Hearth tax was imposed by 13 and 14 Car. II, c. 10, which enacted that from March 25th, 1662, “every dwelling and other house, edifice and all lodgings and chambers in Inns of Court, Innes of Chancery, colledges and other societies… shall be chargeable for every firehearth and stove the sum of twoe shillings by the yeare,” to be paid in two half yearly instalments. Machinery for assessment and collection was fully laid down in the Act. The onus of making the original return rested upon the occupier, who was required, upon receipt of notice from the petty constable, to render an account in writing of all hearths within his dwelling. This done, the constable was to enter the house to check the statement and was then to deliver up a return, at the next Quarter Sessions, of all assessed, together with the names of those who refused to comply with the order. Finally, the Clerk of the Peace was to enrol all returns and to prepare a duplicate, which, duly signed and sealed by three or more Justices, was to be sent into the Exchequer. The collection of the tax in the first place was to be made by the petty constable, who was empowered to distrain on the goods of those refusing to pay. From him the money passed to the High Constable, thence to the sheriff, and finally to the Exchequer, small deductions being made at each stage for the reward of persons engaged in assessment and collection. Exemption was granted automatically to those who were in receipt of alms, or who, by reason of poverty, were not liable to the usual taxes to church and poor; also, upon certificate, to persons inhabiting houses of less than 20/- annual value and not possessing lands or chattels worth that sum. Certain types of hearths, such as blowing houses, private ovens, and kilns were also exempt, as were almshouses of less than £100 yearly revenue. The tax was to be chargeable upon the occupier only, and not upon the landlord.

The Act was twice modified, on both occasions with a view of increasing the revenue arising therefrom, and of preventing evasion. The first amendment (15 Car. II, c. 13) provided for a system of checks at each stage of assessment.