Wage Garnishment: How Much Can Be Taken?
Wage garnishment lets a creditor collect a debt directly from your paycheck. Federal law caps the amount; some states cap it lower. Here's how it works.
Wage garnishment is a court-ordered deduction from your paycheck that goes directly to a creditor. Common sources include unpaid debts, child support, back taxes, and student loan defaults. Federal law sets a ceiling; some states set lower caps.
Federal limits under the CCPA
The Consumer Credit Protection Act (CCPA) limits garnishment for ordinary debts (credit cards, medical bills, most civil judgments) to the lesser of: (1) 25% of disposable earnings, or (2) the amount by which disposable earnings exceed 30 times the federal minimum wage ($7.25 × 30 = $217.50/week). Disposable earnings means gross pay minus legally required deductions like FICA and state taxes.
Child support and spousal maintenance
Garnishments for child support or alimony have higher limits: up to 50% of disposable earnings if you are supporting another spouse or child, and up to 60% if you are not. An additional 5% may be withheld if payments are more than 12 weeks in arrears.
State rules can be stricter
Many states set caps lower than federal law. Texas, for example, exempts wages from most garnishments entirely (other than child support, student loans, and taxes). Pennsylvania, South Carolina, and North Carolina similarly restrict wage garnishment. In these states, creditors typically pursue garnishment of bank accounts instead.