Rhode Island’s New Budget Proposal Could Cost Taylor Swift Thousands

Rhode Island lawmakers unveiled their new 2025-2026 state budget this past Tuesday and there are several tax increases planned for the new fiscal year.

One tax increase in particular could affect the state's high-end part-time homeowners, including celebrities like Jay Leno, Christopher Walken and Taylor Swift.

That new tax has actually been dubbed the "Taylor Swift Tax" and though it doesn't affect Swift's fans, it could end up costing the singer thousands of dollars each year.

Get our free mobile app

What Is The "Taylor Swift Tax" in Rhode Island?

Rhode Island is contending with potential budget deficit of anywhere between $200 million and $400 million this year. To come up with more cash for next year, lawmakers added lots of little tax increases to their new budget.

One of these increases is specifically for "non-owner-occupied homes valued over $1 million." That means all those fancy second homes throughout the Ocean State are going to cost their owners a considerable amount more each year.

In fact for Swift alone, the tax increase comes out to about $136,000 more per year on her 11,000 square-foot waterfront home valued at $20.4 million.

READ MORE: How Much Things Cost to Taylor Swift Makes Will Blow Your Mind

Considering she bought the house for cash back in 2013 and she just dropped $360 million on buying back the masters of her first six albums, we think she's going to be just fine with the new taxes.

Other celebrities living in Rhode Island won't be affected by the new "Taylor Swift Tax" at all.

Comedian Matt Rife became a full-time Rhode Island resident when he purchased his North Smithfield compound last summer and actor Steve Schirripa made his love of Westerly permanent recently as well.

READ MORE: Did You Know These Famous Faces Call Rhode Island Home?

Supporters of this new tax increase on non-owner-occupied high-end homes say they hope to incentivize the property owners to "make more productive use" out of their luxury homes to offset the tax hike and in turn boost the local economy.

The House Finance Committee approved the budget 11-3 last Tuesday. The full Rhode Island House of Representatives will debate and vote on the bill this coming Tuesday and if it passes, the Senate will vote next and then Governor McKee must approve it as well.