Tax Wage Garnishment or IRS Wage Levy

tax wage garnishmentWage Garnishment is the same thing as a Wage Levy. Wage Garnishment can also be called a Wage Attachment. This is when the State Tax Agency or the IRS is taking control of your personal property to recover back taxes. Garnishment may also come in the form of the tax authorities seizing your part or all of your bank account known as Bank Account Garnishment. Most states and IRS can start by issuing a Notice of Wage Garnishment. Most states can garnish without notice, however, most states usually start with a judgment. This procedure follows with a Writ of Garnishment/Execution to the judgment issuing county court. More paperwork usually follows. Then IRS or State notifies your employer to deduct from your wages.

Federal Wage Garnishment is 25% of disposable income (after-tax dollars) according to the Federal Wage Garnishment Law, Consumer Credit Protection Act's Title 3 (CCPA). States may vary but the CCPA states that if State Garnishment law differs from the CCPA then the lesser of the two must be observed.

Tax Wage Garnishment Laws By State

With most states, if federal exemptions apply, then they apply to the state or supersede the state. Wage Garnishment is also called a Wage Levy. This is s serious consequence of back taxes. If you have not taken advantage of your ONE free tax debt consultation, our debt specialists can help with Wage Garnishment and we usually can obtain a temporary freeze.

Alabama: Up to 25% disposable earnings can be garnished unless federal law applies and allows for a smaller percentage.

Alaska: Alaska has a few exemptions but the norm is: 402.50 per week or 25% of weekly income can be garnished (whichever is less). Federal law is applicable if it allows for better exemptions. Some Exemptions to note: If the head of household is the only one that earns income than the exemption is 602.50 per week - Home Owner can retain $54,000 in equity if primary home -Federal Entitlements are also exempt.

Arizona: The larger of the two is considered with Arizona Wage Garnishment: 25% disposable earnings can be garnished or 30 times the federal minimum hourly wage. Whichever is less. Back Account Garnishment can also be a next step by tax authorities.

Arkansas: Federal law offers better exemptions with Arkansas Wage Garnishment. Therefore, 25% of disposable earnings are usually garnished. Your employer will be notified, and the State Revenue agency will try to contact you.

California:
The State of California will notify you and your employer regarding a California Wage Levy. Up to 25% disposable earnings can be garnished unless federal law provides better exemptions. A spouse in California becomes liable for the taxes. However, if you feel you are Innocent click here.

Colorado:
Colorado wage levy: Colorado State will contact you and your manager or company. Based on minimum hourly wage which means state or federal minimum wage (the greater sum). PAY PERIOD AMOUNT EXEMPT IS THE GREATER OF: Weekly - 30 x Minimum Hourly Wage or 75% of Disposable Earnings Bi-weekly - 60 x Minimum Hourly Wage or 75% of Disposable Earnings Semi-monthly - 65 x Minimum Hourly Wage or 75% of Disposable Earnings Monthly - 130 x Minimum Hourly Wage or 75% of Disposable Earnings

Connecticut:
The lesser of two below can be garnished in a Connecticut Wage Levy: a) Up to 25% disposable weekly earnings can be garnished. b) Or 40 times the greater minimum wage (CT State or Federal). CT state minimum wage is $7.65 per hour; 40 times the minimum wage is therefore $306.00 per week. Delaware: Delaware local or state government will notify you. Your employer is notified as well. Up to 15% disposable earnings can be garnished. Federal law offers better exemptions so 25% of disposable earnings are usually garnished.

District of Columbia: Same as Federal Law (above).

Florida: There is no Florida State Tax but local property taxes exist. Federal Exemptions apply here and there is an exemption if you are under financial strain and are the head of the household in which you gain a $100 exemption. Employer is notified. Garnishment cannot exceed the lesser of these two: 25% of disposable earnings, or 30 times the federal minimum weekly wage.

Georgia: Georgia local or state government will contact you. Your employer is notified as well. Garnishment cannot exceed the lesser of these two: 25% of disposable earnings, or 30 times the federal minimum weekly wage.

Hawaii: Hawaii Department of Revenue will usually notify you. Employer is notified. Hawaii wage levy exemptions are: 95% of first $100, 90% of second $100, 80% of wages in excess of $200 per month unless federal exemptions are more generous. Federal exemptions are the lesser of the two: 25% of disposable earnings, or 40 times the federal minimum weekly wage. Idaho Employer is notified along with your employer.

Indiana: Wage Garnishment cannot exceed the lesser of these two: 25% of disposable earnings, or 30 times the federal minimum weekly wage. Disposable Earnings is the net amount or dollar amount after taxes.

Illinois Employer is notified. Illinois Wage Garnishment exemptions are: 15% of gross wages, or 45 times the federal minimum weekly wage. Indiana Indiana State or Local government will notify you. Employer is notified also. Indiana wage Garnishment exemptions are 75% of disposable earnings or 30 times the federal minimum weekly wage - whichever provides the greater exemption.

Iowa: Same as Federal Law (above).

Kansas: Same as Federal Law (above).

Kentucky: State or Local government will notify you. Employer is notified also. Kentucky wage Garnishment exemptions are 75% of disposable earnings or 30 times the federal minimum weekly wage - whichever provides the greater exemption.

Louisiana: Louisiana State or Local government will notify you. Employer is notified also. Louisiana wage Garnishment exemptions are 75% of disposable earnings or 30 times the federal minimum weekly wage - whichever provides the greater exemption.

Maine: The Maine Department of Revenue will usually notify you. Employer is notified. Garnishment cannot exceed the lesser of these two: 25% of disposable earnings, or 40 times the federal minimum weekly wage. Disposable Earnings is the net amount or dollar amount after taxes.

Maryland: Maryland Department of Revenue will inform you. Employer is notified. Garnishment cannot exceed the lesser of these two: 25% of disposable earnings, or 30 times the federal minimum hourly wage. Disposable Earnings is the net amount or dollar amount after taxes.

Massachusetts: Massachusetts Department of Revenue will try to contact you regarding a Wage Levy. Employer is notified. Garnishment is 25% of disposable earnings, until back taxes are paid. Disposable Earnings is the net amount or dollar amount after taxes.

Michigan: Michigan Department of Revenue will usually notify you. Employer is notified. Garnishment is 25% of disposable earnings, unless individual makes close to minimum wage. Disposable Earnings is the net amount or dollar amount after taxes.

Minnesota: Minnesota Department of Revenue will usually notify you. Employer is notified. Garnishment cannot exceed the lesser of these two: 25% of disposable earnings, or 40 times the federal minimum hourly wage. Disposable Earnings is the net amount or dollar amount after taxes.

Mississippi: Mississippi Department of Revenue will usually notify you. Employer is notified. Typically, 25% of disposable earnings can be garnished after 30 days (first 30 days wages are completely exempt from wage garnishment order). Therefore, 75% of garnishee's wages are exempt. Typically, 25% of disposable earnings are exempt after 30 days (first 30 days are completely exempt from wage garnishment order).

Missouri: Missouri Department of Revenue will usually notify you. Typically, 25% of disposable earnings or 10% (if head of family) can be garnished or 30 times the federal minimum hourly wage (whichever is less). Nebraska Nebraska rejects federal wage exemptions.

Nevada: No State Tax but local Taxes. Typically, 25% of disposable earnings can be garnished by employer and child support taxes priority over all other levies.

New Hampshire: New Hampshire State Revenue Department will notify you regarding a Wage Levy. Employer is notified. Typically, 50 times the federal minimum hourly wage is exempt.

New Jersey: New Jersey Revenue Department will usually notify you for a wage levy. Employer is notified. Typically, 10% of gross income or 25% of disposable earnings can be garnished (whichever is less). Garnishment is exempt for wages under $154.50 a week.

New Mexico: New Mexico Department of Revenue will usually notify you. Employer is notified. Typically, 25% of disposable earnings can be garnished by employer until back taxes are paid in full. Therefore, 75% of garnishee's wages are exempt. Exemptions can apply if garnishee can show reasonable financial strain. Disposable Earnings is the net amount or dollar amount after taxes.

New York: New York Department of Revenue will usually notify you. Employer is notified. Typically, 10% of gross income can be garnished or if federal law offers more generous exemptions then it applies. Additional Exemptions can apply if garnishee can show reasonable financial strain.

North Carolina: North Carolina Department of Revenue will usually notify you. Employer is notified. Typically, 25% of disposable earnings can be garnished. Therefore, 75% of garnishee's wages are exempt. Exemptions can apply if garnishee can show reasonable financial struggles. Moreover, any earnings 60 days before garnishment are exempt if necessary for family support.

North Dakota: North Dakota Department of Revenue will notify you. Employer is notified. Typically, 25% of disposable earnings can be garnished or 40 times the federal minimum hourly wage. Disposable Earnings is the net amount or dollar amount after taxes Therefore, 75% of garnishee's wages are exempt. Exemptions can apply if garnishee can show reasonable financial strain. Moreover, each dependent allots for an additional $20 exemption.

Ohio: Ohio State Revenue Department will usually notify you at least 15 before garnishing your wages. Your employer is notified. Wages will be garnished until back taxes are paid in full. Typically, 25% of disposable earnings after withholding taxes and social security are deducted.

Oklahoma: Oklahoma Department of Revenue will notify you. Employer is notified. Garnishment cannot exceed the lesser of these two: 25% of disposable earnings, or 40 times the federal minimum hourly wage. Therefore, 75% of garnishee's wages are exempt. Exemptions apply if garnishee can show reasonable financial strain.

Oregon: Oregon Department of Revenue will notify you. Employer is notified. Garnishment cannot exceed the lesser of these two: 25% of disposable earnings, or 40 times the federal minimum hourly wage.

Pennsylvania: The Pennsylvania Department of Revenue can garnish without a court order for unpaid taxes. Employer is notified. Typically, 25% of disposable earnings after withholding taxes and social security are deducted. Employer can retain up a small percentage to compensate for costs of additional bookkeeping.

Rhode Island: Rhode Island Department of Revenue will notify you. Employer is notified. Typically, 25% of disposable earnings can be garnished after withholding taxes and social security is deducted.

South Carolina: Wages cannot be garnished or it is prohibited. Other levies can be utilized though.

South Dakota: South Dakota has no State Tax but local taxes. Employer is notified. 20% of disposable earnings after withholding taxes and social security are deducted. Typical garnishment period is 60 days, and at the end of term new garnishment levies can be applied or the previous can be renewed. Exemptions apply if garnishee can show reasonable financial strain in terms of meeting necessary needs for food, shelter, medical and clothing. Welfare, Social Security is exempt.

Tennessee: Tennessee Department of Revenue will notify you. Employer is notified. Exemptions apply if garnishee can show reasonable financial strain by filing a "slow pay" motion. Typically, 25% of disposable earnings can be garnished after withholding taxes and social security is deducted but no provision exists as this is left up to the judge.

Texas: No state tax plus wages cannot be garnished or it is prohibited except for child support. However, income that is not a wage related can be garnished or seized. Bank accounts (see link) and royalties can be seized. However, certain entitlements like Social Security are exempt.

Utah: Utah Department of Revenue. Employer is notified and garnishment is valid for 120 days. During 120 days, 25% of disposable earnings can be garnished after withholding taxes and social security is deducted. Disposable Earnings is the net amount or dollar amount after taxes, social security, and Medicaid is deducted. Wage garnishment can be brought back with another court order if back taxes are not paid.

Vermont: Vermont Department of Revenue notifies you via mail. Employer is notified. 25% of disposable earnings can be garnished after withholding taxes and social security is deducted. Disposable Earnings is the net amount or dollar amount after taxes, social security, and Medicaid is deducted. In other words, disposable earnings is usually the after tax sum. Exemptions apply if garnishee can show reasonable financial strain. The wage garnishment is not released until back taxes are paid in full or employee becomes terminated.

Virginia: Virginia Department of Revenue notifies you via mail. Employer is notified. Virginia solely relies on the federal minimum wage exemptions. A court order of garnishment cannot exceed the lesser of these two: 25% of disposable earnings, or 30 times the federal minimum hourly wage. Disposable Earnings is the net amount or dollar amount after taxes, social security, and Medicaid is deducted.

Washington: No state tax but local taxes. Washington parallels the federal wage garnishment or wage levy exemptions. A court order of garnishment cannot exceed the lesser of these two: 25% of disposable earnings, or 30 times the federal minimum hourly wage.

West Virginia: West Virginia Department of Revenue will notify you via mail with a WV Wage Levy. Employer is notified that you owe back taxes and garnishment is permitted through use of an execution issued by the clerk. Garnishment can not exceed 30 times the federal minimum wage net earnings.

Wisconsin: Wisconsin State Revenue Department will usually notify you concerning Wage Garnishment. Employer is notified. 20% of disposable earnings after withholding taxes and social security are deducted. Exemptions apply if garnishee can show reasonable financial strain. Typical garnishment period is 13 weeks, and at the end of term new garnishment levies can be applied or the previous can be extended.

Wyoming: Wyoming law also states that garnishment may stay active until the writ is dismissed or tax wages are collected. Wyoming No State Tax. Employer is notified. A court order of garnishment applies to the lesser of these two: 25% of disposable earnings, or 30 times the federal minimum hourly wage. Wyoming law also states that garnishment may stay active until the writ is dismissed or tax wages are collected. Disposable Earnings is the net amount or dollar amount after taxes, social security, and Medicaid is deducted.