New York Estate Tax: The Cliff 

The 2024 New York state estate tax threshold is $6.94 million (as adjusted for inflation). Thus, if an individual’s estate is worth less than $6.94 million and they die in 2024, the estate owes nothing to the state of New York.

But beware of the cliff. New York has a “cliff” that impacts weallthy families. If the New York estate exceeds the $6.94 million exemption by less than 5%, it only pays taxes on the amount that goes over the threshold. If the total value is more than 105% of the exemption amount, taxes are paid on the entire New York estate.

Example: 105% of $6.94 million is $7,287,000. If your estate is worth between $6,940,000 and $7,287,000 in 2024, you only pay tax on the amount that exceeds $6.94 million. So if your estate is worth $6.99 million, your taxable estate is only $50,000. If your estate surpasses $7,287,000, all of your estate is taxable. So if your total estate is $7.75 million, for example, you will pay estate taxes on the full amount.

​

See: Planning to eliminate or mitigate the New York State Estate Tax through lifetime gifts.