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NY implements new laws affecting taxes, wages, and driving in 2026
NNew York

NY implements new laws affecting taxes, wages, and driving in 2026

  • January 1, 2026

WATERTOWN, New York (WWNY) – New York State has implemented several new laws and policies for 2026 that will affect residents’ finances, driving records, and environmental regulations.

Tax credits and wages increase

Tax credits for children will increase for the 2026 tax year. Families are eligible for a tax credit of $1,000 for each child under the age of 4. For children ages 4-17, the credit will increase from $330 to $500 per child.

“All the stresses of providing for the child, and if someone is struggling or perhaps a single parent, you know, it’s compounded. So we have worked hard as a state to find ways to just help parents, you know, I’ve said all along, ‘your family is my fight,’” said Gov. Kathy Hochul.

Starting Thursday, the state minimum wage will increase from $15.50 to $16 an hour. Next year, the rate will increase based on the measure of inflation.

Driving violations carry higher penalties

Starting in February, drivers could face a point on their license for having a taillight out, as the Department of Motor Vehicles is expanding its Driver Violation Point System. Existing violations like speeding, using a phone, or passing a stopped school bus will all carry higher points and stay on licenses longer.

“Not only are points lasting a little bit longer on the license itself, you know, it doesn’t go away after 18 months, it’ll go away after 24 months. With the violations having an increase in points, it is a little bit easier to reach that threshold,” said Valerie Puma, AAA communications specialist.

In addition to a broken light, some other new violations include illegal U-turns and failing to move over for emergency vehicles.

Environmental restrictions expand

In 2026, the state will crack down on environmental pollution, as the Department of Environmental Conservation will expand its polystyrene foam ban. The foam is often used in takeout containers and is a top contributor to environmental litter. This year, food service providers, manufacturers, or stores will not be allowed to sell or distribute polystyrene foam containers if they are not encased in a more durable container and used for cold storage.

The DEC will also restrict hotels from providing single-use plastic bottles for items like shampoo or body wash. Any plastic bottle containing less than 12 ounces will be prohibited under these new provisions.

Copyright 2026 WWNY. All rights reserved.

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