At a glance
| State estate tax | Yes — exemption $7,350,000N.Y. Tax Law § 952 (imposition & rate table; basic exclusion amount and cliff at § 952(c)) · 2026 deaths |
|---|---|
| Estate top rate | 16%N.Y. Tax Law § 952 (imposition & rate table; basic exclusion amount and cliff at § 952(c)) · 2026 deaths |
| 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 — see the full New York transfer-on-death deed guide for the requirements, revocation, and alternatives. 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
- New York small-estate procedure — the state’s simplified transfer or administration route, eligibility rules, and claimant responsibilities.
- ← Back to the 51-jurisdiction comparison
Sources & methodology
Methodology & sources
Estate and inheritance tax figures reviewed by Sakineh Majd, J.D. — Maine Bar #004999 · 2026-07-24. The review memo explains its scope and source checks.
Tax figures include citations and source effective dates. Unconfirmed figures direct readers to the state. Aggregator roundups are not sources. See our editorial standards.
General information, not legal or tax advice. Residency, property location, and title can change the result. A professional licensed in New York can assess your situation.
Last verified July 18, 2026.