The tax horsepower or taxable horsepower was an early system by which taxation rates for automobiles were reckoned in some European countries such as Britain, Belgium, Germany, France and Italy; some US states like Illinois charged license plate purchase and renewal fees for passenger automobiles based on taxable horsepower. The tax horsepower rating was computed not from actual engine power but by a mathematical formula based on cylinder dimensions. At the beginning of the twentieth century, tax power was reasonably close to real power; as the internal combustion engine developed, real power became larger than nominal taxable power by a factor of ten or more.
1912 Wolseley 16-20 see also 1913 Vauxhall 30-98 and many others
Horsepower (hp) is a unit of measurement of power, or the rate at which work is done, usually in reference to the output of engines or motors. There are many different standards and types of horsepower. Two common definitions used today are the imperial horsepower, which is about 745.7 watts, and the metric horsepower, which is approximately 735.5 watts.
A team of six horses mowing hay in East Lampeter Township, Pennsylvania, U.S.