The correct way to ask this question is "How do you celebrate New Year's?" (to say New year's is short for "New Year's Eve") Here is America it is common to attend a party thrown by a friend of yours, where other friends gather also, and you drink, eat, talk, and maybe dance until midnight, when most likely you watch on TV as the ball in Times Square, New York drops down to mark the beginning of the new year. :)

In Ireland pretty much the same as Andrew, usually a party or go out for the night drinking and have a countdown before midnight resulting in cheering/kissing and return to partying after :).