5 New North Carolina Laws Taking Effect on January 1st

Here are five of the most impactful new laws taking effect in the Tar Heel State this January.

1. Individual Income Tax Drop (3.99%)

In one of the most anticipated financial shifts for residents, North Carolina's individual income tax rate is decreasing once again. This is part of a multi-year plan established by the General Assembly to reduce the tax burden on state residents.

• The New Rate: Starting January 1st, the flat individual income tax rate drops from 4.25% to 3.99%.
• Take-Home Pay: This change is automatically reflected in the 2026 NCDOR withholding tables, meaning most workers will see a slight increase in their net paychecks starting with the first pay period of the year.

2. Corporate Income Tax Reduction (2.0%)

North Carolina continues its aggressive push to become the most business-friendly state in the country by phasing out its corporate income tax entirely by 2030.

• The Cut: On January 1st, the corporate tax rate will drop from 2.25% to 2.0%.
• The Goal: State leaders aim to attract more corporate headquarters and manufacturing facilities to the state, following high-profile arrivals from the tech and automotive sectors in recent years.

3. Adult Website Age Verification (HB 805)

A significant new digital regulation, House Bill 805, takes full effect this January. This law focuses on "Protecting Women and Minors" by mandating strict age verification for websites hosting adult content.

• The Requirement: Any platform where a substantial portion of the content is deemed harmful to minors must utilize a "commercially reasonable" age-verification method to ensure users are 18 or older.
• Consent Rules: The law also requires that every person featured in sexual imagery on such sites provide written consent for each specific act depicted. Failure to comply can result in civil penalties of up to $10,000 per day.

4. Window Tint and Highway Lane Laws (SB 391)

Senate Bill 391, also known as the DOT Omnibus Bill, introduces several changes for North Carolina drivers designed to improve safety and streamline inspections.

• Window Tint: While the law eliminates the requirement to inspect window tint during the annual vehicle safety inspection, it introduces a new safety mandate: drivers with tinted windows must roll them down when approached by a law enforcement officer during a traffic stop.
• Lane Restrictions: Heavy vehicles (those with a GVWR of 26,001 pounds or more) are now legally prohibited from operating in the left-most lane of controlled-access highways with six or more lanes.

5. Expansion of Remote Driver's License Services (SB 245)

To reduce wait times at the DMV, the final provisions of Senate Bill 245 take effect this January, allowing more North Carolinians to handle licensing needs online.

• Teen Drivers: One of the most significant updates allows teen drivers to upgrade from their Level 2 Limited Provisional License to a Level 3 Full Provisional License online, provided they meet the State safety and time requirements.
• REAL ID Transition: The law also streamlines the process for residents to upgrade their standard license to a REAL ID via the State digital portal, further decreasing the need for in-person appointments.

A Note on the Minimum Wage

While many other states are increasing their wage floors this January, North Carolina's minimum wage remains at $7.25 per hour for 2026. Although several bills were introduced in the previous session to raise the rate to $15.00, none passed the General Assembly in time for the new year.