Taylor Swift Tax Targets Rich, Could Cost $136K Yearly
Understanding Rhode Island's New Luxury Home Surcharge Rhode Island's new luxury home surcharge, dubbed the Taylor Swift Tax, is set to take effect in July 2026. It stands as one of the most assertive tax strategies aimed at high-value second homes in the U.S. The surcharge comes with a rate of $2.50 per $500 of assessed value above $1 million. This specifically affects properties that are not used as primary residences. To avoid this tax, property owners must meet a key residency requirement. They need to occupy their homes for at least 183 days each year. This rule clearly distinguishes primary residences from vacation homes. The legislation, approved by the Rhode Island House of Representatives in June 2025, outlines precise criteria for impacted properties. High-value estates, like Taylor Swift's property in Watch Hill, could face annual surcharges up to $136,000. For instance, a $3 million second home would incur roughly $10,000 in extra annual taxes. Meanwhile, a $2....