Many workers will notice a change in their paychecks as New York’s minimum wage rises once more. Beginning on January 1st, 2026, minimum wage earners throughout the state will receive an additional 50 cents per hour. Governor Kathy Hochul’s 2024 state budget included the increases as part of a plan that called for increases in 2024, 2025, and 2026, with automatic adjustments starting in 2027.
Right now, the minimum wage in New York changes depending on the location. The highest rates are mostly found in Long Island, Westchester County, and New York City; the rest of the state has lower rates.
The second of two consecutive 50-cent raises in 2026 will push hourly wages for minimum wage workers in the state to all-time highs after several years of gradual increases.
How much will minimum wage be in 2026?
New York’s minimum wage in 2026 will be:
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$17 per hour in New York City, Westchester County, and Long Island
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$16 per hour in the rest of New York State
For many years, $15 per hour was the target amount that legislators discussed. That objective was ultimately accomplished statewide in 2024, though at different times in different areas:
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The minimum wage increased to $15 throughout the state and $16 in NYC, Westchester, and Long Island in 2024.
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It went up to $16.50 and $15.50, respectively, in 2025.
New Year’s Day in 2026 is the next step. A full-time employee working 40 hours a week outside of the city would make about $640 per week, or about $33,000 annually before taxes, at $16 per hour. $17 per hour equates to roughly $680 per week before taxes in the NYC/Westchester/Long Island area. Even though living expenses are higher there, the raise still provides some leeway to deal with growing costs.
What changes in 2027 and beyond?
A system to automatically update the minimum wage beginning in 2027 was also established by the 2024 budget. The Consumer Price Index for Urban Wage Earners and Clerical Workers for the Northeast Region (CPI-W) will then determine New York’s minimum wage.
Rent, food, and transportation prices are all tracked by this index over time. The concept is that the minimum wage should increase to at least partially keep up with rising everyday expenses. The CPI-W is considered by the state as the most accurate regional inflation indicator for New York.
The annual growth rate after 2027 will be determined by the CPI-W. There may be little change in wages if inflation is low. But a higher rate of inflation could end up in a bigger rise. The most important thing to remember is that, with no legislative action, the minimum wage will be routinely modified using this formula.
What this means for workers
The coming decades will see two significant changes for New York minimum wage workers. First, there are the specific, planned increases through 2026:
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Through 2026, clear increases to $17 per hour in NYC, Westchester, and Long Island and $16 in the rest of the state.
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Automatic modifications will start in 2027 based on the Northeast’s CPI-W.
These adjustments cannot solve every financial problems; at the moment, inflation in the United States is a serious issue, and many people struggle to make ends meet and prioritize paying for necessities like rent, food, and medications. However, those making minimum wage will earn more than they did a few years ago due to an increase in pay. And hopefully, although the rise is still small, it can help a lot to many families.
Putting it simply, New York is trying to prevent the minimum wage from falling so far behind prices that it becomes unsustainable. Both the new inflation link starting in 2027 and the planned increases through 2026 are steps in that direction, providing workers with some stability during a period when daily expenses can seem uncertain.