IRS Wage Garnishment: How Much Can They Take and How to Stop It

Key Takeaways

• The IRS does not cap wage garnishment at a percentage. It takes everything above a small “exempt amount” set by IRS Publication 1494, updated annually.
• For a single filer with no dependents paid weekly, only about $309.62 per week is protected in the current tax year.
• You have 30 days from a Final Notice of Intent to Levy to act. Missing this window significantly limits your options.
• Installment Agreements, Offers in Compromise, CDP hearings, and Currently Not Collectible status can all stop garnishment.
• All overdue tax returns must be filed before the IRS will consider most resolution options.
• A tax attorney can often secure a garnishment release within 48 hours when action is taken promptly.

Opening a pay stub to find a fraction of your expected take-home pay is often the moment people realize the IRS plays by fundamentally different rules than most creditors. No court order required. No percentage cap on what can be taken. Just a direct line into your paycheck until the debt is resolved.

Understanding how this works, and what options exist to stop it, is the first step to getting your income back.

What Is an IRS Wage Garnishment?

The IRS calls this a “wage levy,” not a garnishment, though the practical effect is the same. Under Internal Revenue Code Section 6331, the IRS has the authority to levy on all non-exempt property, wages included, to collect unpaid tax debt. Once Form 668-W is sent to your employer, your employer is legally required to comply every pay period. The garnishment is continuous, meaning it does not stop after one paycheck. It keeps running until the debt is resolved or the IRS formally releases the levy.

How Much Can the IRS Take?

This is where most people are caught off guard. Private creditors who garnish wages under the Consumer Credit Protection Act are generally limited to 25% of disposable earnings. The IRS has no such cap.

Instead of limiting what it can take, the IRS determines how much it must leave you. That protected figure is called the “exempt amount,” and it is calculated using IRS Publication 1494 based on your filing status, number of dependents, and pay frequency. Everything above that amount can be seized.

Per the current Publication 1494, here are representative weekly exempt amounts:

• Single, 0 dependents: approximately $309.62 per week protected
• Single, 3 dependents: approximately $615.38 per week protected
• Married filing jointly, 2 dependents (biweekly): approximately $1,646.16 per pay period protected

A single person earning $1,200 per week in take-home pay walks away with about $309.62. The IRS takes the rest. For anyone living in a high-cost metro area, that is not enough to cover rent.

One critical detail: when your employer receives the garnishment notice, they give you Form 668-W and Publication 1494 to complete within three days. If you miss that deadline, your exempt amount is calculated as if you are single with no dependents, regardless of your actual situation. That can cost hundreds of dollars per paycheck compared to your proper exemption.

If you have multiple jobs, the IRS can take the entire paycheck from a second job if your first paycheck already covers your exempt amount. Bonuses and commissions received in a pay period where your exempt amount is already accounted for can also be taken in full.

The Process: What the IRS Must Do First

The IRS cannot begin garnishing without following a specific notice sequence. First comes an assessment of the tax debt, followed by a Notice and Demand for Payment (10-day deadline to pay in full), and eventually the Final Notice of Intent to Levy, which is Letter LT11 or Letter 1058.

That final notice triggers a 30-day window and must include information about your right to a Collection Due Process (CDP) hearing. Requesting a CDP hearing within that window legally pauses collection activity while your case is reviewed by an independent officer in the IRS Office of Appeals. Missing the 30-day deadline does not eliminate all options, but it eliminates the most powerful ones.

Notices are frequently missed because they were sent to an outdated address. Keeping your address current with the IRS through Form 8822 is a small step that can preserve critical legal rights.

How to Stop IRS Wage Garnishment

Several paths can stop or release a garnishment. Being current on all required tax filings is a prerequisite for nearly all of them. Paying the balance in full results in an immediate levy release, though most people facing garnishment cannot do that.

Request an Installment Agreement. A payment plan that spreads your tax debt over monthly payments. Once approved and current on filings, the IRS is required to release the wage levy. Streamlined agreements are available for balances under $50,000.

File a CDP Hearing Request. Using Form 12153 within 30 days of the Final Notice halts the garnishment while an independent Appeals Officer reviews your case. You can propose alternative resolutions or challenge the liability at this hearing.

Apply for an Offer in Compromise. For taxpayers who genuinely cannot pay the full amount, an OIC allows settling the debt for less based on ability to pay. The IRS generally suspends garnishment while an OIC is pending, though approval typically takes several months.

Request Currently Not Collectible Status. If the levy prevents you from meeting basic living expenses, submitting Form 433-F or Form 433-A showing zero disposable income can result in CNC status, pausing collection while interest and penalties continue to accrue. The status is reviewed periodically.

When Professional Help Makes a Real Difference

Calling the IRS directly can work for the simplest cases. But wage garnishment resolution involves strict deadlines, specific forms filed to specific addresses, and financial documentation in formats the IRS expects. A missed detail, a wrong address, or an expired deadline can eliminate legal options that would otherwise be available.

Tax firms with dedicated IRS collection experience handle these cases daily and can often move faster than a taxpayer acting alone. J. David Tax Law is an A+ BBB-accredited firm with more than four decades of collective experience handling IRS and state tax collection matters for clients in all 50 states. J. David Tax Law has reported securing garnishment releases within 48 hours in some cases and has helped clients save over $800 million through settlements and resolution programs. Every client works directly with a licensed tax attorney from the start.

California Taxpayers: A More Complex Picture

Wage garnishment gets more complicated in California because the state Franchise Tax Board (FTB) has its own independent levy authority. Federal and state garnishments can run simultaneously, leaving a taxpayer with almost nothing from each paycheck while dealing with two separate agencies under two separate rule sets. Firms like J. David Tax Law that handle both levels of collection in the same case offer a practical advantage in this situation.

For Bay Area residents, working with a San Francisco tax attorney who handles both IRS and FTB enforcement can significantly streamline the process. J. David Tax Law maintains a local office in San Francisco and handles Northern California cases regularly, including situations where federal and state collection actions overlap.

South Bay residents facing wage garnishment have similar needs. A San Jose tax lawyer familiar with both levels of enforcement can identify coordinated resolution strategies that a federal-only or state-only approach might miss. J. David Tax Law serves the San Jose and Silicon Valley markets with the same direct attorney-to-client model. When both federal and California state collection actions are running simultaneously, having a single firm handle both at once simplifies the process considerably.

The Bottom Line

IRS wage garnishment leaves many taxpayers with too little income to cover basic expenses, and it continues until the underlying debt is resolved. The exempt amounts are low, the process is continuous, and inaction allows penalties and interest to compound.

Acting promptly, especially within the 30-day window after receiving a Final Notice of Intent to Levy, makes the most options available. Whether the resolution is a payment plan, an offer in compromise, a hardship claim, or a formal appeal, the approach is the same: respond and engage before the window closes.

Frequently Asked Questions: IRS Wage Garnishment

How much can the IRS garnish from my paycheck? The IRS uses Publication 1494 to calculate a protected “exempt amount” based on filing status and dependents, then takes everything above it. A single filer with no dependents paid weekly keeps only about $309.62 per week in the current tax year, with no percentage cap applied.

Does the IRS need a court order to garnish wages? No. Under Internal Revenue Code Section 6331, the IRS levies wages administratively without a court judgment. It must issue a series of notices, including a Final Notice of Intent to Levy, but no court approval is required.

How long does IRS wage garnishment last? The levy is continuous every pay period until the debt is paid in full, the IRS releases the levy, or the 10-year collection statute expires under IRC Section 6502.

What is the fastest way to stop IRS wage garnishment? Paying in full produces an immediate release. Short of that, arranging an installment agreement or filing a CDP hearing request within the 30-day window can halt garnishment within days. An experienced tax attorney can often move faster than a taxpayer acting alone.

What happens if I ignore the IRS notices? You lose the right to a CDP hearing and the IRS proceeds with garnishment. Failing to return the employer’s exemption paperwork within three days also means the exempt amount is calculated at the lowest possible level, as if you are single with no dependents.

Can the IRS take 100% of my paycheck? Not from a single paycheck where the exempt amount applies. But if that exempt amount is already covered by one paycheck, the IRS can take all earnings from a second job. Bonuses and commissions in periods where the exempt amount is already allocated can also be taken in full.

Do I need a tax attorney to stop IRS wage garnishment? You are not required to hire one. However, given the strict deadlines, documentation requirements, and potential overlap of federal and state collection actions, professional representation often leads to faster and better outcomes than navigating the IRS alone.