Originally Posted by BobC
California currently has no estate or inheritance tax.
However, New York state does have an estate tax, but no inheritance tax. For 2022, the minimum threshold to be subject to New York's estate tax is $6.11M. As long as your taxable estate is worth less than this amount, there is no estate tax due New York. This exemption threshold amount is subject to change and goes up each year based on same inflation factor. However, New York also has a quirky twist to their estate tax law. As long as your estate value does not go up any higher than 105% of that estate tax exemption threshold, which for 2022 is $6,415,500 ($6.11M X 105%), you only pay New York estate tax on the value of the estate in excess of the 2022 exemption threshold amount of $6.11M.
But, go just $1 over the 105% amount of $6,415,500 to $6,415,501, and the entire value of the estate, including the previously exempt $6.11M, is now all subject to New York estate tax. And kind of like income taxes, New York estate taxes are calculated on a graduated tax rate schedule that starts at 3.06% on the first taxable dollars of the estate, and goes all the way up to 16.0% that starts once the taxable value of the estate goes over $10.1M. Here's New York state's current estate tax table for 2022 shown below.
So based on this, if someone passed away in 2022 and left the heirs a card valued for estate purposes at say $10M, and there was nothing else in the estate, that entire $10M would be subject to New York estate tax based on the table below, which would end up being $1,067,600 in estate tax due.
NEW YORK ESTATE TAX RATES
Taxable Estate* Base Taxes Paid Marginal Rate Rate Threshold**
$1 – $500,000 $0 3.06% $1
$500,000 – $1 million $15,300 5.0% $500,000
$1 million – $1.5 million $40,300 5.5% $1 million
$1.5 million – $2.1 million $67,800 6.5% $1.5 million
$2.1 million – $2.6 million $106,800 8.0% $2.1 million
$2.6 million – $3.1 million $146,800 8.8% $2.6 million
$3.1 million – $3.6 million $190,800 9.6% $3.1 million
$3.6 million – $4.1 million $238,800 10.4% $3.6 million
$4.1 million – $5.1 million $290,800 11.2% $4.1 million
$5.1 million – $6.1 million $402,800 12.0% $5.1 million
$6.1 million – $7.1 million $522,800 12.8% $6.1 million
$7.1 million – $8.1 million $650,800 13.6% $7.1 million
$8.1 million – $9.1 million $786,800 14.4% $8.1 million
$9.1 million – $10.1 million $930,800 15.2% $9.1 million
Over $10.1 million $1.082 million 16% $10.1 million
That help?
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