Exemption & rate verified against primary sources · Updated August 27, 2026
New York Estate Tax in 2026: Exemption, Rates & Calculator
New York's estate tax has a feature that catches people off guard: a "cliff." Stay at or under the $7,350,000 exemption and you owe nothing. Exceed 105% of it, and the entire exemption disappears — the FULL estate is taxed from the first dollar, not just the amount over the line.
Calculate New York estate tax for your situationHow New York taxes an estate
New York runs the full taxable estate through a graduated 15-bracket schedule (3.06% up to 16%), then subtracts a credit that shrinks as the estate approaches 105% of the exemption and disappears entirely once it's crossed — that's the cliff. Below is the bracket schedule the credit calculation is built on; the credit mechanism itself is what determines how much of it you actually pay.
Applied to the FULL New York taxable estate — this table is the base schedule; the cliff credit (see notes below) determines how much of the resulting tax is actually owed.
| Range | Rate |
|---|---|
| $0 – $500,000 | 3.1% |
| $500,000 – $1,000,000 | 5.0% |
| $1,000,000 – $1,500,000 | 5.5% |
| $1,500,000 – $2,100,000 | 6.5% |
| $2,100,000 – $2,600,000 | 8.0% |
| $2,600,000 – $3,100,000 | 8.8% |
| $3,100,000 – $3,600,000 | 9.6% |
| $3,600,000 – $4,100,000 | 10.4% |
| $4,100,000 – $5,100,000 | 11.2% |
| $5,100,000 – $6,100,000 | 12.0% |
| $6,100,000 – $7,100,000 | 12.8% |
| $7,100,000 – $8,100,000 | 13.6% |
| $8,100,000 – $9,100,000 | 14.4% |
| $9,100,000 – $10,100,000 | 15.2% |
| Over $10,100,000 | 16.0% |
Worked example
A $7,717,501 taxable estate is just over 105% of the $7,350,000 exemption ($7,717,500) — enough to trigger the cliff. The full estate is taxed through the graduated schedule with no credit at all, producing $734,780 in New York estate tax. A flat-16%-of-everything approximation would have overstated this by roughly 68%.
Rules worth knowing
- The cliff means an estate at $7,717,499 (just under 105%) can owe meaningfully less tax than one at $7,717,501 (just over) — the exact dollar amount matters enormously near that line.
- Between 100% and 105% of the exemption, New York phases the credit out gradually rather than removing it all at once — it's only crossing the 105% line itself that triggers the full cliff.
Filing deadline
The federal Form 706 return, when required, is due 9 months after the date of death (IRC §6075(a)). New York's own estate tax return has its own deadline — confirm the exact requirement with the New York State Department of Taxation and Finance rather than relying on the federal date.
More on estate tax
For how federal estate tax works alongside state estate tax, the 2026 federal exemption, and spousal portability, see the full estate tax guide.