Quick answer: exemption of $7,350,000 for 2026, rates from 3.06% to 16% — but the credit that makes the exemption work disappears entirely above 105% of that number. Run your own numbers in the New York estate tax calculator.
The full bracket table, straight from the statute
The credit formula that creates the cliff
Below the exclusion, the credit exactly equals the tax computed on the estate, so nothing is owed. Between 100% and 105% of the exclusion, the credit is instead computed on a REDUCED base: the exclusion amount multiplied by one minus a fraction, where that fraction is the excess over the exclusion divided by 5% of the exclusion. As the estate creeps from 100% toward 105%, that fraction climbs from 0 toward 1, shrinking the credit base — and the credit itself — toward zero. Past 105%, the statute simply states no credit is allowed at all.
The "Santa Clause" workaround
Estate planners in New York often draft what's informally called a "Santa Clause" — a formula charitable bequest directing that an amount exactly equal to the excess of the New York taxable estate over the exclusion amount go to a qualified charity. This brings the taxable estate back down to precisely the exclusion amount, avoiding the phase-out band and the cliff entirely, while still leaving a defined amount for family beneficiaries.
The exclusion moves every year
For decedents dying in 2019 and later, the basic exclusion amount is recalculated annually: $5,000,000 multiplied by a cost-of-living adjustment tied to the Consumer Price Index, then rounded to the nearest $10,000. That's why the figure has moved from $7,160,000 for 2025 to $7,350,000 for 2026.
A local probate attorney can review your estate — many offer a free consultation.
Form ET-706 is due 9 months after death, and taxable gifts made within three years of death are generally added back to the estate before this table is applied.