Philadelphia Mayor Parker proposes $1 rideshare tax to fund public schools, prevent staff cuts

PHILADELPHIA - Mayor Cherelle Parker announced Monday a plan to increase Philadelphia’s rideshare tax to $1 per trip, aiming to protect public school progress and prevent deep staffing cuts as the district faces a major funding shortfall.

Mayor Parker’s plan to stabilize school funding

The proposed amendment would raise the rideshare tax from 20 cents to $1 per trip, with the increase applying to rideshare companies, not individual drivers.

If approved, the new "Transportation Network Company Tax" would take effect Jan. 1, 2027, and is expected to bring in $24 million in the first year and $48 million annually after that.

What they're saying:

"We have made real progress in our schools, and I am not going to allow us to lose ground. This is about protecting that progress and making sure every child in Philadelphia has a real shot," said Mayor Parker.

The School District of Philadelphia is facing a $300 million deficit after the expiration of federal COVID relief funds. 

Without new revenue, the district planned to eliminate about 340 school-based staff, including teachers and counselors. 

The new funding could restore around 240 positions, including 130 teachers.

Parker also emphasized that the tax would be placed on companies, not drivers.

"I want to be very clear… we are not proposing a tax on rideshare drivers," she said. "Those companies can make a decision about whether or not they pass this cost onto those hardworking folks… or they can decide to pay the tax."

How the plan impacts schools and the city

Why you should care:

The proposal is designed to stabilize school operations, reduce disruption and preserve supports that contribute to safer, stronger learning environments. 

A portion of the revenue would also fund free SEPTA passes for eligible school employees and help residents resolve license suspensions due to unpaid parking tickets.

The other side:

Uber and Lyft sent the following separate statements on the matter: 

Statement from Uber spokesperson:

"The 5x hike of the Mayor’s proposed rideshare tax will hurt drivers and hit everyday Philadelphians, making rides less affordable and threatening critical access to jobs, healthcare, and essential services. This double tax worsens Philadelphia’s affordability and transportation crisis, even though rideshare already provides millions to city schools annually through existing taxes."

Statement from Lyft:

"Philadelphia is already facing mounting cost-of-living and mobility challenges, and this proposal would intensify both by increasing the price of everyday rides that many working residents rely on to get where they need to go."

The backstory:

The rideshare tax proposal comes after measurable gains under the district’s Accelerate Philly plan, including higher attendance, improved test scores, and rising graduation rates. 

"Since launching Accelerate Philly, we have made real progress in our schools, from higher attendance to improved outcomes for students," said Dr. Tony B. Watlington, Sr., Superintendent.

The plan also includes a three-year pilot program with the Philadelphia Parking Authority to help residents clear unpaid parking tickets and restore driving privileges, potentially generating more revenue for schools.

The long-term impact on school facilities and additional state funding efforts remains uncertain.

What's next:

Along with the proposed tax, the School District is also planning to cut approximately $225 million in operating costs as part of a broader effort to close the deficit by the 2029-2030 school year.

City Council must approve the proposal as part of the Fiscal Year 2027 budget by the end of June.

For now, the debate highlights a difficult balancing act — finding new revenue to support schools while avoiding added costs for residents already facing rising expenses.

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