June 02, 2026
CHRIS LACHALL/USA TODAY Network via Reuters Connect
Airbnb is launching an ad campaign opposing Mayor Cherelle Parker's proposed tax hike on short-term rentals in Philadelphia. Above, Parker speaks at an event last year.
Airbnb has launched an ad campaign against Mayor Cherelle Parker's proposed tax increase on short-term rentals, calling it a "sweetheart deal" for hotels.
Parker has proposed increasing the tax rate on short-term rentals like Airbnb and Vrbo from 15.5% to 21.5% while only boosting the hotel tax rate from 15.5% to 16.1%. Airbnb has cast this proposal as a detriment to property owners, claiming they will lose reliable income. The company also has funded an open letter from hundreds of hosts asking City Council to reject the proposal.
MORE: Shops at Liberty Place damaged after driver crashes into building
"There is nothing balanced about this," the letter says. "Someone lobbied hard to make sure they got off easy and it worked."
Ads from Airbnb's campaign, which totals five figures, will begin appearing in print and digital publications this week, a company spokesperson said Tuesday.
Parker's office declined to comment.
Guests at hotels and short-term property rentals in Philadelphia currently must pay an 8.5% city tax and 7% state tax, totaling 15.5%, on the price of their stays. Parker initially proposed raising the city tax rate by 2% for hotels and Airbnbs.
Last week, the Parker administration said it had reached an agreement with tourism and hotel groups to instead increase the hotel tax rate by 0.6% and tax short-term rentals by an additional 6%. The administration said this would raise $75 million over five years for the city's homeless services.
But several tourism groups, including Visit Philadelphia, quickly pushed back on the plan.
The tax proposal is part of the budget package City Council is considering. For the budget to be in place July 1, as required by law, Council must preliminarily approve a spending plan by Thursday.
Last week, Airbnb called the tax proposal a "last-minute gift to big, corporate hotels," saying it would hurt Philadelphia in several ways, but that hosts would feel the biggest impact.
"By not taxing hotels at the same rate as short-term rentals under this proposal, the City of Philadelphia is missing out on critical tax revenue that could further help address homelessness," the company said. "Philadelphia Airbnb hosts aren't institutional investors. They are everyday homeowners that use hosting as a way to make ends meet."
Philadelphia's limited lodging regulations require lessors to live in the residences they're renting out for at least half of the year. Otherwise, under the city's visitor accommodations laws, property owners must register as a business to rent out their properties, and these rental properties must be meet zoning regulations.
An Airbnb spokesperson said 58% of Airbnb hosts in Philly use their short-term rental income to "make ends meet."
More than 250 hosts signed a letter published in the Inquirer this week, urging council members to reject the proposal and warning of potential "ripple effects" to other small businesses.
"We are appalled, we are scared and we are asking you to see this proposal for what it actually is: not a housing policy, not a homelessness solution, but a gift to the hotel industry paid for by ordinary Philadelphians trying to make ends meet," the letter says. "... We are not asking to pay nothing. We already pay taxes. We already register and follow the rules. We just do not want to be singled out to protect someone else's bottom line."
On Tuesday, members of the Pennsylvania Short Term Rental Alliance published a similar letter that calls for City Council to reject the proposal on grounds that it shows "preferential treatment" to the hotel industry.
"This disproportionate tax increase simply makes it harder for local people to participate in the local visitor economy while giving the hotel industry a competitive advantage," the letter says. "... In what world does that make sense?"
With its ad campaign, Airbnb is following the path taken by Uber, which has campaigned against Parker's proposal to enact a $1 tax on all rideshare services in the city. Parker has said the tax would would raised $48 million annually for the School District of Philadelphia, which is attempting to close a budget deficit.
Since Parker proposed the rideshare fee in March, Uber has launched an ad campaign totaling more than six figures, and urged riders to speak out against the tax.
Disclosure: Uber is an active PhillyVoice advertiser. This story was produced independently by the PhillyVoice editorial team.
