For homeowners, there is a property tax. But if you are in Rhode Island, there is the “Taylor Swift tax”. Officials in Rhode Island have unveiled new budget proposals, one of which is a surcharge targeting luxury second or seasonal homes. Officials have informally dubbed this the “Taylor Swift tax.”
The proposed tax would apply to non-primary residences valued at over $1 million that sit vacant for more than half the year. Under the plan, homeowners would pay an annual fee of $2.50 for every $500 in value above the $1 million threshold. For example, a $2.5 million home left unoccupied for most of the year could face an additional $7,500 in taxes annually.
If enacted, Taylor Swift could be among those affected. Her Watch Hill mansion – a three-story, seven-bedroom, nine-bath estate purchased in 2013 for $17.75 million – could face an extra tax bill of around $136,000 per year.
The historic home, known as the Westerly Mansion, inspired her song “The Last Great American Dynasty” from the 2020 Folklore album and has hosted several high-profile gatherings, including her famous Fourth of July parties.
Taylor Swift’s Rhode Island home was in focus last month when human remains were discovered down the road from the house. This fueled fears that a serial killer was on the loose.
Another Proposal Affecting Rhode Island Homeowners
Another controversial item in the budget package includes a proposed 63% hike in the real estate conveyance tax – the fee sellers pay at closing. The rate would increase from $2.30 to $3.75 per $500 of a property’s value. For a home priced at the Rhode Island average of approximately $492,939 (according to Zillow), that would mean an increase from roughly $2,200 to $3,700 in taxes.
The Rhode Island Association of Realtors has criticized the proposal, warning it could harm the state’s already strained housing market.
Critics argue that both measures could make buying and selling homes in the state even more expensive, especially at a time when affordability is already a concern.
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