The folk singer read about Natalie Lenhart's predicament in the New York Post and said he was "amazed" that the student had handed over her beloved player.
The 20-year-old had been visiting friends in New York when the incident happened, reports the BBC. Police at the airport told her that she had only two choices, to be taken "downtown" or pay her fare with "something of value".
Taylor said: "They sort of had the policemen make the decision about what was appropriate payment on the spot - it's weird." He added that he wanted to right the wrong and promised to send Lenhart a replacement.