RI's 'Taylor Swift Tax' Funds Affordable Housing

Rhode Island enacted a new Non-Owner Occupied Property Tax on Wednesday, July 5, 2026. This levy applies to residential properties assessed at over $1 million that are not occupied by the owner or a tenant for a minimum of 183 days annually. The tax is calculated at $2.50 for every $500 of assessed value exceeding the initial $1 million, in addition to existing local taxes.

Revenue from this tax is designated for Rhode Island's Low-Income Housing Tax Credit Fund, aiming to support the development of affordable housing across the state. As of May 2026, the state identified 22,431 residential properties valued above $1 million. Of these, an estimated 8,245 properties are classified as non-owner-occupied and potentially subject to the new tax.

Homeowners might be eligible for exemptions if the property is rented long-term for over 183 days or operates as a registered short-term rental booked for more than half the year, provided state lodging taxes are paid. The state Division of Taxation projected the tax would generate approximately $24.5 million in its first year. Payments are due quarterly starting September 15, 2026, or as a lump sum by that date.