The landscape of estate taxation in New York has shifted significantly in 2026. Two major changes affect how families in Brooklyn plan their estates and navigate the Surrogate's Court process.
New York State Exemption: $7.35 Million
For 2026 deaths, New York’s basic exclusion is $7,350,000. Filing depends on the federal gross estate plus includible gifts and residency. The exclusion credit phases out above the basic exclusion and is eliminated above 105%; the relevant measure is the taxable estate. See the state requirements and ET-706 instructions.
A property value alone does not establish an estate’s tax liability. Ask a tax adviser to review valuations, gifts, deductions and the rules for the year of death before estimating tax.
Federal Basic Exclusion for 2026: $15 Million
The federal basic exclusion for 2026 is $15 million per individual. Do not assume married couples automatically receive a combined $30 million exclusion; portability requires an election and has its own rules. Check the IRS guidance.
What This Means for Brooklyn Estates
Federal filing rules also consider prior taxable gifts, residency and citizenship. Review federal requirements separately rather than assuming a house worth less than $15 million resolves the question. See the IRS estate-tax guidance.
Key Actions to Take
- Review your estate plan — if your estate is near the $7.35M threshold, consult with an estate planning attorney about strategies to stay below the cliff.
- File the estate tax paperwork early — if a loved one has passed and the estate may be near the threshold, file the New York State Estate Tax Return (ET-706) as soon as possible.
- Check lien-release requirements before planning a sale. Use the official lien-release guidance to check the forms, supporting documents and current processing estimate.
- Consider irrevocable trusts — for estates approaching the threshold, irrevocable trusts can remove assets from the taxable estate (subject to the 5-year Medicaid look-back period).
Filing Deadlines
ET-85 does not have a universal nine-month filing deadline. Its use depends on the estate’s filing requirements, whether an executor or administrator has been appointed, and the time since death. Check the official ET-85 instructions before using it. For a lien release, consult the Tax Department’s form-selection chart; ET-117 may need to accompany ET-30, ET-85 or ET-706, depending on the circumstances.
For a complete guide to estate tax forms and procedures, see our Estate Tax Guide.
Tax-form guidance reviewed September 19, 2026.