$7.16M gross estate threshold
2025 NY estate tax filing threshold. Estates at or above must file Form ET-706.
The essentials
Non-residents with NY property
Even non-residents can trigger the filing if they owned NY real estate or tangible personal property.
9-month deadline
Nine months from date of death. Extensions on Form ET-133, but tax owed is still due by original date.
Overview
More than asset distribution — filings matter
It is true that handling the estate of someone who passed away in New York has more than just asset distribution in the process — it generally necessitates filing a New York State Estate Tax Return. There is a threshold. In the case that the value of the estate exceeds the New York estate tax thresholds, this filing is a must. The NY estate tax filing requirements should be acknowledged to prevent delays and establish full compliance with state tax law.
01Who files
Who needs to file a New York State Estate Tax Return?
2025 threshold
$7.16M
As of 2025, estates with a gross value exceeding $7.16 million are required to file a New York State Estate Tax Return leveraging Form ET-706. This threshold is determined by the New York estate tax thresholds and is adjusted periodically.
The gross estate includes the total fair market value of all assets the decedent owned at the time of death.
Real estate (residential and commercial)
Bank and brokerage accounts
Investment portfolios
Business interests and privately held shares
Life insurance proceeds payable to the estate
Tangible personal property — vehicles, art, jewelry, collectibles
02Companion filings
Filing taxes for a deceased person in NY
The executor or personal representative is responsible for these filings on top of the estate return.
IT-201
Final NY personal income tax return
Covers income earned by the decedent from January 1 of the year of death to the date of death.
Form 1041 (federal)
Estate income tax return
Required if the estate earns $600 or more in gross income during the administration period.
In addition, if the estate exceeds the New York estate tax thresholds, a New York State Estate Tax Return (Form ET-706) should be filed.
03Filing triggers
What triggers an estate tax return?
Two primary factors generate the necessity to file.
Estate above the threshold
Gross estate value exceeds $7.16 million (2025), in line with the current New York estate tax thresholds.
Non-resident with NY property
Even if the deceased resided outside of New York, ownership of property like a Manhattan apartment, artwork, or other valuable assets within the state can trigger filing.
04Common confusion
Estate tax vs. inheritance tax in New York
One of the most misunderstood topics in estate planning — specifically in New York.
Estate tax
On the total estate — before distribution
Assessed on the total value of the decedent’s estate before assets are allocated to beneficiaries. This is what the New York State Estate Tax Return (Form ET-706) covers.
Inheritance tax
Not levied in New York
Imposed on individuals who inherit assets. New York does not have an inheritance tax. Beneficiaries are not taxed at the state level when receiving their share.
In New York, the estate itself is responsible for paying any tax due, not the heirs.
05Tax refunds
State tax refunds and the estate’s income
If an estate receives a state income tax refund, it might be considered taxable income, depending on how the decedent filed prior returns.
- If the decedent itemized deductions and claimed a deduction for state income taxes, the refund is generally reportable on Form 1041.
- The refund should be included in the estate’s gross income if it fulfills the reporting threshold.
- It may increase the estate’s income tax liability for the year it is received.
06Checklist
What’s included in a NY estate tax return
Both professional documentation and supporting records — an organized checklist prevents surprises.
Required documents
- Completed Form ET-706
- Copy of the decedent’s death certificate
- Copies of the will and any trust documents
- Appraisals for real estate and other significant assets
- A copy of Federal Form 706, if it was filed
Supporting documentation
- Recent bank and brokerage statements
- Documentation of debts and liabilities owed by the estate
- Records of funeral expenses and administrative costs
07Deadline
Nine months from the date of death
9 months
from date of death
Extensions might be requested using Form ET-133.
Any tax owed should still be paid by the original deadline — to prevent penalty payments and interest fees.
Managing an estate?
If you are managing an estate and need expert aid, our team can present assistance with every requirement. Contact us for expert support with your New York estate tax filing. Call (212) 641-0673.
08FAQ
Estate tax return FAQs
Do I need to file an estate tax return in NY?
Yes, if the estate exceeds the New York estate tax threshold of $7.16 million in 2025, a New York State Estate Tax Return (Form ET-706) is a must.
How do I file NYS taxes for a deceased person?
The executor must file Form IT-201 for the decedent and Form ET-706 if required under NY estate tax filing requirements.
How long does the IRS take to process an estate tax return?
IRS processing of Form 706 can take 6 to 9 months, in parallel with complexity level as well as completeness.
What is the threshold for NY estate tax?
In 2025, the New York estate tax threshold is $7.16 million. Estates above this amount must file Form ET-706.
How to avoid New York state estate tax?
Smart estate planning might have a lowering impact on exposure. Consult taxation experts to explore exemptions or gifting as well as trust strategies.
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On estate administration and complex filings
“You’ve already paid tax on this money when you are earning it actively, and then all of a sudden it gets taxed again when it goes to your child or your grandchild or whoever it’s going to. So proper estate planning is very important.”
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File on time — file complete
Nine months to file — start the paperwork early
The Form ET-706 instructions and preparing an effective estate tax return checklist NY both have major participations in the bigger picture of successful estate administration. Call (212) 641-0673 or send the contact form. No charge for the conversation.
Reviewed by George Dimov, CPA, New York, NY. Serving clients in all 50 states, 15+ years advising executors and administrators on estate settlement and NY estate tax filings. President of George Dimov, CPA, a New York City firm serving clients across the five boroughs and nationwide.