NY Executor Guide
New York Estate Tax: the $7.35 Million Exclusion and the Cliff
Most New York estates owe no estate tax. But New York’s exclusion does not work like the federal one: slightly over the line, it disappears.
New York estate tax cliff calculator
Checks where an estate sits against the exclusion and the 105% cliff; it does not compute the tax. The 2025 cut-off ($7,518,000) is from the official ET-706 instructions; the 2026 cut-off is our arithmetic until the 2026 instructions are published. A CPA or estate attorney should run the actual return.
How does the New York estate tax cliff work?
Tax Law § 952 gives a credit that wipes out the tax on estates at or below the basic exclusion amount. Between 100% and 105% of the exclusion, that credit shrinks by formula. Above 105%, “no credit shall be allowed” — so the entire estate is taxed from the first dollar, not just the amount over the line.
| Year of death | Basic exclusion amount | No credit above (105%) |
|---|---|---|
| 2025 | $7,160,000 | $7,518,000 (official ET-706 instructions) |
| 2026 | $7,350,000 | $7,717,500 (our arithmetic) |
An illustration (our arithmetic, 2026): a New York taxable estate of $7,350,000 owes nothing. At $7,800,000 — above the $7,717,500 cliff — there is no credit, and the § 952 rate table gives $650,800 plus 13.6% of the excess over $7,100,000, or $746,000. Rates run from 3.06% on the first $500,000 up to 16% above $10,100,000.
Who has to file a New York estate tax return?
- Residents: if the federal gross estate plus includible gifts exceeds the basic exclusion amount. The federal gross estate includes more than the probate estate.
- Nonresidents: if the estate includes real or tangible property located in New York and the same federal gross estate test is met.
- Gifts: taxable gifts made within 3 years of death are added back, for deaths before January 1, 2032.
When is it due, and what else is involved?
- Due date: file Form ET-706 and pay within 9 months of death, with a copy of federal Form 706 even if no federal return is otherwise required.
- Extensions: a filing extension is generally limited to 6 months, and a payment extension of up to 4 years may be granted for undue hardship — but interest runs from the 9-month date either way.
- Real property: a release of the estate tax lien (Form ET-117) is submitted for each county where the decedent owned real property; Form ET-30 applies where no ET-706 is being filed. A release is not required for property held jointly only by the decedent and the surviving spouse.
- No waivers for personal property: New York does not require tax waivers for estates of people who died on or after February 1, 2000.
- Closing letter: the department issues most closing letters about 9 months after filing.
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Frequently asked questions
What is the New York estate tax exemption for 2026?
The basic exclusion amount is $7,350,000 for deaths from January 1 through December 31, 2026. For 2025 deaths it was $7,160,000.
Does New York have an inheritance tax?
No. New York imposes a tax on the transfer of the estate itself, not on what each heir receives, so there is no rate that depends on the beneficiary’s relationship to the decedent.
What is the New York estate tax cliff?
If the New York taxable estate exceeds 105% of the basic exclusion amount, no credit is allowed at all and the whole estate is taxed (Tax Law § 952). Between 100% and 105% the credit shrinks. For 2025 deaths the official cut-off is $7,518,000; for 2026 our arithmetic gives $7,717,500, pending the 2026 form instructions.
When is the New York estate tax return due?
Form ET-706 is due, and the tax must be paid, within 9 months of the date of death. A copy of the federal Form 706 goes with it even if no federal return is otherwise required. A filing extension is generally limited to 6 months, and interest runs from the 9-month date either way.
Does an estate under the exemption have to file?
A resident estate files only if the federal gross estate plus includible gifts exceeds the basic exclusion amount. Separately, releasing the estate tax lien on New York real property may involve Form ET-117 or, where no ET-706 is being filed, Form ET-30.
Are lifetime gifts counted?
Taxable gifts made within 3 years before death are added back, a rule extended for deaths before January 1, 2032.