The key definition
What counts as "disposable earnings" for garnishment?
This is the single most misunderstood concept in wage garnishment. Disposable earnings are NOT your net (take-home) pay. They are your gross pay minus only the deductions that are legally required. Here is exactly what is and is not subtracted:
| Deduction | Subtracted from gross? | Why |
|---|---|---|
| Federal income tax withholding | Yes | Legally required |
| State & local income tax | Yes | Legally required |
| Social Security (OASDI) | Yes | Legally required |
| Medicare | Yes | Legally required |
| State disability insurance (SDI) | Yes | Legally required where mandated |
| Health insurance premiums | No | Voluntary, even if employer-sponsored |
| 401(k) / 403(b) contributions | No | Voluntary retirement savings |
| Union dues | No | Voluntary (even if required by union contract) |
| Life / dental / vision insurance | No | Voluntary |
| HSA / FSA contributions | No | Voluntary |
This means your disposable earnings are significantly higher than your take-home pay. If your gross biweekly pay is $3,000, your take-home might be $2,200 after all deductions, but your disposable earnings for garnishment purposes might be $2,500 (gross minus only taxes and FICA). The garnishment percentage is applied to the higher number, not your take-home.
The CCPA formula
How the federal garnishment cap works
The CCPA (Title III, 15 U.S.C. §1673) limits how much a creditor can take by applying a two-part test. The maximum garnishment for ordinary commercial debts is the lesser of:
- 25% of your disposable earnings for the pay period, OR
- The amount by which your disposable earnings exceed 30 times the federal minimum wage ($7.25/hour × 30 = $217.50/week).
Whichever amount is smaller is the most that can be garnished. If your weekly disposable earnings are $217.50 or less, no garnishment is allowed at all — you keep everything. Between $217.50 and $290.00, only the amount above $217.50 can be taken (which is less than 25%). Above $290.00, the 25% cap kicks in because it produces the smaller number.
Special garnishment rules: child support, student loans, and taxes
The CCPA's 25% limit applies to ordinary commercial debts (credit cards, medical bills, personal loans). Other types of debt have higher limits:
| Debt type | Maximum garnishment | Authority |
|---|---|---|
| Ordinary debt (CCPA) | 25% of disposable earnings | 15 U.S.C. §1673 |
| Child support (current + arrears) | 50-65% of disposable earnings | 15 U.S.C. §1673(b) |
| Federal student loans (DOE) | 15% of disposable earnings | 20 U.S.C. §1095a |
| Federal tax debt (IRS levy) | Varies — IRS tables determine exempt amount | IRC §6334 |
Child support garnishment can take up to 50% of disposable earnings if you are supporting another spouse or child, or 60% if you are not. If you are more than 12 weeks behind, add another 5% (up to 55% or 65%). These are the highest garnishment rates allowed under federal law.
States with stronger protections than federal law
The CCPA sets the floor — states can offer more protection but cannot allow more garnishment than the federal limit. Several states go significantly further. Here are notable examples:
| State | Consumer debt garnishment rule | Key detail |
|---|---|---|
| Texas | Prohibited for most consumer debts | Only child support, taxes, and student loans can be garnished |
| Pennsylvania | Prohibited for most consumer debts | Domestic support, taxes, student loans, and landlord-tenant are exceptions |
| North Carolina | Prohibited for most consumer debts | Child support and tax debts remain garnishable |
| South Carolina | Prohibited for most consumer debts | Same exceptions as NC |
| New York | 10% of gross OR 25% of disposable minus 30× state min wage | Whichever is less — substantially more protective |
| Florida | Head-of-household exempt if under $750/week | Must file head-of-household claim; applies to consumer debts only |
| California | 25% of disposable OR disposable minus 40× state min wage | State min wage is higher than federal, providing extra protection |
This table covers selected state examples only. Child support, federal tax levies, and federal student loan garnishments override most state protections. Always verify your rights with your state labor department. For estimating how much take-home pay remains after garnishment, use our wage garnishment calculator.
Employment protection: your employer cannot fire you for one garnishment
The CCPA includes an anti-retaliation provision (15 U.S.C. §1674): your employer cannot terminate you because your wages are being garnished for a single debt. Violating this provision is a federal offense. However, this protection has a critical limitation: it does not extend to a second or subsequent garnishment. If garnishment orders arrive from two different creditors, the CCPA's employment protection no longer applies. Some states extend broader protection — for example, prohibiting termination for any number of garnishments — so check your state law.
How multiple garnishments work
If you have multiple garnishments, the CCPA's limit still applies to the total amount garnished, not each individual garnishment separately. If you already have a child support garnishment taking 50%, a subsequent commercial creditor generally cannot garnish additional wages because the total would exceed federal limits. However, the priority order matters — child support typically takes priority over commercial debts.
The general priority order when multiple garnishment orders arrive at your employer is: (1) child support and alimony withholding orders, (2) federal tax levies, (3) federal student loan garnishments, (4) state tax levies, (5) commercial judgment garnishments. When two garnishments of the same priority level compete, the one served on the employer first usually takes precedence. Your employer is legally responsible for following the correct garnishment order and limits. If you believe too much is being withheld, contact your state labor department or a legal aid organization.
What to do if you are facing garnishment
- Verify the garnishment is valid. You have a right to receive notice before garnishment begins. For most debts, the creditor must obtain a court judgment first.
- Check whether you qualify for exemptions. If your income is at or near minimum wage, you may be fully exempt. Some states offer additional exemptions for heads of household or low-income workers.
- Challenge the garnishment if applicable. You can file a claim of exemption with the court, particularly if the garnishment would cause undue hardship.
- Calculate the correct amount. Use disposable earnings (not gross) and the lesser-of formula. If your employer is taking too much, notify them in writing.
- Consider debt resolution options. Negotiating with creditors, enrolling in a payment plan, or consulting a nonprofit credit counselor may reduce or eliminate the garnishment.
For related paycheck topics, see our salary after taxes calculator and payroll mechanics guide.
Questions
Wage garnishment FAQ
What is the maximum percentage that can be garnished from wages?
For ordinary consumer debts, the federal CCPA limits garnishment to the lesser of 25% of disposable earnings or the amount exceeding 30 times the federal minimum wage per week. Child support can take 50-65%, and federal student loan garnishment is capped at 15%.
What are disposable earnings for garnishment purposes?
Disposable earnings are your gross pay minus legally required deductions: federal income tax, state income tax, local taxes, Social Security, and Medicare. Voluntary deductions like 401(k) contributions, health insurance premiums, and union dues are generally not subtracted when calculating disposable earnings for garnishment.
Can minimum wage workers be garnished?
If your weekly disposable earnings are $217.50 or less (30 times the federal minimum wage of $7.25), no garnishment is allowed for consumer debts under federal law. If your state has a higher minimum wage, state law may provide even greater protection.
Can my employer fire me for a wage garnishment?
Under the CCPA, your employer cannot fire you for a single wage garnishment. However, this protection does not extend to two or more separate garnishments. Some states provide broader protection. If you are terminated because of a garnishment, you may have a legal claim.
Do states have different garnishment limits?
Yes. Several states (Texas, South Carolina, Pennsylvania, North Carolina) prohibit most consumer debt garnishments entirely. Others like New York and Florida set lower limits than the federal 25% cap. State law always applies when it is more protective than federal law.
- Sources: Consumer Credit Protection Act (15 U.S.C. §1673) · U.S. DOL Wage Garnishment fact sheet.
- 🔄 Last updated July 31, 2026 · Tax year 2026
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