An Overview of the Estate Tax Laws in New York (2024)
Are you a New York State resident? If so, you need a comprehensive estate plan. For high asset people, estate taxes should be considered. At Poulos LoPiccolo PC, we have extensive experience handling estate planning matters, including estate taxes. Here, our New York estate planning lawyer provides a guide to the estate tax laws in New York state in 2024.
What is the Estate Tax?
The estate tax is a levy imposed on the transfer of property and assets from a deceased person to their heirs or beneficiaries. However, the tax applies only to estates exceeding a certain exemption threshold. In practice, only a relatively small number of estates have any estate tax liability.
There is a federal estate tax in place. Beyond that, several U.S. states also impose a state-level estate tax. As of September of 2024, the Tax Foundation reports that 12 states and the District of Columbia have their own estate tax. New York has an estate tax, but New Jersey does not.
The New York Exemption Protects Most Estates from Estate Tax Liability
Our state has a large estate tax exemption threshold. To face any level of New York State estate tax liability, the value of your estate—inclusive of property owned in other jurisdictions—must be greater than the threshold. For the year of 2024, the threshold is $6.58 million. In other words, if the estate is valued at less than that amount, there is no estate tax liability.
Big Estate Planning Caveat in New York (The Estate Tax Cliff)
Unlike federal law, New York has a unique feature known as the “estate tax cliff.” If an estate exceeds the exemption threshold by more than 5 percent—$6.909 million for 2024— it loses the exemption entirely. In other words, the entire estate becomes taxable—not just the amount above the exemption. Exceeding the estate tax exemption by even a small percentage could bring a huge additional tax bill. It is a provision of New York law that makes careful planning a must. A top-tier New York estate planning attorney can help.
New York has a Graduated Estate Tax
The New York Department of Taxation and Finance explains that our state has a graduated estate tax system. Simply explained, that means that the estate tax rate rises for those with greater assets. Remember, only estates that exceed the statewide estate tax threshold have any estate tax liability. The estate tax brackets for New York State are as follows:
- $0 to $500,000: 3.06% to 5%
- $500,001 to $1 million: 5% to 6.5%
- $1,000,001 to $5 million: 6.5% to 10.2%
- $5,000,001 to $10 million: 10.2% to 13%
- Over $10 million: 13% to 16%
Contact Our New York Estate Planning Attorney Today
At Poulos LoPiccolo PC, our New York estate planning lawyer has the skills and experience to take on the full range of estate tax planning matters. Have questions about your options? We can help. Contact us today to arrange your confidential, no commitment case review. With a law office in Manhattan, we provide solutions-focused estate planning services in New York State.
Source:
taxfoundation.org/data/all/state/state-estate-tax-inheritance-tax-2023/
