For most people, the engagement of Taylor Swift and Travis Kelce is a love story. But it’s also a case study in how two enormously successful individuals join not just their lives, but their financial empires.
Unless both Swift and Kelce plan for the merger of their respective business empires, there may be an uninvited guest who crashes the wedding ceremony: the taxman. And unlike the typical party crasher who leaves after the ceremony is concluded, the taxman can wreak havoc on their lives for many years to come.
Make no mistake—this isn’t just a marriage. It’s a merger. Swift brings a billion-dollar brand empire built on her music, catalog, and likeness. Kelce brings multimillion-dollar NFL contracts, endorsement deals and a rising media profile.
And when two “companies” merge, you don’t just plan a wedding. You plan for taxes. While the couple is undoubtedly enchanted, here are four strategies they must consider before they settle down forever and always.
Settle on the right address. Domicile is destiny. Swift spends much of her time at her home in Tennessee, which has no state income tax. Kelce’s base, Missouri, does. That difference alone is worth millions annually.
This matters even though both stars will always face “jock taxes” and “tour taxes.” Kelce pays California income tax every time the Kansas City Chiefs play there, and Swift owes New York tax for every Madison Square Garden performance.
But domicile governs the rest—royalties, endorsements, and investment income. Choosing Tennessee would keep many millions in their pockets.
Swift and Kelce shouldn’t overlook another factor when they choose their future domicile: whether that jurisdiction is likely to impose a wealth tax.
Wealth taxes, as the name implies, levy an annual tax on a person’s wealth, both liquid and illiquid. They’re controversial but have been proposed in numerous states. In 2022, Massachusetts voters approved a referendum that added a 4% surtax on income over $1 million. For a couple with billion-dollar fortunes, such taxes should be avoided at all costs.
And while it’s hard to imagine Swift and Kelce—the personification of the American Dream—ever leaving the country, some sports celebrities have done exactly that for tax reasons. Novak Djokovic, the Serbian tennis star, moved to Monaco to reduce his tax exposure. Portugese soccer star Cristiano Ronaldo and other athletes have made similar moves.
But relocation comes with risks: whether a favorable tax treaty exists between the US and the new country is critical, and even then, no jurisdiction’s rules are guaranteed to last forever.
Take the UK, which for decades offered favorable treatment to so-called “non-doms.” That changed in October 2024, when a new government eliminated the long-standing regime, prompting an exodus of wealthy individuals who suddenly found themselves facing much higher tax bills.
Think about family before having one. Their fans are already speculating about children. If they do start a family, tax and estate planning become vitally important. Without it, heirs can be forced into painful sales.
Elvis Presley’s daughter Lisa Marie eventually sold off 85% of Elvis Presley Enterprises to cover debt and taxes. Prince died without a will, and his heirs spent years in court while battling the IRS.
A dynasty trust could prevent Swift and Kelce’s future children from facing the same fate. By keeping assets like her music catalog outside the taxable estate, a dynasty trust preserves wealth across multiple generations while protecting it from creditors and mismanagement.
Kids turn a marriage into a legacy—and the planning should begin now.
Sign a prenup like CEOs, not newlyweds. Swift already knows what it’s like to lose control of her work. Scooter Braun sold her early masters to a private equity fund, forcing her to rerecord her catalog to reclaim ownership. She shouldn’t have to fight over her music again, this time in a divorce court.
A prenup for this couple would go beyond most—it should focus on intellectual property by:
- freezing the value of Swift’s billion-dollar empire at marriage
- keeping royalties, trademarks, and brand deals clearly separate
- protecting Swift’s philanthropic commitments
This should be viewed less like a prenup, and more like a shareholder agreement in a merger. Without it, even the appreciation of her catalog or future endorsement deals could be considered marital property.
Consider also their ages. She is 35 with decades of income-producing years ahead. He is also 35 but turning 36 in October. And even though NFL stars have careers that are measured in years, not decades, Kelce has already shown himself to be a talent in related fields, which could increase his income producing potential in both time and dollars. Tom Brady signed a broadcasting contract worth hundreds of millions of dollars upon his retirement as a player.
Build a charitable empire together. Both Swift and Kelce give back. Kelce runs his “87 & Running” foundation, and Swift regularly donates millions to important causes. As a married couple, they can coordinate philanthropy in a way that both cements their legacy and saves them money.
They should consider a donor-advised fund, which would cut their federal tax bill by millions each year. Another avenue is a private foundation, which would give future heirs a seat at the table in defining how their family shapes the world.
For Swift and Kelce, philanthropy can be both a brand statement and tax strategy.
The Bottom Line
Marriage will change their lives. But it will also change their taxes. From choosing Tennessee as their base to structuring a prenup like a merger agreement, to planning for future children so they don’t face an Elvis or Prince style fire-sale, Taylor Swift and Travis Kelce have every reason to treat this engagement as both a romantic and financial milestone.
Most people don’t juggle Super Bowl bonuses or billion-dollar music catalogues. But the lesson is the same: Thoughtful planning turns marriage from a tax complication into a chance to build a lasting legacy for themselves and their future family.
This article does not necessarily reflect the opinion of Bloomberg Industry Group, Inc., the publisher of Bloomberg Law, Bloomberg Tax, and Bloomberg Government, or its owners.
Author Information
Robert F. Mancuso is a former SEC attorney and CEO of Capri Capital Partners.
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