The country singer, who is the youngest female to ever be awarded the honour, will follow in the footsteps of stars including Fergie and Beyoncé when she accepts the title in December.
Speaking to Robin Roberts on GMA this morning, she said: "It's such an exciting, amazing honour.
"It's one of those jump-up-and-down moments where you are like, 'Of the whole year?!' I'm so thankful. I get so excited about stuff like that. It's continued to stay exciting, all of this... Everything feels new all the time even though it's been happening since I was 14."
Swift, who is currently on a world tour in support of album Speak Now, was on the show to promote her new fragrance Wonderstruck, named after the lyrics in her track 'Enchanted'.
"I always loved that line and you don't hear the phrase 'wonderstruck' very often," she explained. "I felt like if I ever had the chance to make a fragrance, which I've dreamed about doing since I was about 14 years old, ever since I wrote that song I thought that would be the title.
"I wanted to create a fragrance that smelled the way that word feels."
Swift was recently nominated for three American Music Awards and six American Country Awards.
Watch more of Taylor Swift on GMA below: