At a glance
| State estate tax | Yes — exemption $7,350,000N.Y. Dept. of Taxation & Finance — Estate tax · deaths Jan 1 – Dec 31, 2026 |
|---|---|
| Estate top rate | 16%N.Y. Tax Law § 952 · current |
| Inheritance tax | No |
| Small-estate ceiling | $50,000N.Y. SCPA Art. 13 (§ 1301) · current |
| TOD deed for real estate | AvailableN.Y. Real Property Law § 424 (TOD deed) · eff. Jul 19, 2024 |
| Community-property state | No |
Estate tax
New York imposes its own estate tax with a basic exclusion amount of $7,350,000 for deaths on or after January 1, 2026. New York indexes the amount annually (it was $7,160,000 for 2025), so confirm the figure for the actual year of death with the Department of Taxation and Finance.
The tax is computed on the New York taxable estate using the graduated table in Tax Law § 952, topping out at a 16% marginal rate on estates over $10,100,000. New York allows no portability of a deceased spouse's unused exclusion.
The headline trap is the New York "cliff." The exclusion phases out between 100% and 105% of the basic exclusion amount and disappears entirely once the taxable estate exceeds 105% of it — $7,717,500 in 2026. Past that line the entire estate is taxed from the first dollar, not merely the excess. Separately, Tax Law § 954 adds back taxable gifts made within three years of death.
Inheritance tax
New York has no inheritance tax — beneficiaries are not taxed on what they receive by the state. New York does not impose an inheritance tax; beneficiaries owe no state tax based on what they inherit.
Probate basics
An estate with personal property of $50,000 or less can be settled through the simplified voluntary-administration process under SCPA Article 13, avoiding full probate. Real property is not administered through it.
New York is a common-law (separate-property) state for ownership between spouses. A transfer-on-death deed for real estate is Available N.Y. Real Property Law § 424 (TOD deed) · eff. Jul 19, 2024. The probate deadlines for this state — filing the will, the creditor-claim window, the inventory — are cited in the Executor & Heir’s Guide.
State-specific quirks
The New York cliff
New York's exclusion is not a true exemption. Once the taxable estate exceeds 105% of the exclusion — $7,717,500 in 2026 — the exclusion vanishes and the entire estate is taxed, not just the overage. An estate a few percent over the line can owe hundreds of thousands of dollars, so planning to stay at or below the exclusion near the threshold is critical.
Three-year gift add-back
Taxable gifts made within three years of death are pulled back into the New York gross estate (Tax Law § 954, with limited exceptions). Because of the cliff, an add-back can even push an otherwise-exempt estate over the 105% line. The provision is scheduled to sunset for deaths on or after January 1, 2032.
TOD deeds are new here
New York historically did not authorize transfer-on-death deeds, but Real Property Law § 424, effective July 19, 2024, now permits them — so a recorded TOD deed can pass real property outside probate. Older materials calling New York a no-TOD-deed state are out of date.
Where to read next
- the federal lifetime exemption — how the far larger federal exclusion works — and why a state tax can still apply below it
- funding a revocable trust — the most common way to keep property out of probate entirely
- the ILIT cluster — keeping a life-insurance death benefit out of a taxable estate
- the Executor & Heir's Guide — the probate deadlines for this state, cited to the statute
- ← Back to the 51-jurisdiction comparison
Sources & methodology
Methodology & sources
Every tax figure on this page links to the primary source it was verified against — a New York statute or department-of-revenue page — with that source’s own effective date. Aggregator round-ups are never used as a source. State death and probate law changes every legislative session; this page carries the date it was last re-verified, and any figure that could not be confirmed from a primary source is flagged for you to check with the state rather than guessed. See our editorial standards.
This page is educational and is not legal or tax advice. Whether a death tax applies turns on residency, where property sits, and how title is held — details a general page cannot resolve. Confirm your own situation with a professional licensed in New York.
Last verified July 20, 2026.