The 21-year-old multiplatinum singer-songwriter is the youngest to receive the award, which has gone to Beyonce, Reba McEntire and Fergie. The announcement was made Tuesday. She will be honored at the 2011 Billboard Women in Music event in New York on Dec. 2.
Her latest album, "Speak Now," has sold over 3.6 million copies since its release last fall, and she's sold the most albums of any artist over the past year.
It's the latest honor for Swift, who became the youngest person to win the Grammy for best album for "Fearless" in 2010. She has also won several ACM, CMA and AMA awards.
Swift is currently on a national tour.