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Question

How does the New York estate tax cliff operate?

Answer

The New York estate tax cliff kicks in when your taxable estate exceeds 105% of the basic exclusion amount — $7,717,500 in 2026. Below that threshold, only the excess above the exemption is taxed. Above it, you lose the exclusion entirely and the full estate is taxed from the first dollar. This can mean an estate worth $7.72 million owes significantly more tax than one worth $7.71 million.

Related FAQs

How can I benefit from an estate plan if I live in New York?

How do I calculate my New York estate tax?

What’s the difference between New York and federal estate tax?
Estate Planning Tax Planning Asset Protection Trusts Living in Retirement Tax Tips & Tricks Protecting Your Legacy Generational Wealth FAQs
Last Updated Oct. 20, 2026
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