As you may already know, there is no way of avoiding paying taxes every single year. But also, you may not even be able to escape taxes upon your unfortunate death. That is, New York State is one of 12 states that imposes state estate taxes. This is not to mention the possibility of being eligible for double taxation with the enforced federal estate taxes. Without further ado, please follow along to find out the federal and state estate tax implications and how a proficient New York City asset preservation attorney at Zimmet Law Group, P.C. can help you carefully consider this during your estate planning process.
What are the estate tax implications in New York State?
As the name indicates, state estate taxes have your estate pay taxes before your named beneficiaries can inherit the remaining property and assets you left behind for them. Now, the amount your estate is taxed depends on its net value. As of 2025, the New York State estate tax rates are as follows:
- For a taxable estate of $1 to $500,000:
- A $0 base tax and a 3.06 percent taxable amount.
- For a taxable estate of $500,000 to $1 million:
- A $15,300 base tax and a five percent taxable amount.
- For a taxable estate of $1 million to $1.5 million:
- A $40,300 base tax and a 5.5 percent taxable amount.
- For a taxable estate of $1.5 million to $2.1 million:
- A $67,800 base tax and a 6.5 percent taxable amount.
- For a taxable estate of $2.1 million to $2.6 million:
- A $106,800 base tax and an eight percent taxable amount.
- For a taxable estate of $2.6 million to $3.1 million:
- A $146,800 base tax and an 8.8 percent taxable amount.
- For a taxable estate of $3.1 million to $3.6 million:
- A $190,800 base tax and a 9.6 percent taxable amount.
- For a taxable estate of $3.6 million to $4.1 million:
- A $238,800 base tax and a 10.4 percent taxable amount.
- For a taxable estate of $4.1 million to $5.1 million:
- A $290,800 base tax and an 11.2 percent taxable amount.
- For a taxable estate of $$5.1 million to $6.1 million:
- A $402,800 base tax and a 12 percent taxable amount.
- For a taxable estate of 6.1 million to $7.1 million:
- A $522,800 base tax and a 12.8 percent taxable amount.
- For a taxable estate of $7.1 million to $8.1 million:
- A $650,800 base tax and a 13.6 percent taxable amount.
- For a taxable estate of 8.1 million to $9.1 million:
- A $786,800 base tax and a 14.4 percent taxable amount.
- For a taxable estate of $9.1 million to $10.1 million:
- A $930,800 base tax and a 15.2 percent taxable amount.
- For a taxable estate of $10.1 million or more:
- A $1.082 million base tax and a 16 percent taxable amount.
Do I also have to consider federal estate taxes in my estate planning?
If your estate is worth more than $10.1 million, you may begin worrying about federal estate taxes in addition to the 16 percent state estate rate. That is, federal estate taxes apply once your total estate hits more than $13.99 million, or $27.98 million if you are one part of a married couple. The rate may range from anywhere between 18 percent to 40 percent.
Obviously, this may be a big hit on the property and assets you want your beneficiaries to keep. This is why, as a high-net-worth individual, you must be very strategic with your estate plan. This may simply start with establishing an irrevocable tax trust, and then you can go from there.
To conclude, you must be fully equipped to enter your upcoming estate planning procedures. Your preparation is incomplete without hiring a talented New York City estate planning attorney. Contact Zimmet Law Group, P.C. today.
