Hat tax
Encyclopedia
The hat tax was a tax
levied by the British Government
from 1784 to 1811 on men's hat
s. The tax was introduced during the first ministry of Pitt the Younger
and was designed to be a simple way of raising revenue for the government in a rough accordance with each person's relative wealth. It was supposed that the rich would have a large number of expensive hats, whereas the poor might have one cheap hat or none at all.
The hat tax required hat retailers to buy a licence and to display the sign Dealer in Hats by Retail. The cost of the retail licence was two pounds
for London
and five shilling
s elsewhere. Each man's hat was required to have a revenue stamp
pasted inside on its lining. The cost of the duty depended on the cost of the hat. For hats costing under four shilling, a duty of threepence
was paid. For hats costing between four and seven shillings, sixpence was levied, and a shilling for those between seven and twelve shillings. For expensive hats over twelve shillings, the duty was two shillings. Heavy fines were given to anyone, milliner or hat wearer, who failed to pay the hat tax. However, the death penalty was reserved for forgers of hat-tax revenue stamps.
The hat tax was not the only duty raised by the government on household items. The best known such tax was the window tax
, which was implemented in 1697, and was not repealed until 1851. Other similar taxes were the dice duty (1711–1862), almanac tax (1711–1834), wallpaper tax
(1712–1836), brick tax
(1784–1850), glove tax (1785–94), hair-powder tax (1786–1869) and perfume tax (1786–1800).
Although, these twenty-seven years saw rapid inflation, a shilling of that period had the purchasing power of about £3.40 today.
Tax
To tax is to impose a financial charge or other levy upon a taxpayer by a state or the functional equivalent of a state such that failure to pay is punishable by law. Taxes are also imposed by many subnational entities...
levied by the British Government
Politics of the United Kingdom
The politics of the United Kingdom takes place within the framework of a constitutional monarchy, in which the Monarch is the head of state and the Prime Minister of the United Kingdom is the head of government...
from 1784 to 1811 on men's hat
Hat
A hat is a head covering. It can be worn for protection against the elements, for ceremonial or religious reasons, for safety, or as a fashion accessory. In the past, hats were an indicator of social status...
s. The tax was introduced during the first ministry of Pitt the Younger
William Pitt the Younger
William Pitt the Younger was a British politician of the late 18th and early 19th centuries. He became the youngest Prime Minister in 1783 at the age of 24 . He left office in 1801, but was Prime Minister again from 1804 until his death in 1806...
and was designed to be a simple way of raising revenue for the government in a rough accordance with each person's relative wealth. It was supposed that the rich would have a large number of expensive hats, whereas the poor might have one cheap hat or none at all.
The hat tax required hat retailers to buy a licence and to display the sign Dealer in Hats by Retail. The cost of the retail licence was two pounds
Pound sterling
The pound sterling , commonly called the pound, is the official currency of the United Kingdom, its Crown Dependencies and the British Overseas Territories of South Georgia and the South Sandwich Islands, British Antarctic Territory and Tristan da Cunha. It is subdivided into 100 pence...
for London
London
London is the capital city of :England and the :United Kingdom, the largest metropolitan area in the United Kingdom, and the largest urban zone in the European Union by most measures. Located on the River Thames, London has been a major settlement for two millennia, its history going back to its...
and five shilling
Shilling
The shilling is a unit of currency used in some current and former British Commonwealth countries. The word shilling comes from scilling, an accounting term that dates back to Anglo-Saxon times where it was deemed to be the value of a cow in Kent or a sheep elsewhere. The word is thought to derive...
s elsewhere. Each man's hat was required to have a revenue stamp
Revenue stamp
A revenue stamp, tax stamp or fiscal stamp is a adhesive label used to collect taxes or fees on documents, tobacco, alcoholic drinks, drugs and medicines, playing cards, hunting licenses, firearm registration, and many other things...
pasted inside on its lining. The cost of the duty depended on the cost of the hat. For hats costing under four shilling, a duty of threepence
British One Penny coin (pre-decimal)
The English Penny, originally a coin of 1.3 to 1.5 g pure silver, includes the penny introduced around the year 785 by King Offa of Mercia. However, his coins were similar in size and weight to the continental deniers of the period, and to the Anglo-Saxon sceats which had gone before it, which were...
was paid. For hats costing between four and seven shillings, sixpence was levied, and a shilling for those between seven and twelve shillings. For expensive hats over twelve shillings, the duty was two shillings. Heavy fines were given to anyone, milliner or hat wearer, who failed to pay the hat tax. However, the death penalty was reserved for forgers of hat-tax revenue stamps.
The hat tax was not the only duty raised by the government on household items. The best known such tax was the window tax
Window tax
The window tax was a significant social, cultural, and architectural force in England, France and Scotland during the 18th and 19th centuries. Some houses from the period can be seen to have bricked-up window-spaces , as a result of the tax.-Details:The tax was introduced in England and Wales under...
, which was implemented in 1697, and was not repealed until 1851. Other similar taxes were the dice duty (1711–1862), almanac tax (1711–1834), wallpaper tax
Wallpaper tax
The wallpaper tax was introduced in Great Britain in 1712, during the reign of Queen Anne. Patterned, printed, or painted wallpaper was initially taxed at 1d per square yard, rising to 1s , by 1809. The tax was bypassed by purchasing untaxed plain paper and having it hand stenciled. The tax was...
(1712–1836), brick tax
Brick tax
The brick tax was introduced in Great Britain in 1784, during the reign of King George III, to help pay for the wars in the American Colonies. Bricks were initially taxed at 4s per thousand. To mitigate the effect of the tax, manufacturers began to increase the size of their bricks, up to a maximum...
(1784–1850), glove tax (1785–94), hair-powder tax (1786–1869) and perfume tax (1786–1800).
Although, these twenty-seven years saw rapid inflation, a shilling of that period had the purchasing power of about £3.40 today.