New York is one of the few states whose estate tax has a cliff. An estate at or under the basic exclusion pays nothing, but an estate more than 5% over it loses the credit and is taxed on the whole amount.
This guide gives the 2026 basic exclusion, who must file and when, the full rate table, an explanation of the cliff and a worked example from the state's own instructions. It follows the New York Department of Taxation and Finance and Form ET-706.
The New York Department of Taxation and Finance (DTF) says the basic exclusion amount for dates of death from January 1, 2026 through December 31, 2026 is $7,350,000. The amount changes each year.
| Date of death | Basic exclusion amount |
|---|---|
| 2026 | $7,350,000 |
| 2025 | $7,160,000 |
| 2024 | $6,940,000 |
| 2023 | $6,580,000 |
| 2022 | $6,110,000 |
| 2021 | $5,930,000 |
| 2020 | $5,850,000 |
| 2019 | $5,740,000 |
New York's exclusion is much lower than the federal basic exclusion amount, which is $15,000,000 for calendar year 2026 under Revenue Procedure 2025-32, so an estate can owe New York tax without owing federal tax. See our federal estate tax exemption guide for the federal figure.
The estate of a New York resident must file a New York estate tax return if the federal gross estate plus any includible gifts exceeds the basic exclusion amount. The estate of a nonresident must file if it includes real or tangible property located in New York and the federal gross estate plus includible gifts exceeds the basic exclusion amount. Includible gifts are taxable gifts made during the three-year period that ends on the date of death and not already in the federal gross estate, with some exceptions.
The estate must pay the tax and file Form ET-706 and a federal Form 706 within nine months of death, even if the estate is not required to file a federal estate tax return. An extension of time to file or pay can generally not exceed six months, but in cases of undue hardship the DTF may grant an extension of up to four years. Interest is due on late payments, including those made under an extension.
The DTF says New York's estate tax is calculated using the tax table on Form ET-706. This is the table printed on the form (9/25 edition) for the New York taxable estate.
| Taxable estate over | But not over | Tax at the start of the bracket | Rate |
|---|---|---|---|
| $0 | $500,000 | $0 | 3.06% of the taxable estate |
| $500,000 | $1,000,000 | $15,300 | 5% of the excess over $500,000 |
| $1,000,000 | $1,500,000 | $40,300 | 5.5% of the excess over $1,000,000 |
| $1,500,000 | $2,100,000 | $67,800 | 6.5% of the excess over $1,500,000 |
| $2,100,000 | $2,600,000 | $106,800 | 8% of the excess over $2,100,000 |
| $2,600,000 | $3,100,000 | $146,800 | 8.8% of the excess over $2,600,000 |
| $3,100,000 | $3,600,000 | $190,800 | 9.6% of the excess over $3,100,000 |
| $3,600,000 | $4,100,000 | $238,800 | 10.4% of the excess over $3,600,000 |
| $4,100,000 | $5,100,000 | $290,800 | 11.2% of the excess over $4,100,000 |
| $5,100,000 | $6,100,000 | $402,800 | 12% of the excess over $5,100,000 |
| $6,100,000 | $7,100,000 | $522,800 | 12.8% of the excess over $6,100,000 |
| $7,100,000 | $8,100,000 | $650,800 | 13.6% of the excess over $7,100,000 |
| $8,100,000 | $9,100,000 | $786,800 | 14.4% of the excess over $8,100,000 |
| $9,100,000 | $10,100,000 | $930,800 | 15.2% of the excess over $9,100,000 |
| $10,100,000 | and over | $1,082,800 | 16% of the excess over $10,100,000 |
The first line is 3.06% of the taxable estate. For each later bracket, add the amount in the third column to the rate applied to the excess over the figure in the first column. Check the form for the edition that matches the date of death.
The form's applicable credit works like this, per the 2025 instructions. If the New York taxable estate is not more than the basic exclusion, the credit equals the whole tax, so no tax is due. If it is more than the exclusion but not more than $7,518,000 (the exclusion plus 5% for 2025), you use a worksheet that shrinks the credit. If it is more than $7,518,000, the credit is zero and the full table tax is due.
Applying the same 5% rule to the 2026 exclusion of $7,350,000 gives $7,717,500 (derived: $7,350,000 x 1.05). We calculated that from the 2025 instructions, so confirm it in the 2026 Form ET-706 instructions before relying on it.
The 2025 instructions include an example for an estate with a New York taxable estate of $7,354,036, which is $194,036 over the $7,160,000 exclusion.
| Worksheet step | Amount |
|---|---|
| Taxable estate over the exclusion (line 3) | $194,036 |
| 5% of the basic exclusion (line 4) | $358,000 |
| Line 3 divided by line 4 (line 5) | 0.5420 |
| 1.0 minus line 5 (line 6) | 0.4580 |
| Exclusion multiplied by line 6 (line 7) | $3,279,280 |
| Applicable credit: table tax on line 7 (line 8) | $208,011 |
The table tax on $7,354,036 is $685,348.90 ($650,800 + 13.6% of $254,036). Subtracting the $208,011 credit leaves about $477,337.90 of tax. An estate exactly at the exclusion owes nothing, and one above $7,518,000 gets no credit at all, so the last few percent over the line is taxed very heavily. These are 2025 figures from the instructions, shown as an illustration of the method.
New York adds back taxable gifts made within three years of death, so deathbed gifts do not remove value from the calculation. The DTF page we reviewed describes an estate tax; it does not describe a separate inheritance tax paid by heirs. Estates near the exclusion amount are the ones most exposed to the cliff, and they are where professional advice matters most. For how New York compares with other states see our state estate tax guide and our New York income tax guide.
NY Department of Taxation and Finance: Estate tax, IRS Revenue Procedure 2025-32, Form ET-706, New York State Estate Tax Return (9/25), Form ET-706-I instructions (2025).
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