In July 2026, following a public hearing and comment period, the New York City Department of Finance (Department of Finance) adopted final rules governing the administration of the new tax, which became effective immediately. Most significantly the final rules clarify that, once a property meets the applicable valuation threshold, the applicable rate is applied to the property’s entire market value as opposed to just the portion of the valuation above that threshold. Accordingly, for example, a qualifying one- to three-family home with a market value of $20 million will be subject to a 1.05 percent rate on the full $20 million market value, resulting in an annual tax of $210,000.