The 'We Are Never Ever Getting Back Together' singer is to accept the trophy on Sunday (September 9) at the Canadian Country Music Association Awards in Saskatoon.
CCMA president Ted Ellis said in a statement that Swift was chosen because she "embodies every aspect of the CCMA Generation Award".
"Since 2010, she has not only become the biggest selling country artist in Canada, she is also one of the top selling artists in the world, across all genres," Ellis noted.
Swift will precede her appearance in Canada by performing at the 2012 MTV Video Music Awards on Thursday (September 6).
Her latest hit 'We Are Never Ever Getting Back Together' recently became her very first number one single on the US chart.
Watch Taylor Swift's 'We Are Never Ever Getting Back Together' music video below: