US Taxes: Garnishments

Maine announced that the State Minimum Wage increases from $14.65 in 2025 to $15.10 in 2026, effective 01/01/2026. This directly impacts the Creditor Garnishment exemption calculation which uses the State Minimum Wage. GPTCI-75870

https://www.maine.gov/labor/news_events/article.shtml?id=13270099

Connecticut announced that the State Minimum Wage is increased from $16.35 per hour to $16.94 per hour, effective 01/01/2026. The State Minimum Wage directly impacts the Exemption calculation to determine the maximum allowed to be withheld for Creditor Garnishments subject to Connecticut rules. GPTCI-75399

Creditor Garnishment Exemption Rules for Jurisdiction/Garn type (Effective 01/01/2026):

• Federal Rule #1 – 75% of Disposable Income
• Federal Rule #2 – 30 * Federal Minimum Wage per week
• State Rule #1 – 75% of Disposable Income
• State Rule #2 – 40 * Federal Minimum Wage ($7.25) per week
• State Rule #3 – 40 * State Minimum Wage ($16.94) per week

https://portal.ct.gov/governor/news/press-releases/2025/09-2025/governor-lamont-announces-minimum-wage-will-increase?language=en_US

Connecticut announced that the State Minimum Wage is increased from $16.35 per hour to $16.94 per hour, effective 01/01/2026. The State Minimum Wage directly impacts the Exemption calculation to determine the maximum allowed to be withheld for State Levies subject to Connecticut rules. GPTCI-75399

State Levy Garnishment Exemption Rules for Jurisdiction/Garn type (Effective 01/01/2026):

• State Rule #1 – 75% of Disposable Income
• State Rule #2 – 40 * Federal Minimum Wage ($7.25) per week
• State Rule #3 – 40 * State Minimum Wage ($16.94) per week

https://portal.ct.gov/governor/news/press-releases/2025/09-2025/governor-lamont-announces-minimum-wage-will-increase?language=en_US

Minnesota announced that the State Minimum Wage increases from $11.13 per hour to $11.41 per hour, effective 01/01/2026. This directly impacts the exemption calculation for Minnesota Creditor Garnishments. GPTCI-74414

The State exemption rules for Creditor Garnishments are that the amount that can be withheld are limited to the amount that Disposable Income exceeds the largest of the following exemptions if the Court Order Date is 4/1/2025 through 5/7/2025 or 6/1/2025 or later: 

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

https://www.dli.mn.gov/news/minimum-wage-rate-adjusted-inflation-jan-1-2026

Minnesota announced that the State Minimum Wage increases from $11.13 per hour to $11.41 per hour, effective 01/01/2026. This directly impacts the exemption calculation for Minnesota State Student Loan Garnishments. GPTCI-74414

The State exemption rules for State Student Loan Garnishments are that the amount that can be withheld are limited to the amount that Disposable Income exceeds the largest of the following exemptions if the Court Order Date is 4/1/2025 through 5/7/2025 or 6/1/2025 or later: 

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

https://www.dli.mn.gov/news/minimum-wage-rate-adjusted-inflation-jan-1-2026