Philadelphia’s general fund budget is approximately $3.9 billion in Fiscal Year 2009.
Below is a breakdown of how that revenue was generated and an explanation of the categories.

Wage Tax - The Wage Tax is collected on Philadelphians’ employment income and is the City’s largest revenue source.

Business Privilege - The Business Privilege Tax is comprised of two taxes on Philadelphia businesses: a 0.1415% tax on gross receipts (revenue) and a 6.45% tax on net income (profits).

Real Estate Transfer - A 3% Real Estate Transfer Tax is levied on every property sale in the City. As an example, a property selling for $100,000 brings $3,000 into city coffers.

Property - Property Taxes in Philadelphia are low by big city standards, and the assessment system is highly controversial. At present, the City levies an annual 8.26% tax, but assesses real estate at just 32% of its market value. And market values are actually pegged at just 70% of resale values. Thus, in reality the property tax is approximately 2% of a property’s actual value.

Sales - On all non-exempt goods (examples exempt from the Sales Tax are food, clothing, and prescription drugs), the City collects a 1% Sales Tax and the Commonwealth a 6% tax, thus 7% in total taxes at the point of sale.

Other - Minor taxes include the 5% Amusement Tax collected on admission to special events, movies, or concerts, and the 20% Parking Tax on parking in a City garage.

Other Governments - Philadelphia, like all cities, receives a portion of its operating budget via state and federal aid. Most of this money is specifically earmarked for certain departments and/or programs.

Local Non-Tax - This refers to user fees such as Licenses and Inspections permits and cable television franchise fees.