Allen J. Schaben / Los Angeles Times via Getty Images
Rhode Island is reviving its “Taylor Swift Tax”—a bold proposal that would hit luxury second homes with steep new surcharges. The measure targets non-owner-occupied properties worth more than $1 million, charging $2.50 for every $500 of assessed value above that threshold. For homeowners such as Swift, it could mean more than $100,000 in additional property taxes a year.
But this isn’t just about one celebrity. It’s the latest flashpoint in a growing regional backlash against vacant homes, absentee ownership, and the widening gap between housing supply and affordability.
Nowhere is that tension more visible than in Maine, where a staggering 157,467 homes—over 21% of the state’s housing stock—sit vacant, the highest rate in the country. As Maine grapples with a housing shortage, an aging population, and rising property tax burdens, the question is becoming harder to ignore: Could Maine be next?
Why Maine is ripe for a second-home tax debate
Maine has long been a magnet for second-home buyers. A 2019 IPX 1031 study ranked it No. 1 in the country for the share of housing stock classified as second homes. That trend intensified during the COVID-19 pandemic, with luxury buyers and remote workers scooping up coastal and lakefront properties across the state. By 2023, York and Cumberland counties had some of the fastest-growing second-home sales in the nation, according to research from Pacaso.
But the tide might be turning.
From January to March 2025, active listings for Maine homes on Realtor.com® jumped by more than 27%, with new listings tripling month over month in some vacation-heavy towns. Places like Kennebunk, Windham, Naples, and Scarborough are seeing particularly sharp inventory increases, many of them tied to seasonal properties.
Despite this softening, the larger issue remains: While inventory is rising, affordability hasn’t budged. Home prices in York and Cumberland counties remain far above pre-pandemic levels, and many of the newly listed properties remain out of reach for local buyers.
That tension—between elevated supply and limited access—has led some Mainers to question whether vacation homes should continue to be taxed the same as primary residences. For full-time residents who are stuck competing for housing and while paying ever-higher tax bills, the argument is simple: If second homes drive up values and strain local resources, shouldn’t they carry more of the tax load?
(Realtor.com)
What a tax could look like
While Rhode Island’s so-called Taylor Swift Tax might be making headlines, it’s not the only state rethinking how to tax homes that sit empty for much of the year.
The Ocean State’s proposal zeroes in on luxury second homes, those valued above $1 million and not used as a primary residence. The goal is twofold: Discourage absentee ownership and generate new funding for affordable housing.
But Rhode Island isn’t the first to test this idea, and Maine wouldn’t be either. Montana just passed one of the most aggressive tax shifts in the country, and it’s already changing the calculus.
In spring 2025, Montana lawmakers approved a two-bill package that lowers property taxes for full-time residents by increasing the burden on second-home owners and industrial landholders.
Under the new system, owner-occupied homes pay a reduced rate (just 0.76% on the first $325,000 of value), while second homes and short-term rentals are taxed at 1.9% flat. The move was politically risky, logistically complex, and hotly contested.
But it worked. An estimated 230,000 Montanans are now expected to see real savings on their next property tax bill.
Together, these two states offer a policy spectrum: One surgical and symbolic, the other sweeping and systemic. For Maine, either model could hold lessons. The only question is which one lawmakers are ready to learn from.
Could Maine be next?
Maine’s aging population might prove to be the breaking point that brings property tax reform to the state. As home values have soared, so have property tax bills, placing disproportionate pressure on seniors living on fixed incomes.
Lawmakers are now weighing a bold solution: LD 1541, a proposal that would eliminate property taxes entirely for residents over 65 who’ve lived in the state for at least a decade.
Supporters say it’s a necessary lifeline for retirees who are at risk of being taxed out of their homes. But the relief wouldn’t come without a price. Property taxes are the primary source of funding for local governments. If a sizable chunk of the population is removed from the tax rolls, someone else will need to make up the difference.
In Maine, where nearly 1 in 4 residents is over the age of 65, the fiscal impact could be enormous. A similar, more limited program was repealed after just 11 months due to unsustainable costs.
That’s raising concern among younger Mainers who already face high housing costs and stagnant wages. If the state doesn’t fully reimburse localities for lost tax revenue—as LD 1541 currently promises—those under 65 could be left shouldering a heavier financial burden, especially in tourist-heavy towns where property values (and tax assessments) are already climbing.
As debates play out in other states, Maine is facing a version of the same question: Who should pay for local services when housing affordability is strained and the population is deeply divided by age and wealth?
A regional shift in attitude
Across New England, the politics of property taxes are changing. Rhode Island is testing the limits with its revived Taylor Swift Tax, which targets luxury second homes. Vermont is taking a slower but strategic path, reworking how it classifies properties to pave the way for more targeted taxation down the line.
Maine hasn’t followed suit yet. But with vacancy rates at record highs and affordability slipping further out of reach for full-time residents, pressure is building. If proposed senior tax breaks become law, the need to rebalance the tax base might accelerate that shift.
New England’s postcard-perfect homes might soon come with a much higher price tag, especially if no one’s home.