Rhode Island lawmakers have introduced a proposed surcharge targeting non-owner-occupied homes valued at over $1 million. While officially titled the Non-Primary Residence Real Property Tax, it has quickly been dubbed the "Taylor Swift Tax" in reference to the pop star’s $17 million Watch Hill mansion. The proposal is part of a broader initiative to fund affordable housing and address the rising concern of vacant, high-end seasonal homes displacing full-time residents.
Taylor Swift's mansion in Westerly Rhode Island would be subject to the proposed tax.
What the Tax Would Do
If enacted, the tax would apply an annual surcharge of $2 per $1,000 of assessed value on second homes that are not the owner's primary residence and are assessed at more than $1 million. This would mean an extra $136,000 per year for Swift's Watch Hill property, according to estimates cited in local news outlets. The surcharge would be in addition to existing local property taxes.
The revenue would be directed toward the state’s affordable housing efforts, helping fund new construction and maintenance of low- and middle-income homes throughout Rhode Island. Lawmakers backing the bill argue that vacation homes in exclusive coastal enclaves are driving up real estate prices and reducing inventory for year-round residents.
Why Now?
The proposed legislation comes amid growing pressure on Rhode Island’s housing market. A wave of remote work, out-of-state investment, and vacation home ownership has accelerated housing scarcity and driven up prices in many areas, especially along the coast. By taxing second homes owned by out-of-staters and investors, officials hope to generate funding for much-needed housing stock while encouraging more consistent property use.
Public Reaction
The bill has sparked heated debate. Supporters view it as a practical measure to counter real estate speculation and ease the housing shortage. Critics, especially those in the luxury real estate sector, argue that it unfairly targets successful individuals and could drive investment elsewhere. Local officials in coastal towns such as Westerly and Narragansett have expressed concern about how this might affect tourism and second-home markets.
Status and Next Steps
As of June 2025, the bill has passed out of committee and is pending further legislative approval. If adopted, the new tax would take effect in July 2026. State officials project it could generate tens of millions of dollars annually for affordable housing funds.
Rhode Island’s proposed "Taylor Swift Tax" highlights a growing trend among coastal communities: finding creative ways to fund housing while curbing absentee ownership. Whether it passes or not, the conversation signals that high-value, non-resident real estate is firmly in the policy spotlight. Celebrities like Swift may become symbols of broader housing battles.