Tax Strategy & PlanningAugust 31, 2026· 8 min read
How to get an EIN number
Cost, lost numbers, W-9 entries, LLC ordering and foreign applicants each have their own answer. Start here and we will point you at the right one.
12+
Years Serving NYC
50
States Covered
5★
Rated on Yelp
150,000+
Returns Filed
Open
Evenings & Weekends
Section 01
New York vs. Federal Estate Tax Exemptions
The federal estate tax exemption is significantly higher than New York’s. This discrepancy means that many estates that escape federal taxation may still be subject to New York estate tax. For example, if an estate is valued at $8 million, it would be below the federal exemption threshold but $1.42 million over New York’s, resulting in state-level estate taxes.
In contrast, estates exceeding both thresholds face dual taxation. While federal estate taxes are assessed at a maximum rate of 40%, New York’s rates range from 3.06% to 16%. Combined, these taxes can significantly reduce the value of an estate passed on to heirs.
Section 02
Key Considerations for Estate Planning
Coordinating federal and state estate tax planning is critical for high-net-worth individuals. Strategies to reduce or avoid taxes at both levels include:
Lifetime Gifting
Federal laws allow annual gifts of up to $17,000 per recipient in 2023 without impacting your lifetime exemption. This reduces your taxable estate under both systems.
Trusts: Irrevocable trusts can help shield assets from estate taxes by removing them from your taxable estate.
Charitable Contributions
Donations to qualified charities can reduce the taxable value of your estate, benefiting both federal and state tax calculations.
Portability
At the federal level, portability allows a surviving spouse to use any unused portion of their deceased spouse’s exemption. New York, however, does not offer portability, making careful planning even more critical for state taxes.
Section 03
Final Thoughts
Federal and New York estate tax laws can overlap, potentially imposing significant tax liabilities on large estates. Coordinating strategies to address both systems is essential for minimizing taxes and preserving wealth. Working with an experienced tax advisor or estate planning attorney can help ensure your estate plan is optimized to navigate these complexities.
No cost to start
Questions about your specific situation?
Fifteen minutes with a CPA who handles this every week. We will walk you through your options — no sales pitch, no obligation.
Client reviews
What our clients say
“George has prepared and maintained the corporate accounting and provided consultant services for my company for a number of years. He has always done an outstanding, professional and courteous job. I feel that his rates are very fair and he provides a great value for the cost.”
“Excellent service and very professional. George and his team have been handling my business taxes for years and I couldn't be happier with the results. They are always available to answer questions and provide expert advice.”
“I've been working with Dimov CPA for both personal and business taxes. Their attention to detail and knowledge of tax law has saved me thousands. Highly recommend to anyone looking for a reliable CPA in NYC.”
Keep reading
More insights selected for you
Tax Strategy & PlanningAugust 26, 2026· 8 min read
Tourist and city taxes on a New York hotel stay
Is there a tourist tax in New York City? Not under that name. What visitors pay is a hotel occupancy tax stacked on top of three separate sales taxes.
Tax Strategy & PlanningAugust 26, 2026· 8 min read
Transfer taxes on a New York property sale
Who pays New York transfer taxes, at what rate, and how they affect your basis. NYS, NYC RPTT, and the buyer paid mansion tax, explained by a New York CPA.
Ready when you are
Let's talk about the next step
A CPA will review your situation and give you a straight answer. No commitment, no jargon.
