Reading Business Privilege License and Tax: The $55 License and 2026 Mill Rates

If you are opening or running a business in Reading, Pennsylvania, the first local bills you see are usually the Business Privilege License, the Business Privilege Tax (BPT), and a set of employer and employee taxes. The paperwork can look like one bill, but it is several separate obligations with different rates, collectors, and deadlines. This guide explains how to read each item, what to gather before you start, and where businesses most often go wrong.

Pennsylvania does not issue a general business license that every business must hold, and it does not issue county business licenses. The local obligations in Reading come from the city and its collectors. State filings, such as sales tax registration, are handled separately through myPATH.

Informational only. This article is not legal, tax, or accounting advice. Rates and deadlines reflect figures as of October 2026. Confirm every number with the named agency before you pay or file, and talk with a qualified CPA or attorney about your specific situation.

What You Need Before You Start

• The business address in Reading, including any suite or unit number
• Gross receipts for the year, sorted by activity: service, commission, rental, retail, and wholesale
• A list of employees and where they work, since the earned income tax and local services tax depend on where people live and work
• The exact legal name on your Pennsylvania filing, plus any fictitious name you use
• Your myPATH login, if you already have a state tax account
• Payment for the $55 Business Privilege License

Step-by-Step: Reading Your Local Business Items

Step 1: Confirm which local items apply to your address

Start with the location and the activity, not the business type on your formation paperwork. Whether a local item applies depends on where you operate and what you do there. A home office, a leased storefront, and a work truck parked at a job site can each create different obligations. Confirm the jurisdiction with the City of Reading before you assume any bill is correct.

Step 2: Check Reading zoning before you pay anything

Reading zoning is a separate question from the license. Buying a business license does not confirm that your use is allowed at a particular property. Ask the City of Reading zoning office whether your planned use is permitted at the address before you sign a lease or buy a property. A zoning problem found after you open is much harder to fix than a question asked up front.

Step 3: Get the $55 Business Privilege License

The Business Privilege License costs $55. Obtain it at the City of Reading Citizens' Service Center, 815 Washington St. Bring the business information from the checklist above. Keep the license with your business records. The $55 is the license fee only. It is separate from the Business Privilege Tax, which is calculated on your receipts.

Step 4: Find your 2026 BPT rate category

The 2026 Business Privilege Tax uses three rates, stated in mills. One mill is one-tenth of one percent, or $1 for every $1,000 of the taxable base.

Activity	2026 BPT rate
Service, commission, and rental	2.25 mills
Retail	1.5 mills
Wholesale	1.0 mill

Most businesses have more than one activity. A shop that sells products and also provides installation may need to split its receipts by category. Ask the city which category governs mixed activities before you file, and do not guess.

Here is an illustration only. If the taxable base for a service category were $100,000, 2.25 mills would come to $225 before any exclusions or adjustments. The base the city uses for your business is the number that matters, so confirm it with Keystone Collections Group before you rely on any calculation.

Step 5: Understand how the BPT is split

The Business Privilege Tax is divided between the City of Reading and the Reading School District. You do not need to calculate the split yourself, but you should know that both taxing bodies receive part of the same rate. Read the rate in the table above as the combined 2026 figure.

Step 6: Know which office collects what

"Reading tax office" does not refer to one counter. Keystone Collections Group collects the Business Privilege Tax, the Local Services Tax (LST), and the per capita tax. The Berks Earned Income Tax Bureau, which serves as the Berks Tax Collection District, collects the earned income tax (EIT). Send each payment and each question to the correct collector, and keep a record of which office you paid and when.

Step 7: Review the employee-related taxes

If you have employees, you will likely deal with these items:

• Earned income tax: 3.6% for Reading residents (2.1% city and 1.5% school district), and 1% for nonresidents. Collected by the Berks Earned Income Tax Bureau.
• Local Services Tax: $52, collected by Keystone Collections Group.
• Per capita tax: $30, collected by Keystone Collections Group.

Ask Keystone Collections Group how the LST and per capita tax apply to your staff, including part-time and out-of-town workers, before you set up payroll.

Step 8: Check whether the 5% amusement tax applies

Reading levies a 5% amusement tax. Whether it reaches your business depends on what you offer the public. Confirm coverage with the city before you start charging admission or entertainment fees, not after the first event.

Step 9: Look up food licensing if you prepare or sell food

Berks County has no county health department. Food licensing therefore generally falls to the Pennsylvania Department of Agriculture (PDA), unless a local program covers your address. Use PDA's Food Safety Jurisdiction Search on the PDA website to confirm who licenses your specific address before you apply. Do not assume PDA covers you without checking.

Step 10: Register state tax accounts on myPATH

The PA-100 was retired in 2022, so older guides that tell you to file one are out of date. Register state tax accounts, including a sales tax account, through myPATH. The Pennsylvania state sales tax rate is 6%. Start at the Department of Revenue page at https://www.pa.gov/services/revenue/register-my-business-for-taxes. Registering with the state does not replace any of the Reading items above.

Step 11: Use a registered office, not a registered agent

Pennsylvania does not use registered agents. Your filing must list a registered office with a street address and number in Pennsylvania. A post office box alone is not accepted. If your business has no Pennsylvania address, you may contract with a Commercial Registered Office Provider (CROP) and list the CROP name and the county of venue instead. Listing a CROP without a contract can carry civil and criminal penalties, and a CROP cannot be used where a principal place of business is required. Filings are made through Business Filing Services at https://file.dos.pa.gov/, and general information is at https://www.pa.gov/agencies/dos/programs/business.

Step 12: Put the BPT dates on your calendar

Date	What it means
April 15	Discount date for the BPT
June 15	Face amount due
July 16	Penalty applies from this date

Confirm the dates for the current tax year with Keystone Collections Group before you set reminders.

Common Mistakes to Avoid

• Treating the $55 as the whole cost. The license fee and the BPT are separate. Budget for both.
• Looking for a state or county business license. Pennsylvania has no state general business license and no county business licenses. Your local obligations come from Reading.
• Skipping the zoning check. A license does not confirm that your use is permitted at the address.
• Paying every bill to one office. Keystone Collections Group and the Berks Earned Income Tax Bureau collect different taxes.
• Missing the penalty date. Penalties begin July 16, so set reminders well before that date.
• Using a post office box as the registered office. Pennsylvania requires a street address and number, or a CROP arrangement.
• Following a retired form. The PA-100 no longer applies, and registration is on myPATH.
• Looking for an LLC publication requirement. Pennsylvania LLCs have no publication requirement, so do not pay for a newspaper notice on that basis.

Expected Results

Working through these steps can help you build a clear list of the local items that may apply to your business, a rough estimate of the BPT at the 2026 rates, and a map of which office receives each payment. It may also reduce the chance of a late penalty and of paying the wrong collector. These steps will not confirm that your use is permitted by zoning, and they will not settle your tax liability. Those answers depend on facts and rules specific to your business, so verify them with the named agencies.

Next Steps

Before you file, confirm your rates, base, and dates with the City of Reading and Keystone Collections Group, and confirm food and zoning questions with PDA and the city. If your business has several activities, employees across municipal lines, or a food or entertainment component, consult a qualified CPA or attorney. For help with the general business setup, the Pennsylvania Small Business Development Centers at https://www.pasbdc.org/ offer free advising.