New York State, like other states such as Pennsylvania and New Jersey, has an Estate Tax that is payable by the estates of New York residents or by those owning real property in New York. The estate tax is a transfer tax, meaning a tax on the fair market value off assets transferred from one person to another. In this case, it is the transfer of assets at one person’s death to another person, the beneficiary.
What is Taxed: The tax includes all assets in the gross estate, which means all the property that the deceased owned, had control over or had an interest in at death. Some states exclude certain assets from taxation, such as Pennsylvania’s exclusion of life insurance. New York does not.