details and ongoing updates are available at https://www.phila.gov/businesstaxprep.
For many small businesses facing their first encounter with new tax obligations, city leaders said the message is clear: help is available, and preparing early could make the difference between falling behind and staying on solid ground as Philadelphia’s tax landscape shifts.
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