New York Estate & Inheritance Tax

What the New York Estate Data Reveals

New York layers a state estate tax on top of the federal regime — exemption of $6,940,000 with rates from 3.06% to 16%, and spousal portability is not recognized. For estates above this state threshold but below the federal $13,990,000 exemption (2025), state law is the binding constraint, which is exactly the bracket most affluent households fall into. There is no separate inheritance tax, so beneficiaries receive their share without a second state-level deduction at distribution.

IRS Statistics of Income data show 693 federal estate tax returns filed by New York residents in the most recent available year (filing year 2023), reporting $36.25 billion in combined gross estate value. Net federal estate tax paid totaled $4.32 billion that year. Across the multi-year IRS SOI series above, New York averages roughly 651 taxable filings per year, with an effective federal rate on reported gross estates of about 10.2%.

Probate itself typically runs 9–24 months in New York (roughly 17 months on average), with court filing fees of $215–$1,250. Attorney compensation is set by statute at approximately 5% of the estate, which is a material fixed cost even for uncontested estates. New York does offer a simplified small-estate track for estates under $50,000, which most families use to bypass full formal probate. Because New York has not adopted the UPC, probate practice can vary materially by county and judicial district. As a common-law (separate property) state, New York treats each spouse's holdings individually unless jointly titled, so titling choices drive what actually enters the probate estate.