As the new year begins, North Carolina will see a wave of legislative changes affecting everything from health care licensing and taxes to birth certificates, definitions of sex, and professional certification requirements. These laws, passed during the 2025–2026 legislative session, will impact daily life for residents, businesses, and families across the state. 

Here’s a breakdown of the most significant new North Carolina laws going into effect on January 1, 2026 — and what they mean for you.

State Tax Reduction Continues

One of the most immediate changes for taxpayers is a reduction in North Carolina’s income tax rate, which will fall from 4.25% to 3.99% on January 1. This ongoing tax rollback is part of a multi-year plan to make North Carolina more competitive and keep more money in residents’ pockets. 

Healthcare Workforce Reforms

North Carolina is enacting laws designed to expand and modernize the healthcare workforce. These reforms aim to make it easier for medical professionals — including internationally trained physicians and physician assistants (PAs) — to get licensed and practice in the state. The changes are intended to improve access to care, especially in underserved communities. 

Gender Recognition and Protections

A high-profile law taking effect January 1 formally defines only two sexes — male and female — in North Carolina’s legal code. Under this law:

Government policies, regulations, and official definitions must recognize biological sex as either male or female. Gender identity will not be treated as legally equivalent to biological sex under state law. This change also influences policies related to gender-affirming care and school activities. 

This law was passed by the legislature and took effect after an override of the governor’s veto. 

More Accessible Birth Certificates for Adopted People

Under Senate Bill 248, adopted individuals will now have easier access to new birth certificates that do not reference their original adoption status. The updated law allows registers of deeds to issue a certificate that reflects the adoptee’s current familial relationship without revealing sensitive adoption details. 

Workforce Licensing and Professional Certification

Several laws taking effect will impact professional licensing and workforce development, including:

Accounting Workforce Development Act — This law adjusts education and experience requirements for becoming a Certified Public Accountant (CPA), offering alternate paths to certification. Various reforms making licensing more flexible and aligned with modern workforce needs. 

State Investment Modernization

House Bill 506 creates a new structure for managing North Carolina’s state pension investments, shifting decision-making from the State Treasurer to a multi-member investment authority. The goal is to increase returns and modernize long-term fiscal strategies. 

Budget, Technical, and Corporate Changes

Other changes effective January 1 include:

Budget technical corrections to help clarify existing laws and appropriations. Updates to the Business Corporations Act, including provisions for electronic wills and modern corporate procedures. 

What This Means for North Carolinians

These laws collectively signal a shift in policy across taxation, healthcare accessibility, legal definitions, professional licensing, and administrative modernization. Residents should:

Review tax withholding and planning based on the new income tax rate. Understand changes to gender recognition law if participating in school, healthcare, or legal systems. Check professional credential requirements if pursuing licensing changes. Update estate planning documents to reflect changes in the acceptance of electronic wills and certifications.

Stay tuned to DoRaleigh for future updates and analysis of how these changes affect you and your community.

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