US Taxes: Garnishments

Minnesota announced changes to exemptions for Creditor Garnishments that have a Court Order Date of 04/01/2025 or later. The new State exemption rules apply are:

• If the employee's disposable income is less than or equal to 40 * SMW (currently $11.13 per week), nothing can be withheld (100% disposable income exemption).
• If the employee’s disposable income greater than 40 * SMW but less than or equal to 60 * SMW, there is a 90% disposable income exemption.
• If the employee’s disposable income greater than 60 * SMW but less than or equal to 80 * SMW, there is an 85% disposable income exemption.
• If the employee’s disposable income greater than 80 * SMW, there is a 75% disposable income exemption.

Creditor Garnishments with Court Order Dates prior to 04/01/2025 will apply the existing exemption rules of 75% of Disposable Income, 40 times the Federal Minimum Wage per Week, and 40 times the state specified rate of $9.50 per week. GPTCI-56033

Minnesota announced changes to exemptions for State Tax Levies that have a Court Order Date of 04/01/2025 or later. The new State exemption rules apply are:

• If the employee's disposable income is less than or equal to 40 * SMW (currently $11.13 per week), nothing can be withheld (100% disposable income exemption).
• If the employee’s disposable income greater than 40 * SMW but less than or equal to 60 * SMW, there is a 90% disposable income exemption.
• If the employee’s disposable income greater than 60 * SMW but less than or equal to 80 * SMW, there is an 85% disposable income exemption.
• If the employee’s disposable income greater than 80 * SMW, there is a 75% disposable income exemption.

State Tax levies with Court Order Dates prior to 04/01/2025 will apply the existing exemption rules of 75% of Disposable Income, 40 times the Federal Minimum Wage per Week, and 40 times the state specified rate of $9.50 per week. GPTCI-56033

Minnesota announced changes to exemptions for State Student Loan Garnishments that have a Court Order Date of 04/01/2025 or later. The new State exemption rules apply are:

• If the employee's disposable income is less than or equal to 40 * SMW (currently $11.13 per week), nothing can be withheld (100% disposable income exemption).
• If the employee’s disposable income greater than 40 * SMW but less than or equal to 60 * SMW, there is a 90% disposable income exemption.
• If the employee’s disposable income greater than 60 * SMW but less than or equal to 80 * SMW, there is an 85% disposable income exemption.
• If the employee’s disposable income greater than 80 * SMW, there is a 75% disposable income exemption.

State Student Loan Garnishments with Court Order Dates prior to 04/01/2025 will apply the existing exemption rules of 75% of Disposable Income, 40 times the Federal Minimum Wage per Week, and 40 times the state specified rate of $9.50 per week. GPTCI-56033