Regarding the taxman, it turns out that George Harrison was correct, all those years ago. And no, they aren’t imposing a levy directly on the billionaire songstress, just on her little-used, oceanfront vacation home in Rhode Island.
From CNBC,
Rhode Island’s ‘Taylor Swift Tax’ on vacation homes of the wealthy is spreading to other states.
Those students of history will recall that Newport, RI, exists as a place in the world because out-of-state robber barons built their summer homes there. That was then, this is now.
CNBC explains how it works,
Swift’s house, for instance, is assessed at around $28 million, according to local real estate records. Her current property taxes are estimated at around $201,000 a year. The new charges will add another $136,442 to her annual taxes, bringing her yearly total to $337,442 – even though locals say she rarely visits.
Explaining the why of the tax (other than, “they can”) is considerably more difficult. I’m old enough to remember when former U.S. Sen. John Kerry (D-MA) would park his yacht in Rhode Island as a tax dodge.
Travis Kelce’s fiancé reportedly owns eight homes across America. As for her Rhode Island spread, the New York Post’s Page Six reports,
Swift acquired a gorgeous waterfront mansion in Westerly, Rhode Island’s ritzy Watch Hill neighborhood for $17.75 million in 2013.
The 11,000-square-foot estate — nicknamed High Watch or Holiday House — has eight bedrooms, 10 bathrooms and eight fireplaces.
It can get cold in Rhode Island.
The 5.23-acre property, complete with a patio and massive swimming pool overlooking the ocean, boasts 700 feet of private beachfront.
In January 2025, reports surfaced that Swift obtained building permits for an expansion project estimated to be worth $1.7 million.
I think we can safely dismiss the possibility of any expansion, at his point.
Swift claims her Nashville, TN-area mansion as her residence for tax purposes, as Tennessee does not impose an income tax on individuals. But Swift herself pays plenty of taxes, of all kinds, and generates much government revenue wherever she goes.
She also owns homes (plural) in New York City and Beverly Hills, CA. Kelce, a K.C. Chiefs tight end, owns a $6 million mansion in upscale Leawood, KS.
Back to the new tax in Rhode Island. CNBC reports,
Real estate brokers say the increase targets the very taxpayers who already contribute the most. Wealthy second-homeowners pay hefty property taxes but don’t use many local services…
…Their kids typically don’t attend the local schools, and they’re infrequent users of the police, fire, water and other municipal services since most stay for only 10 to 12 weeks out of the year.
On the other hand, they have money.
The tax hikes are being driven by tighter state budgets and populist anger over housing costs. States are looking to offset budget cuts expected from the new tax and spending bill in Washington.
As always, it’s Trump’s fault. Whenever I analyze government budgets–at the federal, state, regional, county, or municipal level–I’ve have yet to encounter the problem of too little revenue.
The problem is always on the spending side. As for housing costs, it’s hard to see how raising taxes will lower costs. Is the idea that Swift, in order to pay the extra tax, will subdivide her mansion into 10 low-income apartments?
More likely, she’ll sell the place to someone local and buy another oceanfront mansion in a more tax-friendly climate. CNBC suggests next-door Connecticut.
But if she’s going to sell, she needs to hurry,
Rhode Island is also hiking its conveyance tax on luxury real estate starting in October. The tax on real estate sales will be an additional $3.75 for each $500 paid above $800,000 for a real estate purchase.
As George sang,
If you drive a car, I’ll tax the street
If you try to sit, I’ll tax your seat
If you get too cold, I’ll tax the heat
If you take a walk, I’ll tax your feet
