New York Minimum Wage: Current Rates, History, & Next Increases (2026 Update)
The New York minimum wage continues to rise as part of a multi-year schedule designed to keep pace with the cost of living. As of January 1, 2026, the statewide minimum wage will increase again, with different rates for New York City, Long Island/Westchester, and the rest of the state. This guide summarizes the 2026 minimum wage rates, explains how they have changed over time, and highlights what employers should know to stay compliant under New York Labor Law.
2026 New York Minimum Wage Rates by Region
Effective January 1, 2026.
| Region | Hourly Minimum (2026) |
|---|---|
| New York City | $17.00 |
| Long Island & Westchester | $17.00 |
| Remainder of New York State | $16.00 |
Note: Beginning in 2027, New York indexes the minimum wage to inflation (CPI-W, Northeast), subject to an “off-ramp.”
2026 Tipped Minimum Wages (Hospitality – Restaurants & Hotels)
For certain employees, employers may combine a required cash wage with a limited tip credit up to the regional minimum.
Food Service Workers (e.g., waitstaff, counter service)
| Region | Cash Wage (min) | Max Tip Credit | Basic Minimum (target) |
|---|---|---|---|
| New York City | $11.35 | $5.65 | $17.00 |
| Long Island & Westchester | $11.35 | $5.65 | $17.00 |
| Remainder of New York State | $10.70 | $5.30 | $16.00 |
Service Employees (who regularly receive tips but are not food service workers)
| Region | Cash Wage (min) | Max Tip Credit | Basic Minimum (target) |
|---|---|---|---|
| New York City | $14.15 | $2.85 | $17.00 |
| Long Island & Westchester | $14.15 | $2.85 | $17.00 |
| Remainder of New York State | $13.30 | $2.70 | $16.00 |
Fast food workers are not eligible for a tip credit and must be paid at least the regional basic minimum.
What’s Next: Future New York Minimum Wage Increases
Beginning in 2027, New York will automatically adjust the minimum wage each year based on inflation. The law ties future increases to the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) for the Northeast region, ensuring wages keep pace with rising living costs.
Each September, the New York State Department of Labor will announce the updated rates for the following January. Annual adjustments will be capped if the state’s economy declines or unemployment rises significantly. This “off-ramp” provision allows the Governor to pause an increase when justified by economic conditions.
Employers should plan for modest annual increases starting in 2027—typically in the range of 3–4% per year based on recent CPI trends—and continue monitoring official DOL announcements each fall. Payroll systems, job postings, and pay transparency disclosures should all reflect the new rates once published.
Source: NYS Chapter 56 of the Laws of 2023 (Part S) establishing CPI-linked annual indexing of the state minimum wage beginning January 1, 2027.
Minimum Wage History (2016–2026)
| Year | New York City* | Long Island & Westchester | Remainder of NY State |
|---|---|---|---|
| 2016 (12/31) | $11.00 (large) / $10.50 (small) | $10.00 | $9.70 |
| 2017 (12/31) | $13.00 (large) / $12.00 (small) | $11.00 | $10.40 |
| 2018 (12/31) | $15.00 (large) / $13.50 (small) | $12.00 | $11.10 |
| 2019 (12/31) | $15.00 (all employers) | $13.00 | $11.80 |
| 2020 (12/31) | $15.00 | $14.00 | $12.50 |
| 2021 (12/31) | $15.00 | $15.00 | $13.20 |
| 2022 (12/31) | $15.00 | $15.00 | $14.20 |
| 2023 | $15.00 | $15.00 | $14.20 |
| 2024 (1/1) | $16.00 | $16.00 | $15.00 |
| 2025 (1/1) | $16.50 | $16.50 | $15.50 |
| 2026 (1/1) | $17.00 (scheduled) | $17.00 (scheduled) | $16.00 (scheduled) |
* NYC used separate schedules for large (≥11 employees) and small (≤10) employers through 2019.
Sources: NYS DOL historical tables (NYC, LI/Westchester, and Remainder rates through 2025) and NY.gov confirming the $0.50 step-ups in 2025 and 2026 with CPI-indexing starting in 2027.
Horton Law has tracked annual New York minimum wage changes since 2016. This page reflects the current rates and historical data through 2026.
Employer FAQs About the New York Minimum Wage
What changed for the New York minimum wage in 2026?
Effective January 1, 2026, the basic minimum wage is scheduled to increase to $17.00 in New York City and in Long Island/Westchester, and to $16.00 in the rest of New York State. Tipped cash wages and tip credits in hospitality adjust accordingly.
Does New York City have a different rate than upstate?
Yes. New York has regional rates: NYC; Long Island/Westchester; and the remainder of the state. NYC and Long Island/Westchester are aligned at $17.00 for 2026, while the remainder is $16.00.
How do tipped minimum wages work for restaurants and hotels?
Hospitality employers (Part 146) may pay a lower cash wage and claim a tip credit, provided the employee’s tips bring pay up to at least the regional basic minimum each week. If tips are insufficient, the employer must make up the difference. Fast-food workers are not tip-credit eligible.
Do salaried exempt employees need an update when the minimum wage changes?
Minimum wage changes do not directly alter the FLSA “salary basis” threshold, but New York has its own state salary thresholds for executive/administrative exemptions that typically move with wage schedules. Review current NY thresholds to confirm exempt status and adjust salaries if needed.
When should we update postings, handbooks, and payroll systems?
Plan updates before the first payroll on or after January 1, 2026. Update payroll configurations, job ads, wage notices where required, and any internal documents that reference pay rates. Confirm tip-credit notices and recordkeeping for hospitality roles.
What happens after 2026?
Beginning in 2027, New York will index the minimum wage annually to inflation (CPI-W, Northeast), subject to an “off-ramp” if economic conditions warrant. NYSDOL announces new rates each fall for the following January.
How should we handle employees working in multiple regions?
Pay is based on the location where the work is performed. Track hours by job site and apply the correct regional rate for those hours. If an employee works across regions in the same pay period, ensure each hour is paid at or above the applicable regional minimum.
Do independent contractors count?
No. Minimum wage laws apply to employees. However, New York uses strict worker-classification tests—misclassification risk is significant. If in doubt, review the relationship against state and federal tests or seek counsel.