Upper Darby, PA Local Taxes & Fees: Business Tax Classification (2026)
Key Facts
- Wholesale rate
- 1 mill per dollar of volume
- Retail/restaurant rate
- 1.5 mills per dollar of volume
- License year
- April 1 to March 31
- Final return deadline
- June 15 each year
- Temporary business deposit
- $20 estimated mercantile tax
Summary
Upper Darby's Mercantile Tax splits businesses into three rate classes: wholesale, retail, and combined wholesale-and-retail. Wholesale volume is taxed at one mill and retail volume at 1.5 mills on every dollar of the whole volume of business transacted each license year.
A. Wholesale vendors or dealers in goods, wares and merchandise of every kind shall pay a tax at the rate of one mill on each dollar of the whole volume of business transacted during the license year; B. Retail vendors or dealers in goods, wares and merchandise of every kind and all persons engaged in conducting restaurants or other places where food, drink or refreshments are sold shall pay a tax at the rate of 1 1/2 mills on each dollar of the whole volume of business transacted during the license year; and C. Wholesale and retail vendors or dealers in goods, wares and merchandise of every kind shall pay a tax at the rate of one mill on each dollar of the whole volume of wholesale business transacted and 1 1/2 mills on each dollar of the whole volume of retail business transacted during the license year.
Full Breakdown
Chapter 489, Article II, § 489-13 levies an annual mercantile license tax on every person engaging in a taxable occupation or business in the Township. Wholesale vendors or dealers pay one mill on each dollar of their whole volume of business for the license year. 5 mills on each dollar of whole volume. 5 mills on the retail share, computed separately. The license year runs April 1 through March 31, per § 489-11's definitions, and the tax is collected by the Finance Director acting as Collector.
Section 489-14 sets how volume is computed depending on when a business started: a full year of operation before the license year uses actual gross receipts from the prior 12 months, a partial year multiplies the monthly average by 12, and a business starting mid-year prorates by the months remaining. Temporary, seasonal or itinerant businesses and off-street retail sales compute tax on actual gross volume during the license year and must post a $20 estimated deposit under § 489-16C, with a first and final return due within seven days of completing the business under § 489-15B(4). Final returns for all other taxpayers are due by June 15 under § 489-14E and § 489-15C. "
Violations & Fines
Section 489-22 enforces the Mercantile Tax Ordinance by civil complaint under the Pennsylvania Rules of Civil Procedure. A civil finding of liability caps the penalty at $1,000 plus prosecution costs and Township attorneys' fees for building, housing, health, fire or public-safety code violations, and at $600 plus costs and fees for other ordinance violations; each day of continued noncompliance and each violated subsection is a separate offense.
Frequently Asked Questions
How is Upper Darby's Mercantile Tax rate set for a retail store versus a wholesaler?
When is the Upper Darby Mercantile Tax license year and final return due?
Does a temporary vendor in Upper Darby owe the Mercantile Tax?
Sources & Official References
Other rules in Upper Darby
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