The “Taylor Swift tax” is coming to Rhode Island.

Tax Policy & Legislation - Rhode Island passed a "Taylor Swift tax," officially the non-owner occupied property tax, targeting luxury second homes [1] - The tax applies to homes worth over $1 million USD not occupied full-time, starting July 2026 [2] - The tax rate is $2.50 USD for every $500 USD of value exceeding $1 million USD [2] - A $2 million USD beach house would owe approximately $5,000 USD extra annually [3] - Exemptions exist for properties rented out for more than 183 days a year [3] - The $1 million USD threshold will adjust for inflation by mid-2027 [3] Market Trends & Potential Impact - Other states like Massachusetts, California, Maine, and Montana are considering similar measures targeting second homeowners [4] - The success of Rhode Island's tax in generating revenue without harming its luxury market could lead to adoption by other states [4]