A wage garnishment is a legal order that allows a portion of your paycheck to be withheld to repay a debtand when it comes to unpaid taxes, the IRS has some of the broadest powers of all.
While most creditors must sue you and win a court judgment before garnishing wages, the IRS can bypass court approval entirely and initiate a wage levy if you owe back taxes.
But how much can be taken from your paycheck, and what rights do you have? That depends on both federal protections and your state’s specific garnishment laws. While federal law sets the baseline, many states impose stricter limits on how much income can be garnished or offer exemptions that help protect low-income earners.
In this guide, we’ll break down how IRS wage garnishment works, how state laws affect garnishment limits, and what steps you can take to stop or reduce garnishment.
If the IRS is threatening to garnish your wages, understanding your rights by state could make all the difference.
Federal wage garnishment rules for non-tax, non-alimony, and non-child support debts are based on disposable earnings, which include any “compensation paid or payable for personal services”, minus state and federal taxes, social security and Medicare taxes, State Unemployment Insurance tax, and any amounts withheld for required employee retirement systems.
While many of us understand disposable income to be wages minus taxes and living expenses, living expenses are not calculated when determining wage garnishment.
Instead, federal wage garnishment law limits the total garnishment to the lesser of:
When examining wage garnishment laws by state, there are a few things to note. Any states not explicitly listed below follow the federal rules for wage garnishment limits.
Note that there may be individual exceptions for child support, spousal support, alimony, unpaid taxes, and student loan debts. Child support liability, for example, can usually be more aggressively pursued than other debts. Refer to your state’s website for more information.
Alaska imposes several additional exemptions to wage garnishment laws, as per the Alaska Exemptions Act.
The wage garnishment limits in D.C. are the lesser of 25 percent of a person’s disposable earnings, or disposable earnings minus 40 times the state’s hourly minimum wage. Exemptions are slated to rise every year based on the state’s cost of living.
Iowa follows federal rules for wage garnishment limits but imposes an extra limit on how much can be garnished from an individual’s wages within a calendar year based on their annual income. For example, an individual with an annual income between $16,000 and $23,999 can only be made to give up a total of $800 in garnished wages over the entire year. Anyone earning $50,000 or more can only be levied for 10 percent of their annual income.
Minnesota follows federal exemption limits but ups the exemption to the lesser of 25 percent of an individual’s disposable earnings, or disposable earnings minus 40 times the federal minimum wage.
Wage garnishment limits in Arkansas follow federal law, but laborers and mechanics have have additional protections.
Maine’s wage garnishment limits follow federal law, except that the greater of either 40 times the federal minimum wage or the state minimum wage is chosen when calculating exemptions.
Mississippi follows federal exemption limits but prevents creditors from garnishing any wages within the first 30 days after a garnishment order is served.
Wage garnishment limits in California follow federal law, but garnishment is calculated as the lesser of either 25 percent of a person’s disposable earnings, or disposable earnings minus 40 times California’s hourly minimum wage.
Illinois’ wage garnishment limits are very strict and are limited to the lesser of 15 percent of a person’s gross wages, or disposable earnings minus 45 times Illinois’ minimum wage.
Maryland wage garnishment laws differ from county to county. It’s best to contact a local legal professional for more information or refer to your county’s offices for help.
Missouri follows federal exemption limits but adds greater protections to the head of the household, limiting wage garnishment to the lesser of 10 percent of one’s disposable earnings, or disposable earnings minus 30 times the federal minimum wage.
Wage garnishment laws in Connecticut are strict. Garnishments are limited to the lesser of either 25 percent of a person’s disposable earnings, or disposable earnings minus 40 times the federal hourly minimum wage/Connecticut’s minimum fair wage (whichever is greater).
Illinois’ wage garnishment limits are very strict and are limited to the lesser of 15 percent of a person’s gross wages, or disposable earnings minus 45 times Illinois’ minimum wage.
Maryland wage garnishment laws differ from county to county. It’s best to contact a local legal professional for more information or refer to your county’s offices for help.
North Carolina limits wage garnishment to 10 percent of gross wages.
Pennsylvania: Wages in Pennsylvania can only be garnished for certain types of local taxes, student loan defaults, restitutions in criminal cases, child/spousal support, back rent, and divorce distribution
wage garnishments in New Hampshire are not continuous and are limited to the lesser of 25 percent of one’s disposable earnings, or disposable earnings minus 50 times the federal hourly minimum wage. If a creditor wants to claim more than two weeks of wages, they must keep going back to court.
Indiana follows federal rules for wage garnishment laws, but gives individuals the right to argue for a reduction to 10 percent of their disposable earnings in the first payment.
Massachusetts limits wage garnishments to the lesser of 15 percent of an individual’s gross wages, or disposable earnings minus 50 times the federal/state minimum wage (whichever is greater).
Nevada increases wage garnishment limits to the lesser of 25 percent of one’s disposable earnings, or disposable earnings minus 50 times the federal hourly minimum wage.
South Carolina features different restrictions depending on the type of debt, and has completely outlawed wage garnishments for consumer debts.
Virginia limits wage garnishment to the lesser of 25 percent of a person’s disposable earnings, or disposable earnings minus 40 times the federal hourly minimum wage.
Wisconsin has limited wage garnishment to the lesser of 20 percent of a person’s disposable earnings, or disposable earnings minus 30 times the federal hourly minimum wage.
New York’s wage garnishment limits are the lesser of 10 percent of one’s gross wages or 25 percent of one’s disposable earnings. If the disposable earnings are less than 30 times NY’s minimum wage, the individual’s wages cannot be garnished.
Washington limits wage garnishment to the lesser of 25 percent of a person’s disposable earnings, or disposable earnings minus 35 times the federal hourly minimum wage. Exceptions are made for child support, where more can be garnished.
Texas only allows wage garnishments for income tax debt, alimony, child support, and defaulted student loans.
New Mexico increases wage garnishment limits to the lesser of 25 percent of one’s disposable earnings, or disposable earnings minus 40 times the federal hourly minimum wage.
West Virginia has limited wage garnishment to the lesser of 20 percent of a person’s disposable earnings, or disposable earnings minus 30 times the federal hourly minimum wage.
New Jersey’s wage garnishment limits include up to 10 percent of disposable earnings if an individual earns no more than 250 percent of the federal poverty level for their household, or 25 percent for anyone earning more.
South Dakota limits wage garnishment to the lesser of 20 percent of your disposable earnings minus $25 per dependent, or disposable earnings minus 40 times the federal hourly minimum wage, and an additional $25 deduction per dependent.
It’s important to note that any wage levies by the IRS are handled separately from other wage garnishment orders. Instead, the IRS claims wage levies when taxpayers have a significant amount of unpaid taxes and refuse to pay or negotiate a payment plan.
The IRS can levy wages for as long as they must in order to satisfy the debt and can claim a sizeable cut of a person’s wages based on their total number of dependents.
The IRS requests employers to withhold pay based on Publication 1494. Employers must give their employees a Statement of Dependents and Filing Status, which they must fill out and return within three days. There are no state-to-state differences for wage levies for unpaid taxes to the federal government.
On the other hand, there may be different wage garnishment rules for unpaid state taxes. Refer to your local government’s revenue service or visit a local tax professional for more information.
