For ordinary debts, federal law caps garnishment at the lesser of 25 per cent of disposable earnings or the amount by which weekly disposable earnings exceed thirty times the federal minimum wage — $217.50 at $7.25 an hour. Child support, taxes and federal student loans run under different and higher limits, and several states protect considerably more than federal law does.
The federal formula
Disposable earnings means pay after legally required deductions, not after your rent. The cap is the lesser of two numbers: a quarter of that figure, or whatever exceeds thirty times the federal minimum wage for the week.
The second half is the important one. It means someone earning $217.50 or less a week in disposable earnings can have nothing garnished at all for an ordinary debt, however large the judgement.
The higher-limit categories
Child and spousal support. Up to 50 per cent where you support another family, up to 60 per cent where you do not, with a further 5 per cent for arrears over twelve weeks.
Federal student loans. Administrative garnishment without a court judgement, at a lower percentage than a court order but without the usual court step.
Federal tax levies. A different calculation entirely, based on exempt amounts by filing status rather than a percentage.
States frequently protect more
Several states prohibit wage garnishment for most consumer debts altogether, and others set lower percentages or higher protected floors. Where state law protects more, it applies.
You cannot be fired for one
Federal law prohibits dismissal because earnings are garnished for any one debt. That protection does not extend to a second or subsequent garnishment, and some states protect further.
If a garnishment appears
Check that the arithmetic matches the formula, that the underlying judgement is real, and whether your state exempts the debt type entirely. Errors here are common because payroll systems apply a generic percentage rather than the two-part test.
Common questions
How much can be garnished?
For ordinary debts, the lesser of 25 per cent of disposable earnings or the amount above thirty times the federal minimum wage — $217.50 a week.
What if I earn very little?
Below $217.50 a week in disposable earnings, nothing can be garnished for an ordinary debt however large the judgement.
Are support orders different?
Yes. Up to 50 or 60 per cent depending on whether you support another family, with a further 5 per cent for long arrears.
Can I be fired for a garnishment?
Not for one. Federal law prohibits dismissal because earnings are garnished for a single debt, though not automatically for a second.
Do states protect more?
Several prohibit garnishment for most consumer debts entirely or set lower limits. Where state law protects more, it applies.