Philly City Council has approved a $6.8 billion budget for the next year. Here’s what that means for residents, workers, and businesses.

Philadelphia workers will see minuscule tax cuts, small-business owners will get a mixed bag of pain and relief, and city residents experiencing housing insecurity could get a lifeline from the $6.8 billion budget City Council approved Thursday.

After making several relatively minor amendments, Council on Thursday largely approved Mayor Cherelle L. Parker’s taxing and spending proposal for the budget that takes effect July 1, as well as much of her Housing Opportunities Made Easy, or H.O.M.E., initiative.

Lawmakers approved the budget bills in a series of 15-1 votes, a week after giving preliminary approval to the bills in committee.

» READ MORE: Business tax cuts and housing bonds: Mayor Cherelle Parker and Philly Council reach $6.8 billion deal for the next city budget

Councilmember Kendra Brooks, of the progressive Working Families Party, voted against all of the budget and tax measures, saying that the plan did not do enough for the most vulnerable Philadelphians and that she had not been consulted during budget negotiations. (Councilmember Nicolas O’Rourke, who was absent due to a family medical emergency and is also a member of the Working Families Party, has said he also opposed this year’s budget deal.)

Brooks voted for Parker’s housing bills, which passed in a series of 16-0 votes.

The mayor’s proposals this year were unusually forward-looking. From her 13-year schedule for business tax cuts to her housing plan, which includes new programs that could take years to fully implement and will be paid for in part by 20-year bonds, many of the most important parts of the next city budget will not come to fruition until long after the next fiscal year.

Here’s what you need to know about how the new tax and housing legislation will affect Philadelphians — eventually.

Wage tax: The wage tax will be reduced on July 1 from 3.75% to 3.74% for Philadelphia residents and from 3.44% to 3.43% for people who commute into the city for work.

Those are near-negligible savings for many Philadelphians. But the small annual cuts are part of a decades-long policy shared by successive mayors to reduce the city’s reliance on the wage tax.

The Parker proposal approved by Council includes a five-year schedule for wage tax cuts. By 2030, city residents will pay 3.7% and nonresidents will pay 3.39%.

Property tax: Most Philadelphia homeowners will pay the same amount in property taxes next year.

Parker and Council agreed to leave the real estate tax rate flat at 1.3998% of a property’s assessed value.

» READ MORE: Property tax bills would stay the same for most Philly homeowners next year under Mayor Parker’s budget plan

And the administration did not conduct a citywide property reassessment, meaning the vast majority of owners will see their values unchanged this year.

Property tax revenue is split between the city and the school district.

Real estate transfer tax: The city’s real estate transfer tax, which is paid when a property is sold, will increase from 3.278% of the assessed or sales value of a property to 3.578%.

Parker proposed the increase to help pay for her housing plan, and Council agreed.

The state also assesses a 1% transfer tax, bringing the total rate to 4.578% for people buying and selling property in the city.

Philadelphia small-business owners will be hit hard this year by the loss of a popular tax break that allowed tens of thousands of firms doing business in the city to forgo paying the business income and receipts tax, or BIRT.

But the business tax burden will soften over time, due to Parker’s 13-year schedule for cutting the BIRT.

Exclusion eliminated: The tax break that is going away this year was adopted by the city a decade ago. It allowed businesses to exclude their first $100,000 in revenue from taxation under the BIRT. That effectively allowed many of the city’s smallest businesses to forgo paying the complicated tax altogether.

But the city was sued last year by a Massachusetts company that does business in Philadelphia, contending the tax break violated the Pennsylvania Constitution’s uniformity clause, which requires everyone subject to a state or local tax to pay the same rate.

» READ MORE: Why a popular tax break that helped Philadelphia’s small businesses may be going away

Parker’s law department determined the city was unlikely to prevail in court, and the mayor begrudgingly asked Council to eliminate the tax break.

She proposed spending $30 million — roughly the amount of new revenue the city expects to collect due to the end of the tax break — on grants and technical assistance to help businesses navigate the transition. Council agreed and threw in an additional $17 million.

Business owners can get more information on the BIRT changes and sign up for updates on how to get relief from the Philadelphia Revenue Department.

BIRT rate cuts coming: The BIRT consists of two taxes, and the Parker plan that Council passed includes 13 years of scheduled reductions to both.

The tax on net income, or profits, will go from 5.81% to 5.71% next year, before eventually falling to 2.8% in 2039.

The tax on gross revenue, or companies’ total income from business in the city, will be cut from 0.1415% to 0.141% next year. Parker’s plan would then fully eliminate the gross receipts levy in 2039 after a series of annual cuts.

Parker’s $800 million bond initiative that passed Thursday will provide funding for dozens of housing policies in the years to come.

But the money won’t be moving for a while. First, the city must actually issue its first tranche of the bonds: $400 million scheduled to be sold this fall. The earliest the funds will start to flow in the Philadelphia housing initiative is October, but there could be further delays in getting the programs online.

Council added oversight provisions that will essentially force the administration and Council to renegotiate the details and funding for each housing assistance program every year.

Although these numbers are not set in stone, Parker administration officials have outlined how much funding they hope to see allocated to many of the programs in the H.O.M.E. plan. Here are their biggest priorities:

Turn the Key: Parker’s administration hopes to allocate the most funding, $112 million, to Turn the Key, a program that offers very cheap city-owned land to developers so they can build for-sale homes for first-time homebuyers who make less than 100% of area median income (AMI), or $83,600 for a one-person household and $119,000 for a family of four.

The program also includes secondary mortgages paid for by the city that lower the up-front costs for homeownership, and provide buyers with a deferred schedule on some payments until they sell the home. While city workers are given preference for accessing the program, anyone within the income limits can apply.

Basic Systems Repair Program: The administration wants to spend $84 million bolstering this popular and long-standing city policy that gives lower-income homeowners grants for house repairs.

Although the program pays for fixes to 2,500 homes a year, there is still a substantial waiting list. But the administration wants the income limit for the program to be increased to 100% of AMI as well. That means far more people will be eligible for the money, and the wait list may expand apace.

One Philly Mortgage and Philly First Home: Two other home ownership programs are also at the top of the administration’s priority list. Parker wants to put $50.7 million toward One Philly Mortgage, which would go to first-time homeowners who might not qualify for conventional mortgages. The program will provide 30-year fixed rate loans to households up to 120% of AMI, or $100,000 for a household of one or over $143,000 for a household of four.

Meanwhile, $50 million would expand the Philly First Home program, another first-time homeowner-assistance program that covers down payment and loan closing costs for mortgages up to $250,000. Eligible homebuyers can receive up to $10,000 or 6% of the purchase price, whichever is lower.

Staff writer Fallon Roth contributed to this article.