The numbers for 2026
- New York exclusion: $7.35 million per person
- Federal exclusion: $15 million per person
- The cliff: if the taxable estate exceeds the exclusion by more than 5%, the exclusion is lost entirely and the whole estate is taxed, at rates up to 16%.
What makes New York different
- No portability. A surviving spouse can't use the first spouse's unused New York exclusion, unlike the federal system.
- Lifetime gifts. New York has no gift tax, but certain taxable gifts made within three years of death are added back to the estate.
- Nonresidents. Nonresidents who own New York real estate or tangible property can owe New York estate tax on that property.
- Deadline. The New York estate tax return is generally due nine months after death.
Planning ideas
Estates near the cliff can benefit significantly from planning, such as charitable bequests that keep the taxable estate under the threshold, lifetime gifting, and coordinating ownership between spouses. We work alongside your estate attorney on the numbers.
Frequently asked questions
What is the New York estate tax exemption for 2026?
$7,350,000 per person, compared with $15 million for federal estate tax.
What is the New York estate tax cliff?
If a taxable estate exceeds the exclusion amount by more than 5%, the exclusion is eliminated entirely and the full estate is subject to New York estate tax.
Does New York have portability between spouses?
No. Each spouse's New York exclusion is use-it-or-lose-it.
Does New Jersey have an estate tax?
No. New Jersey repealed its estate tax in 2018, but its inheritance tax still applies to some beneficiaries.