This calculator shows where an estate sits against the New York exclusion, what it owes, what the three-year gift add-back is costing, and the marginal cost of the next $10,000 of estate value.
Are you over the New York estate tax cliff?
New York takes the whole exclusion away once an estate passes 105% of it. A few thousand dollars can cost several hundred thousand in tax. This shows where an estate sits.
The gift box is optional and is part of the estate figure, not an addition to it. Enter the taxable gifts made in the three years before death that are already included in the New York taxable estate above, and the tool will show what the add-back is costing.
Basic exclusion amount from the New York State Department of Taxation and Finance estate tax page. Rates and the loss of the credit above 105% of the exclusion from Tax Law section 952. Figures verified .
How it works
New York has a cliff, not a threshold
Most people assume New York works like the federal estate tax, where only the amount above the exclusion is taxed. It does not. Once an estate passes 105% of the exclusion, the exclusion is lost entirely and the whole estate is taxed, not just the excess.
The effect is severe and narrow. In the band just past the cliff, the next $10,000 of estate value can cost far more than $10,000 in tax. At a $7,400,000 estate in 2026 the next $10,000 costs $26,950, an effective rate of 269.5% against a top New York rate of 16%. The calculator prints that marginal figure because it is the number that changes decisions.
| Estate value | New York estate tax |
|---|---|
| $7,350,000 | None |
| $7,400,000 | $136,843 |
| $7,500,000 | $386,430 |
| $7,600,000 | $592,016 |
| $7,717,500 | $734,780 |
| $7,800,000 | $746,000 |
| $8,000,000 | $773,200 |
Gifts made in the last three years come back
New York adds back taxable gifts made within three years of death. The gift box on the calculator is a breakdown of the estate figure above it rather than an addition to it, because the New York taxable estate already includes what the rule catches.
The add-back does not apply to deaths on or after 1 January 2032 as the law currently stands. That date has been extended before.
Questions
Common questions
Does the federal exclusion help?
It is much larger, so most estates that owe New York tax owe nothing federally. The two are separate calculations and New York is the one that binds on Long Island.
Is life insurance inside the estate?
A policy you own is, for New York purposes, which is why a policy bought to solve a liquidity problem can enlarge the problem it was bought to solve. See the life insurance calculator and the estate page.
Check this against your own numbers.
The cliff is narrow, the arithmetic either side of it is unforgiving, and the fixes have to be in place beforehand rather than afterwards. We can cover it in a short conversation, at no charge and with no obligation.
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