Estate Tax Filings in New York: Deadlines, Requirements, and Penalties

New York administers its estate tax independently of the federal system. That means an estate owing nothing to the IRS may still face a New York tax. With a smaller exemption, strict deadlines, and penalties (plus interest) for late or inaccurate filings, details and timing are critical.

At Davies Law Firm, attorneys Frederick P. Davies and William P. Davies help families throughout Syracuse, Onondaga County, and Central New York handle estate tax obligations. When you’re settling an estate, getting the numbers right and filing on time protects what beneficiaries receive. As estate planning lawyers in Syracuse, we work with executors and administrators to calculate what’s owed, prepare required documents, and meet every deadline.

If you’re managing an estate or planning for the future, you need to know how tax requirements affect your situation. Schedule a telephone conference with Davies Law Firm at (315) 472-6511 for guidance on deadlines, filing requirements, and avoiding penalties that reduce what your loved ones inherit.

New York Estate Tax Basics

If you live in Syracuse or handle an estate here, the state estate tax can come as a surprise. The tax applies to the transfer of property at death, and the rules have seen several updates in recent years. Your assets are valued on the date of death, and that figure drives both filing and tax exposure.

What Triggers State Estate Tax Filing Obligations

An estate tax return is required if the decedent’s estate and any taxable gifts they made while living in New York exceed the state exemption. This is true for estates administered in Syracuse Surrogate’s Court and throughout Onondaga County.

Your gross estate is the total value of everything you owned or had control over when you died. This includes things like a house in Syracuse, a camp on Oneida Lake, bank accounts, investment accounts, business interests, and personal belongings.

Everything is valued as of the date of death.

Certain assets commonly push Syracuse and Onondaga County estates over the line. Life insurance proceeds are included if the decedent owned the policy. Retirement accounts such as IRAs and 401(k)s are included, too. Even families who never viewed themselves as wealthy often cross the filing threshold because of those items.

How the State Estate Tax Differs from the Federal Estate Tax

For 2025, the federal exemption is $13.99 million per person. The state’s exemption is much lower, so many estates in Syracuse and the wider Onondaga County area owe state tax even when no federal tax is due.

You can owe both federal and New York estate taxes. Under federal rules, a surviving spouse can use any unused federal exemption from the spouse who died (called “portability”). New York doesn’t allow portability. Each spouse only gets their own New York exclusion, so planning only around the federal rules can still leave Central New York couples owing New York estate tax.

The state’s calculation also includes a cliff. If your taxable estate exceeds the NY exemption by more than 5%, the exemption benefit can be lost entirely. That result surprises many Syracuse executors. A modest amount over the line can trigger tax on the entire taxable estate instead of just the excess.

Current Exemption Thresholds in the State

For deaths in 2025, New York’s basic exclusion amount is $7.16 million. Estates below that amount generally owe no state estate tax.

What counts depends on where you live:

• Residents of Syracuse and elsewhere in Onondaga County are taxed on worldwide assets. Your Florida condo, California stocks, and a Swiss account all count toward the $7.16 million figure.
• Nonresidents are taxed only on New York property. A Pennsylvania resident with a vacation home near the Adirondacks includes that New York real estate and any other New York assets in the calculation, but not out-of-state property.

If you’re planning or administering an estate in Syracuse, it helps to start with a clear inventory of the assets as of the date of death. From there, have your attorney and tax professionals review how New York’s estate tax threshold and the “cliff” rule may apply before any distributions are made. Following that order keeps everyone on the same page and can help prevent unpleasant surprises for families in Onondaga County, across Central New York, and statewide.

Who Must File an Estate Tax Return

Filing obligations depend on the estate’s value and the deceased person’s residency status. You can’t simply skip filing because you think the estate falls below the threshold. The state requires documentation in certain situations, even when no tax is due.

Estates That Exceed the $7.16 Million Threshold

Any fiduciary of an estate with a gross value over $7.16 million must file Form ET-706 with the Department of Taxation and Finance. In most cases, that person is the executor named in the will. If there is no will or no executor has been appointed, the court-appointed administrator, sometimes called the personal representative, is responsible for filing.

The gross estate calculation includes property passing outside probate. Joint bank accounts that transfer automatically to a surviving owner still count. Transfer-on-death accounts and payable-on-death designations don’t avoid taxation. The gross estate captures the full value of these assets.

When Non-Residents with New York Property Must File

Non-residents holding real estate or tangible personal property within New York may face filing obligations. To determine if a return is required, the state considers the total federal gross estate plus includible gifts, rather than looking exclusively at local holdings. However, the actual tax liability is calculated solely based on the value of assets situated within the jurisdiction.

Example: If someone lives in Pennsylvania but dies owning a $6 million house in Syracuse, they only need to file a New York estate tax return if the total value of everything they owned, plus certain gifts they made, is higher than New York’s estate-tax limit (called the basic exclusion amount). If a return is required, New York calculates the tax using only the property located in New York. Also, New York usually doesn’t tax a nonresident’s “intangible” property, like bank accounts, stocks, or bonds, unless those assets are used in a business that operates in New York.

Filing Requirements for Estates Below the Exemption Amount

If the estate is clearly below $7.16 million, New York generally does not require a return. Some representatives still choose to file to start the statute of limitations on additional assessment. If no return is filed, the state can assess at any time.

If you receive a request from the Department of Taxation and Finance for an estate tax return, you must respond, even if you believe filing is not required. Ignoring a request can trigger a presumption that the estate exceeded the threshold. This advice applies to estates handled in Syracuse, throughout Onondaga County, across Central New York, and statewide.

Critical Filing Deadlines for Estate Tax Returns

If you are handling an estate in Syracuse, timing matters. Missing New York estate tax deadlines can cost real money for families in Syracuse and across Onondaga County. Interest starts the day the tax is due, and penalties can stack on top. If you distribute assets before the estate tax is paid, you, as the executor, could face personal liability. As these rules are effective statewide, this guide is designed to help you prepare in advance and ensure a smooth process.

The Nine-Month Deadline After the Date of Death

State estate tax returns are due nine months after the date of death. The clock starts on the date of death, not when you are appointed or when probate opens in the Onondaga County Surrogate’s Court.

Example: If your loved one died on January 15, 2025, the return is due October 15, 2025. If that date falls on a weekend or holiday, the deadline moves to the next business day. This timing applies in Syracuse, all of Onondaga County, and throughout Central New York.

Practical tip for Syracuse executors: mark the nine-month date as soon as you have the death certificate. Set calendar reminders for 60 days out and 30 days out so you are not rushing.

How to Request a Six-Month Extension

If more time is needed to file the estate tax return, your estate attorney and/or accountant can request an extension before the nine-month deadline. This typically provides additional time to complete the filing, but it does not extend the time to pay any tax that may be due. If there’s an unpaid balance after nine months, interest may still apply.

This can be especially helpful for Syracuse-area estates that are asset-rich but cash-light, like those holding a closely held business or multiple local properties. In those situations, our team can also explore options for additional time to pay or set up a structured payment approach when available. Executors in Onondaga County often use the extra filing time to finish appraisals and valuation work while making a good-faith payment to help reduce interest.

Consequences of Missing the Initial Filing Deadline

Miss the filing deadline and owe tax, and the state can impose a failure to file penalty of 5 percent of the unpaid tax per month or part of a month, capped at 25%. Interest keeps running on top of that. Reasonable cause relief may be available for serious events like major illness or a natural disaster, but you must request it in writing and include documentation. 

If you’re in Central New York and something truly outside your control happened, the safest next step is to get legal help right away so your attorney’s team can take over and handle the details for you. Once you’re represented, your legal team will guide you on what documentation matters and help preserve the proof you need. 

Payment Deadlines vs. Return Filing Deadlines

The payment due date aligns with the filing due date for estates in Syracuse and across New York. A filing extension does not move the payment deadline. If you cannot pay the full amount, still file the return on time and pay as much as you can. New York may add a late payment penalty of 0.5% per month or part of a month, up to 25%, plus interest on the unpaid balance.

The Department of Taxation and Finance can approve payment plans, but you must request one. Do not ignore a bill or delay without an approved arrangement. That choice can create serious financial problems for the estate and exposure for you as the executor in Onondaga County and the wider Central New York region.

If you need help mapping out the timeline or preparing the required paperwork in Syracuse, it is best to reach out early so your legal team can take the lead. Once they are involved, they can help you confirm key dates, request any needed appraisals promptly, and keep thorough records of filings and payments to support your case.

Estate Planning Lawyers in Syracuse – Davies Law Firm

Required Documentation and Forms for Estate Tax Filing

Gathering complete documentation takes time, especially in Syracuse and the rest of Onondaga County. You need original appraisals, certified copies of deeds, bank statements as of the date of death, and business valuations if the estate included any ownership interests. Incomplete filings lead to audits, requests for additional information, and delayed estate closings.

Form ET-706: New York Estate Tax Return Overview

Form ET-706 is the state’s estate tax return. It requires full asset listings, deductions, and prior taxable gifts presented on the state’s form. You cannot attach only the federal return and call it done. ET-706 has its own structure and instructions.

The return uses multiple schedules by asset type. Schedule A covers real estate. Schedule B lists stocks and bonds. Schedule C is for mortgages, notes, and cash. Each schedule asks for specific data in a specific format.

The executor signs the return under penalties of perjury, stating that it is true, correct, and complete. Attorneys Frederick P. Davies and William P. Davies recommend involving both your attorney and your accountant at every step of the estate tax process. They also suggest having legal counsel review the completed return before you file, so you can catch mistakes early and reduce the risk of issues that could lead to an audit in Syracuse or anywhere in Onondaga County.

Supporting Schedules and Attachments You’ll Need

Real estate requires appraisals from qualified appraisers. You can’t use property tax assessments or Zillow estimates. The state wants formal appraisals performed by licensed professionals who follow recognized valuation standards.

Bank and investment accounts need statements showing values as of the date of death. If death occurred mid-month, you’ll need statements from the financial institutions specifically dated to the death date. Month-end statements aren’t sufficient if death occurred on a different date.

Closely held business interests require formal valuations. If the deceased person owned part of a family business, professional corporation, or limited liability company, you need a business appraiser to determine the fair market value of that interest. These valuations can take months to complete and cost thousands of dollars.

Life insurance requires documentation of policy values and beneficiary designations. You’ll need Form 712 from each insurance company showing the policy value as of the date of death. Even term life insurance must be listed if the policy has any value.

Appraisals and Valuations Required for Real Property

Every parcel needs an appraisal. That includes a primary home in Syracuse, a camp in Onondaga County, rental properties around Central New York, and any vacant land. The appraiser must be independent and qualified. Do not use an appraisal commissioned by someone with a stake in lowering the value.

Local knowledge matters. Properties in the Syracuse market move differently from downstate. Use appraisers who work in Onondaga County and nearby Central New York communities.

The valuation must reflect fair market value on the date of death. The appraiser should use comparable sales near that date and make appropriate adjustments. Later market swings do not change the reporting requirement.

Bank Statements and Financial Records to Gather

Request date of death statements for every bank account, brokerage account, and retirement account. Ask the institutions for certified statements that show balances as of the exact date.

Accounts with payable on death or transfer on death designations are still part of the gross estate for tax purposes. They may have passed outside probate, but you still report them.

Joint accounts need careful work. With a spouse, New York usually uses 50% for reporting. With a non-spouse co-owner, you may need documentation of each person’s contributions to determine the includible share.

Business Valuation Documents for Closely Held Companies

Family businesses, professional practices, and LLC interests require a professional valuation. Book value or a quick estimate will not do. A business appraiser will review tax returns, profit and loss statements, balance sheets, ownership agreements, customer concentration, and market data. Expect a detailed methodology and a clear conclusion of value.

Local economic conditions matter in Central New York. A Syracuse restaurant, a Fulton contractor, or a Skaneateles boutique will not be valued the same way as a similar business in Manhattan. The report should reflect the realities of Onondaga County and the surrounding region.

What to gather now: three to five years of financial statements and tax returns, current year interim financials, organizational documents, buy-sell agreements, capitalization tables, major contracts, and a brief description of operations. Starting early helps you file a complete ET-706 and reduces the chance of audit delays in Syracuse, across Onondaga County, and throughout New York.

Required document/section	What it covers	What you must gather / key requirements
Form ET-706: New York Estate Tax Return Overview	New York’s estate tax return requiring full asset listings, deductions, and prior taxable gifts; uses multiple schedules by asset type.	You cannot rely on attaching only the federal return; Schedule A = real estate, Schedule B = stocks/bonds, Schedule C = mortgages/notes/cash; executor signs under penalties of perjury; recommended attorney + accountant involvement and legal review before filing.
Supporting Schedules and Attachments You’ll Need	Supporting proof for assets and values reported on ET-706.	Formal real estate appraisals; date-of-death bank/investment statements (mid-month may require death-date statements); formal closely held business valuations; life insurance documentation including Form 712 from each insurer showing value as of date of death.
Appraisals and Valuations Required for Real Property	Valuation of every real property parcel in the estate.	Appraisal for each parcel (home, camp, rentals, vacant land); use independent, qualified appraisers with local Onondaga/Central NY knowledge; value must reflect fair market value on date of death using comparable sales near that date; do not use property tax assessments or Zillow estimates.
Bank Statements and Financial Records to Gather	Financial account values included in the gross estate for tax purposes.	Request certified date-of-death statements for bank, brokerage, and retirement accounts; POD/TOD accounts are still reported; joint accounts: typically 50% with spouse, and for non-spouse co-owners you may need documentation of contributions to determine includible share.
Business Valuation Documents for Closely Held Companies	Documentation needed to support formal valuations of privately held business interests.	Professional valuation required (not book value/quick estimates); appraiser reviews tax returns, profit and loss statements, balance sheets, ownership agreements, customer concentration, and market data; gather 3–5 years of financials and tax returns, current-year interim financials, organizational documents, buy-sell agreements, capitalization tables, major contracts, and a brief operations description.

How to Calculate Estate Tax Liability

New York’s tax calculation includes several steps. You start with the gross estate, subtract allowable deductions, and apply the tax rates. The cliff tax provision complicates this calculation significantly for estates close to the exemption amount.

Determining Gross Estate Value in Syracuse

Start with everything the person owned or controlled on the date of death. For a Syracuse decedent, that includes local real estate, bank and brokerage accounts, stocks, bonds, retirement accounts, and life insurance proceeds if the policy is owned by the decedent or the estate. Do not skip personal property. Cars, jewelry, artwork, collectibles, and household items must be valued and counted.

You must value each asset as of the date of death. Markets fluctuate, so using values from a month before or after death isn’t acceptable. The specific date matters.

State law also adds back certain gifts. Taxable gifts made within three years of death are included in the state estate tax base for decedents dying on or after January 16, 2019, and before January 1, 2032. Important carve-outs apply. The add-back rule has a few exceptions. For example, it generally does not apply to gifts made when the person lived outside New York, to certain gifts made during periods when the law was different, or to gifts of real estate or physical property located outside the state. This matters for many Central New York families, especially if you own a vacation home or other property in another state.

Allowable Deductions from the Gross Estate

You can reduce the estate with documented, reasonable costs paid or payable by the estate:

• Funeral and burial costs, cremation fees, and memorial expenses.
• Administration expenses such as legal and accounting fees, appraisal fees, and executor commissions. Use invoices or good contemporaneous estimates if the bills are not final yet.
• Debts that existed at death, including credit card balances, mortgages, personal notes, and unpaid taxes. Keep statements that show the balance on the date of death.

Transfers to a surviving spouse usually qualify for the marital deduction. This can reduce the state estate tax to zero at the first spouse’s death, but it shifts tax exposure to the survivor’s estate. Charitable bequests to qualified organizations also reduce the taxable estate. Keep copies of the will or trust provisions and any receipts for recordkeeping. These same principles apply in Onondaga County Surrogate’s Court and throughout Central New York.

The Cliff Tax Provision That Catches Many Estates

The state exclusion comes with a 5% “cushion.” If your taxable estate, after deductions, stays at or below the exclusion plus 5%, you keep the benefit of the exclusion. If it exceeds that level, you lose the exclusion entirely, and the whole estate becomes taxable.

Here is what that looks like with the figures many Syracuse estates use. With a $7.16 million exclusion, the 5% cushion is about $358,000. An estate valued at roughly $7.518 million crosses the line and falls off the cliff. That change can create a much larger tax than families expect in Onondaga County and nearby towns.

Planning near the line helps. Charitable gifts, paying legitimate expenses before filing, or timing deductions can bring an estate just under the cliff amount. Small moves here can save hundreds of thousands of dollars for families in Syracuse and across Central New York.

One more tool to ask about is a “Santa Clause” in your will or trust. This is a simple formula charitable clause that directs a gift to charity only if, and only to the extent that, the charitable deduction saves more New York estate tax than the amount given. When it works, it can pull the taxable estate back under the cliff and leave more for your loved ones. 

Tax Rates and Brackets for Estates

The state applies a graduated rate schedule to the taxable estate after deductions. Rates begin at 3.06% in the lowest bracket and rise to 16% at the top. You calculate tax on the net figure, not the gross estate. Good documentation for deductions can materially lower the bill.

Estates that fall off the cliff face much higher effective rates. A Syracuse estate just above the threshold can be taxed near the top rate on almost the entire value, not only on the excess. If your numbers are close, run the math precisely before finalizing returns. This approach serves families in the city of Syracuse, the rest of Onondaga County, and the broader Central New York region, with the same framework applying statewide.

Penalties for Late or Incorrect Estate Tax Filings

Handling an estate in Syracuse or anywhere in Onondaga County comes with firm deadlines and rules. If the return is late, incomplete, or based on shaky valuations, the Department of Taxation and Finance can add interest, stack penalties, and in rare cases pursue criminal charges. Your goal is simple. File a complete return on time, pay what is due, and back up every value with solid records.

Interest Charges on Unpaid Estate Taxes

Interest starts running from the original due date, which is nine months after death. An extension to the file does not stop interest. If tax is unpaid on day one of month ten, interest accrues until the state receives full payment. The Department sets the rate each quarter and compounds it daily. Check the rate right before you pay to avoid a surprise.

You cannot deduct estate tax interest on the estate’s income tax return. It is a pure added cost. For Syracuse and Onondaga County estates, this often becomes the biggest avoidable expense when families wait to liquidate assets. If cash is tight, consider a short-term plan to cover the expected tax so the meter does not keep running.

Late Filing Penalties and How They Accumulate

File late and the penalty begins at 5% of the unpaid tax for the first month. Add another 5% for each additional month or part of a month. The cap is 25%. If you are more than 60 days late, the minimum penalty is the lesser of 100 dollars or 100% of the unpaid tax. That rule can sting smaller Syracuse estates that owe a small amount but miss the date.

Late filing and late payment penalties are separate. You can get hit with both if the return and the payment are late. Run the numbers early. In Onondaga County and Central New York, it often helps to submit the return on time with your best available documentation and pay what you reasonably expect to owe, then amend if needed. That approach limits add-ons while you finish valuations.

Penalties for Substantially Undervaluing Estate Assets

The state imposes an accuracy-related penalty of 10% if the tax you report is less than the correct tax by more than 10% or $2,000 (whichever is greater). New York also assesses separate penalties for late filing (5% per month up to 25%) and late payment (0.5% per month up to 25%), plus interest that compounds daily.

Reasonable cause can avoid these penalties. Use qualified appraisers, keep engagement letters, and save every report. If a good-faith appraisal later proves off, you can explain your process. Simple carelessness does not qualify. For real estate in the city of Syracuse or elsewhere in Central New York, order reports early so you are not pushed into rough estimates near the deadline.

Criminal Penalties for Fraudulent Estate Tax Returns

Filing a false or fraudulent return with the intent to evade tax can lead to criminal tax fraud under New York law. Penalties scale with the amount involved and can include felony charges, fines, and imprisonment. These cases are not common, but they happen when someone hides assets or fabricates deductions.

Helping someone commit fraud is also a crime. That includes professionals who knowingly assist. Most estates in Syracuse and across New York run into ordinary mistakes, not criminal conduct. The line is crossed when there is intentional concealment. If you uncover an error, fix it promptly. Acting quickly can keep a civil problem from turning into something worse.

When to Hire an Estate Planning Attorney in Syracuse

Estate tax returns demand precision. A Syracuse estate planning attorney can help you with valuations, filing deadlines, and lawful ways to reduce taxes. 

Distribute assets before paying estate taxes, and you can face personal liability. If you pay beneficiaries and later find there is not enough left for taxes, the state may pursue you for the difference. An attorney helps you avoid that risk.

Bring in legal guidance early for complex estates. Business interests, multiple properties, uncertain values, or likely disputes call for professional guidance. The fee often pays for itself through tax savings and the prevention of costly mistakes.

Getting the Help of a Skilled Attorney at Davies Law Firm

Estate tax filings come with firm deadlines, detailed requirements, and real penalties for mistakes. If you are settling an estate in Syracuse or planning ahead, a short call can prevent costly missteps. 

If you are the executor or administrator, or you are planning for the future, talk with our team. Attorneys Frederick P. Davies and William P. Davies advise families throughout Syracuse, Onondaga County, and Central New York on estate tax deadlines, documentation, and strategies that reduce exposure to penalties and interest.

Call Davies Law Firm at (315) 472-6511 to schedule a telephone conference. Ask your questions about estate tax filings, deadlines, requirements, and penalties, and get practical guidance for your next step.