Wage garnishment is a legal order that requires your employer to withhold part of your paycheck and send it to someone you owe, such as a creditor, a child support agency or the government. For most ordinary debts, federal law caps the amount at 25% of your disposable earnings, and some states set tighter limits.
This guide explains how a garnishment starts, how "disposable earnings" are figured, the main federal limits, and what a garnishment looks like on a real 2026 paycheck.
How a wage garnishment starts
For most private debts, such as credit cards, medical bills or personal loans, a creditor has to sue you and win a court judgment before it can garnish your wages. The court then issues an order, and your employer is legally required to follow it.
Some debts can lead to garnishment without a court lawsuit:
- Child support and alimony: state agencies issue income withholding orders, often as soon as support is ordered.
- Federal student loans in default: the government can use administrative wage garnishment after giving notice.
- Federal and state taxes: the IRS and state tax agencies can levy wages after sending required notices.
You should get notice before an ordinary garnishment begins, along with information about how to challenge it or claim exemptions. Don't ignore court papers or notices about a debt; deadlines to respond are often short.
What "disposable earnings" means
Garnishment limits are based on your disposable earnings, not your gross pay or your take-home pay. Disposable earnings are what's left after deductions that are required by law:
- Federal, state and local income tax
- Social Security and Medicare
- State-mandated payroll contributions, such as unemployment or disability insurance where employees pay them
Voluntary deductions are not subtracted. That includes 401(k) contributions, health insurance premiums, union dues and charitable giving. So a garnishment can take a bigger share of your take-home pay than the headline percentage suggests.
Federal wage garnishment limits
Title III of the Consumer Credit Protection Act sets the federal limits. States can protect more of your pay, but not less.
| Type of debt | General federal limit |
|---|---|
| Ordinary debts (credit cards, medical bills, personal loans) | The lesser of 25% of disposable earnings, or the amount by which weekly disposable earnings exceed 30 times the federal minimum hourly wage |
| Child support and alimony | Up to 50% if you support another spouse or child, up to 60% if you don't; 5% more if payments are over 12 weeks behind |
| Defaulted federal student loans | Up to 15% of disposable earnings |
| Federal tax levies | Different rules: a portion of pay is exempt based on your filing status and dependents |
| Bankruptcy court orders and state tax debts | Not subject to the federal percentage caps |
The "30 times the minimum wage" test protects very low earners: if your disposable pay is close to that floor, little or nothing can be garnished for an ordinary debt. Multiple garnishments generally can't push the total for ordinary debts past the federal limit, and support orders usually take priority.
Federal law also bars your employer from firing you because your wages are garnished for any one debt. That protection doesn't extend to garnishments for two or more separate debts.
Worked example: a wage garnishment on an Iowa paycheck
A single filer in Iowa earns $52,000 a year, paid biweekly ($2,000.00 per paycheck). A creditor gets a judgment and an order to garnish the maximum allowed for an ordinary debt. Paycheck figures come from the PaycheckHubs paycheck calculator and are 2026 estimates.
With no voluntary deductions
| Per biweekly paycheck | Amount |
|---|---|
| Gross pay | $2,000.00 |
| Federal income tax | $156.15 |
| Social Security | $124.00 |
| Medicare | $29.00 |
| Iowa income tax | $50.93 |
| Disposable earnings | $1,639.92 |
| Garnishment (25%) | $409.98 |
| Take-home pay after garnishment | $1,229.94 |
At this pay level, disposable earnings are well above the low-income floor, so the 25% cap is the lower of the two federal tests.
With a 401(k) and health insurance
Now say the same worker contributes 4% to a 401(k) ($80.00) and pays a $90.00 pre-tax health premium. Those deductions lower her taxes to $326.34, so her disposable earnings are $2,000.00 minus $326.34, or $1,673.66. The garnishment becomes about $418.42, because voluntary deductions aren't subtracted.
Her take-home pay before the garnishment is $1,503.66, so after it she keeps about $1,085.24. The garnishment takes about 28% of her normal take-home pay, even though the legal cap is 25% of disposable earnings. This example doesn't include any Iowa school district surtax. Workers in other states can start from the state calculator directory or the Iowa paycheck calculator.
What you can do
- Read the order. It should name the creditor, the amount owed and how to respond.
- Check for exemptions. Some income, such as Social Security benefits, has special protection from many creditors, and state law may protect more of your wages. A few states limit garnishment for consumer debts much more strictly than federal law.
- Contact the creditor. A payment plan or settlement can sometimes end or prevent a garnishment.
- Get help. Legal aid organizations and nonprofit credit counselors can explain your options. The Consumer Financial Protection Bureau has free guides on debt collection.
- Check your pay stub. Make sure the amount withheld matches the order and the legal limits. Our guides on how to read your pay stub and fixing paycheck errors can help you spot problems.
A garnishment ends when the debt is paid, the order is released, or a court changes it. If it continues after that, contact your payroll department with the release paperwork. Planning around a smaller check is easier with a budget built on actual take-home pay; see how to budget on take-home pay.
Frequently Asked Questions
How much of my paycheck can be garnished?
For ordinary debts, federal law generally allows up to 25% of disposable earnings, less for low earners. Child support can take 50% to 65%, and defaulted federal student loans up to 15%.
Can my employer fire me over a wage garnishment?
Not for a garnishment for one debt. Federal law protects you in that case, but the protection doesn't cover garnishments for multiple debts.
Does a 401(k) contribution reduce the amount garnished?
No. Garnishment limits are based on disposable earnings, which only subtract deductions required by law. Voluntary deductions like 401(k) contributions and health premiums don't lower the garnishment.
Is a wage garnishment the same as a tax levy?
They work similarly on your paycheck, but an IRS levy follows its own rules and doesn't need a court order. The amount exempt from an IRS levy depends on your filing status and dependents.
Sources
- Consumer Financial Protection Bureau
- IRS Publication 15, Employer's Tax Guide
- IRS Topic 751, Social Security and Medicare Withholding Rates
Run the numbers for your state
Written and checked against IRS, Social Security Administration and state tax agency publications for the 2026 tax year. General information, not tax, legal or financial advice. Read our editorial policy, calculation methodology and sources.