Credit card processing and merchant services in Philadelphia, PA
Philadelphia merchants must accept cash, may not discount card payments, and now apply the 2% city sales tax by delivery address. We help you set up payments that follow all three.
Philadelphia's sales tax is 8%, the state's 6% plus the city's 2%. What changed in 2026 is where that 2% applies. Act 21 of 2026 ties the city's tax to the delivery address, and the City says enforcement started on October 1, 2026. Sellers based outside Philadelphia that already collect the state tax now owe the 2% on taxable sales delivered to Philadelphians. If your business is in the city and ships to customers elsewhere, your checkout should calculate tax from the delivery address as well.
The city's cash rule is stricter than most. Chapter 9-1132 of the Philadelphia Code says a business selling consumer goods or services at retail can't refuse cash. The City's regulations add two twists: you can't charge extra for paying with cash, and you can't offer a discount for paying any other way. So there's no lower "card price" in Philadelphia. Phone, mail and online sales are exempt, but an order placed online and picked up in person counts as a retail sale, so that customer can pay cash.
Pennsylvania doesn't restrict credit card surcharges, so only the Visa and Mastercard limits apply to one here. Run any surcharge plan past the city's cash rules before you post it.
Philadelphia's estimated population on July 1, 2025 was 1,574,281 (Census Bureau QuickFacts). We price on interchange-plus and give every account a dedicated rep, and a free statement review is the quickest way to see what accepting cards really costs you. Statewide rules are on the Pennsylvania page.
Rules that matter in Philadelphia
Cash acceptance ordinance
Philadelphia Code Chapter 9-1132 bars people selling consumer goods or services at retail from refusing cash. Under the City's regulations, a retail dealer may not offer a discount for payment by means other than cash, or add a penalty or extra charge for paying with cash.
Exceptions include phone, mail and online transactions, membership wholesale clubs, stores that require payment through an affiliated app, and app-based rideshare. An order placed by phone or online and completed in person at the seller's location is a retail transaction, so cash must be accepted.
Source: City of Philadelphia, Regulations on cash payments in retail establishments
The 2% city sales tax follows the delivery address
Under Act 21 of 2026, Philadelphia's 2% local sales tax applies to taxable sales delivered to customers in Philadelphia. Businesses outside the city that already collect Pennsylvania's 6% must collect and remit the 2% on those sales. The law took effect on enactment, July 12, 2026, applies to tax years after December 31, 2025, and enforcement began October 1, 2026. It does not change which products and services are taxable.
Sources: City of Philadelphia, Philly's sales tax rules are changing: here's what you need to know (September 8, 2026); Pennsylvania Department of Revenue, Local sales tax
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Common questions
What is the sales tax rate in Philadelphia?
8%: Pennsylvania's 6% plus Philadelphia's 2% local sales tax. Under Act 21 of 2026, the 2% applies to taxable sales delivered to customers in Philadelphia, wherever the seller is located, with enforcement from October 1, 2026.
Can a Philadelphia business go cashless?
Generally not. Philadelphia's ordinance bars refusing cash for consumer goods or services sold at retail. Phone, mail and online sales, membership wholesale clubs, stores that require payment through their own app, and app-based rideshare are excluded. Online orders picked up in person still count as retail sales.
Can I give a discount for paying by card or app?
No. Under the City's regulations, a retail dealer may not offer a discount for paying by means other than cash, and may not add a penalty or extra charge for paying with cash.
Do I charge Philadelphia's 2% on orders shipped outside the city?
Under Act 21 of 2026, local sales tax follows where the product or service is delivered, not where the seller sits. A taxable order shipped to an address outside Philadelphia and Allegheny County takes the 6% state rate, and one delivered into Allegheny County takes 7%.
Can Philadelphia businesses add a credit card surcharge?
With no Pennsylvania surcharge statute, Philadelphia businesses follow the Visa and Mastercard rules: surcharge credit cards only, never above your cost, up to 3% on Visa and 4% on Mastercard, post notice at the entrance and at checkout, and show the fee on the receipt. Make sure the setup also fits the city's cash rules.
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Disclaimer: general information, not professional advice
This page is general educational information, not legal, tax, accounting or financial advice. Rules and rates vary by place and change, so confirm them with the official source and a qualified professional before you act. Full terms are in our Terms of Service.
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