The New York estate tax cliff
Short answer: New York taxes estates above its basic exclusion amount, $7,350,000 for deaths in 2026, and the exclusion disappears entirely once the taxable estate exceeds 105% of that figure ($7,717,500). An estate just over the line can owe tax on every dollar, not just the excess.
How the cliff works
- Figures come from the New York Department of Taxation and Finance and change each January.
- Taxable gifts made within three years of death are added back for New York purposes, with limited exceptions.
- New York does not allow a surviving spouse to inherit the first spouse's unused exclusion (no portability), so married couples near the threshold often use a credit-shelter or disclaimer trust.
- Nonresidents who own New York real property or tangible property may owe New York estate tax on that property.
- Planning levers include lifetime gifts made more than three years before death, charitable bequests sized to stay under the cliff, and trust structures for married couples. The return is Form ET-706, due nine months after death.
Next step
If your estate, or a parent's, is within reach of the New York exclusion, email the firm through the Contact page; a short review now is far cheaper than a return later.
This page is general information, not legal advice, and does not create an attorney-client relationship. Simani Law, PA is licensed in Florida and New York. Figures are as of October 2026 and change annually.