What Are the Tax Implications of Inheriting an Estate in Westchester, the Bronx, or Queens

Inheriting a home or property can be both a blessing and a challenge. For many families across Westchester County, the Bronx, and Queens, it’s a meaningful gift that carries emotional value, but it also comes with important financial considerations, particularly when it comes to taxes. Understanding how estate, inheritance, and capital gains taxes work can help you make smarter decisions about what to do with the property you’ve inherited.

Estate Taxes in New York

New York is one of the few states that still imposes an estate tax, but not an inheritance tax. That means the estate itself,  not the person inheriting, is responsible for paying taxes if the estate’s value exceeds the state threshold.
As of 2025, New York’s estate tax exemption is $6.94 million. If the estate’s total value exceeds that amount, it may trigger a tax on the portion above the threshold. However, most single family homes or condos in Westchester, the Bronx, or Queens fall below that limit, especially if other assets are divided among multiple heirs.

Capital Gains and Selling an Inherited Property

If you decide to sell the property, capital gains tax may apply, but here’s the good news: you typically get a “stepped-up basis.”
That means instead of paying tax based on what the original owner paid, you pay based on the property’s value at the time of inheritance. For example, if your parents bought a Bronx home decades ago for $100,000 and it’s worth $700,000 when you inherit it, your taxable gain starts at $700,000, not $100,000. If you sell it for $720,000, you’d only pay capital gains on the $20,000 difference.

Property Taxes and Ownership Transfer

Once the property officially transfers to your name, you’ll take over ongoing property taxes, insurance, and maintenance costs. Be aware that property taxes in Westchester and parts of Queens can increase after reassessment, especially if the estate hasn’t been updated in many years. It’s always wise to consult with a local real estate professional and a tax advisor before making decisions about keeping or selling.

Bottom line: Inheriting a home in Westchester, the Bronx, or Queens can be a great opportunity, but understanding your tax obligations is key to protecting that value. Whether you’re thinking about selling, renting, or holding onto the property, getting expert guidance can make all the difference.

📞 Kent Cintron | Licensed Real Estate Agent
📧 kent.cintron@randrealty.com
📱 (646) 427-3035

Let’s discuss the smartest strategy for your inherited property, so you can keep more of what’s yours.