Beginning on Friday the state will limit private gatherings to ten people and bars, restaurants and gyms will have to close at 10pm.
The new measures were announced by New York governor Andrew Cuomo on Wednesday and matches similar restrictions in neighbouring New Jersey.
Virus figures across the US have spiked in recent weeks and on Tuesday a new record high of 61,964 hospitalisations was reached, according to the Covid Tracking Project.
“We’re seeing a national and global Covid surge. And New York is a ship on the Covid tide,” said Mr Cuomo on a conference call.
“Today, we’ve seen the country set a new record in terms of Covid cases. It is really getting much, much worse by the day.”
Mr Cuomo then urged New Yorkers to “do their part” to help the state cope with the virus.
“COVID is getting worse by the day. All around the country. The fall surge is here. We are taking action but we need New Yorkers to do their part,” he wrote on Twitter.
New York City’s mayor Bill de Blasio also took to Twitter to warn residents about the surge of virus.
“This is our LAST chance to stop a second wave. We can do it, but we have to act NOW,” he wrote on Twitter.
More than 10.6 million cases have now been recorded in the US, with more than 246,000 deaths.
The state reported 1,628 hospitalisations on Wednesday, its highest figure since June but still way below April peaks of around 18,000.