It's been three years since my father died.

Literal

Father [subject-が] died [since-てから] 3-years [into-に] becomes [polite-ます].

~てから marks the elapsed time since an event. 死んでから uses the direct word 死ぬ ('to die') — less euphemistic than 亡くなる. ~になります ('it becomes / it has been') is a natural way to state elapsed durations.