The New York Estate Tax Taxable Estate

Resident of New York State

The New York taxable estate for the estate of an individual who was a New York State resident at the time of his or her death is equal to the New York gross estate minus the deductions allowable for determining the federal taxable estate (except to the extent the deductions relate to real or tangible personal property located outside of New York State).

The New York gross estate of a deceased resident is equal to his or her federal gross estate (whether or not a return is required):

• reduced by any real or tangible property located outside of New York State,
• increased by the amount related to limited powers of appointment created prior to September 1, 1930, and
• increased by the amount of taxable gifts under IRC Section 2503 made during the three-year period ending on the decedent’s death, to the extent those gifts are not already included in the federal gross estate, subject to statutory exceptions. The addback generally excludes gifts made (a) while the decedent was not a New York resident; (b) before April 1, 2014; (c) between January 1 and January 15, 2019; and (d) consisting of real or tangible personal property located outside New York at the time of the gift. Under current New York law, this three-year addback applies to deaths before January 1, 2032

Non Resident of New York State

The New York taxable estate for the estate of an individual who was a nonresident at the time of his or her death is computed in the same way as the New York taxable estate for the estate of a resident, except that it does not include:

• the value of any intangible personal property otherwise includible in the deceased individual’s New York gross estate, and
• the amount of any gift otherwise includible in the New York gross estate of a resident, unless the gift was made while the nonresident individual was a resident of New York State and it consisted of real or tangible personal property having a location in New York State or intangible personal property employed in a business, trade, or profession carried on in New York state.

The New York taxable estate of a nonresident also excludes any works of art that are loaned to (or en route to or from) a public gallery or museum in New York State solely for exhibition purposes at the time of the individual’s death, provided no part of the net earnings for the public gallery or museum inure to the benefit of any private stockholder or individual.

See: New York State Estate Tax Rates and the Basic Exclusion Amount

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