Federal and state law limits the amount that can be taken from your paycheck to pay debts.
Judgment creditors—those who've filed a lawsuit against you and won—and creditors with a statutory right to collect back taxes, child support, and student loans can garnish or "take" money directly out of your paycheck. But they can't take it all. Federal and state law limits the amount a creditor can garnish.
To learn how wage garnishments work, see Wage Garnishments: An Overview.
Federal Wage Garnishment Limits for Judgment Creditors
If a judgment creditor is garnishing your wages, federal law provides that it can take no more than:
- 25% of your disposable income, or
- the amount that your income exceeds 30 times the federal minimum wage, whichever is less.
Your disposable income is established by subtracting required deductions from your total paycheck. Required deductions include federal and state taxes, state unemployment insurance taxes, Social Security, and required retirement deductions. They do not include voluntary deductions, such as health and life insurance, charitable donations, savings plans, and more.
EXAMPLE
The current federal minimum hourly wage is $7.25 per hour (as of July 2020). If you make $600 weekly after required deductions, 25% of your disposable income is $150. The amount that your income exceeds 30 times $7.25 is $382.50 ($600 - 217.50). That means the most that can be garnished from your weekly paycheck is $150.
Wage Garnishment Limits for Student Loan Debts
The U.S. Department of Education or anyone collecting on its behalf can garnish up to %15 of your disposable income to collect on defaulted student loans. These agencies do not have to sue you first and get a judgment to garnish, but they must provide you with notice of the garnishment ahead of time.
Wage Garnishment Limits for Child Support or Alimony
Since 1988, all new or modified child support orders include an automatic wage withholding order, even for child support that is not delinquent. The child support is withheld from your paycheck and your employer sends the money directly to the other parent. If you are required to maintain health insurance coverage for your child, the payment for that will also be deducted from your paycheck. You can agree with the other parent to pay child support independently without resorting to wage withholding.
Up to 50% of your disposable earnings can be garnished to pay child support if you are currently supporting a spouse or a child who isn't the subject of the order. If you aren't supporting a spouse or child, up to 60% of your earnings may be taken. An additional 5% can be taken if you are more than 12 weeks in arrears.
Wage Garnishment Limits for Tax Debts
Taxing authorities have different limits for wage garnishment. The IRS bases the amount on how many dependents you have and your standard deduction amount. State taxing authorities have formulas, too. The IRS will send you a notice before it begins to garnish your check, but it does not have to get a judgment first.
State Wage Garnishment Limits
States are free to offer more protection to debtors in wage garnishment actions than the federal government; they cannot provide less. Many states follow federal guidelines, but some protect more of a debtor's wages. For example, in Massachusetts, most judgment creditors can only garnish up to 15% of your wages.
To find the state wage garnishment rules in your state, visit the website of your state Department of Labor. Or check out Nolo's State Wage Garnishment page; it has articles on wage garnishment laws in each of the 50 states.
The Head of Household Exemption and State Wage Garnishments
The head of household exemption is a state law that lets you protect more of your wages. It's available to judgment debtors, who are the family's primary source of financial support. However, not all states have a head of household exemption, and the exempt amounts of disposable income can range from 100% to 90% or be the amount necessary for the care and support of your family.
Claiming a Head of Household Exemption
Keep in mind that receiving the head of household exemption protection isn't automatic in most cases. You'll need to claim the exemption in many states by filing paperwork with the court. You might also need to object to the garnishment. If you don't follow the procedures your state requires, the judgment creditor will likely get more of your wages than the creditor is entitled to receive by law.
As soon as you receive a wage garnishment notice or order, finding out what you need to do to protect your income—especially if you have family members who rely on you is essential. The response time will likely be short and possibly a matter of days.
Carefully reading any paperwork given to you is an excellent place to start. It might explain your options or even include the forms you must respond to. If not, local courts often have instructions posted on a website. Or you can call the sheriff or constable responsible for serving collection actions or the court clerk. Many courts also provide self-help services a few times per week. If you can't find the necessary information, consult a local attorney.
Learn how filing for Chapter 7 bankruptcy will stop a wage garnishment.
