Is New York an estate tax state and what is the exemption?

What the Law Says

New York imposes a separate estate tax on estates of decedents who were residents of New York at death—or on nonresidents who own real or tangible personal property located in New York. The tax applies only to estates exceeding the state’s unified credit exemption amount, which changes annually based on inflation.

The New York estate tax is calculated on the entire federal taxable estate (not just New York-sitused assets for residents), but only if it exceeds the state’s exemption threshold. Unlike the federal system, New York does not allow portability of the exemption between spouses.

New York uses a 'cliff' rule: if the estate exceeds the exemption by even $1, the entire estate—not just the excess—is subject to tax, though graduated rates apply starting at 3.06% and rising to 16% for amounts over $10.1 million (2024).

The exemption amount is adjusted annually for inflation. For deaths occurring between April 1, 2024 and March 31, 2025, the exemption is $6,940,000. Estates valued at or below this amount owe no New York estate tax—provided no special rules (e.g., three-year lookback for gifts) apply.

Statutory Text

For deaths occurring on or after April 1, 2024 and before April 1, 2025, the basic exclusion amount shall be $6,940,000.

— Tax Law § 951 — Exemption amount

Statutory Text

The estate tax imposed by this article shall be equal to the sum of the taxes computed on the value of the taxable estate as shown in the following table… beginning at 3.06% and increasing incrementally to 16%.

— Tax Law § 952 — Tax rates

Statutory Text

The return required by this section shall be filed, and the tax paid, within nine months after the date of death.

— Tax Law § 955 — Filing and payment deadline

Sources