🎯 STRisker: Bulletin - Delaware County, PA

Hotel Tax Hike Aims to Boost Delco’s Profile

Delaware County Council has unanimously approved raising the hotel occupancy tax from 3% to 5%, effective April 1.

The increase, effective April 1, is expected to generate up to $6.4 million annually. That’s nearly double the current $3.5 million collected. The tax applies to short-term stays of less than 30 days, meaning hotels, motels, and vacation rentals will all be part of the mix.

Hotel-Motel Tax | Delaware County, Pennsylvania

|AttentionNew Online Reporting & Payment System Coming in 2026Delaware County’s Hotel Motel 3% TaxThe 3% tax is due on rentals to ALL persons -- including employees of federal, state or local governments -- with the sole exception of “permanent residents”—individuals who occupy a room for a period exceeding 30 consecutive days.Delaware County’s 3% Hotel Tax should not be confused Pennsylvania’s State Hotel Tax of 6% on room rentals (and meals). Unlike the county’s tax, the State tax exempts rentals to ambassadors, ministers, consular officers and federal employees on official business.The two taxes are separate and the exemptions from the state tax do not apply to the County’s hotel tax.The Charter defines a “Permanent Resident as “Any individual person who has occupied or has the right to occupy any room or rooms in a hotel as a patron or otherwise for a period exceeding 30 consecutive days; the term “permanent resident” shall not include any patron or business entity which reserves a room or rooms, whether specified or unspecified, in any hotel unless said room or rooms are each used by the same individual person for a period exceeding 30 consecutive days. See Pennsylvania’s Hotel Occupancy Tax, 72 P.S. § 7210, the Tax Reform Code of 1971. Hotel Room Rental Tax Forms|

Delaware County, Pennsylvania

Council introduced the idea last June, eyeing the busy calendar of events in the region. With Philadelphia hosting the FIFA World Cup, America250 celebrations, and the PGA Championship, Delaware County wants to ensure it has the resources to attract and serve visitors.

Visit Delco, the county’s tourism promotion agency, will receive the funds. Executive Director Steve Byrne noted that 66 of Pennsylvania’s 67 counties already charge a hotel occupancy tax. Neighboring counties like Bucks and Chester have reaped millions more by setting their rates at 5%.

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Byrne highlighted the economic impact of tourism: 4.5 million visitors in 2024 spent $840 million, creating 13,000 jobs and generating $68 million in local taxes.

“This is an exported tax,” Byrne said. “It’s not on county residents. It’s money used to promote tourism.”

Visit Delco has already begun investing in marketing efforts, from interactive signage at historic sites to multilingual website features for international guests. They’ve also supported local events, like a Gaelic football match that generated 600 room nights.

Council members praised the move. Elaine Paul Schaefer called it “a sound investment,” Joanne Phillips said it would “create jobs and business,” and Christine Reuther emphasized its role in improving tourism.

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