US Taxes: Garnishments

South Dakota - Creditor Garnishment Exemption Change due to State Minimum Wage [Effective January 1, 2026]

South Dakota announced that the State Minimum Change increased from $11.50/hour in 2025 to $11.85/hour in 2026. This directly impacts the exemption calculation amount for Creditor Garnishments subject to South Dakota rules. South Dakota’s exemption rules are 80% of Disposable Income, 40 * Federal Minimum Wage per week, and 40 * State Minimum Wage per week. There is an additional $25 per week for each dependent indicated. GPTCI-79417

https://dlr.sd.gov/employment_laws/minimum_wage.aspx

Federal - Tax Levy Exemption Changes [Effective January 1, 2026]

The IRS announced the amounts exempt from Levy for 2026. GPTCI-79138

IRS Filing Status per 668-W	Standard Deduction Amount	Per Exemption Amount	Per Additional Exemption for Age/Blindness
Single	$16,100 (up from $15,000 in 2025)	$5,300 (up from $5,100 in 2025)	$2,050 (up from $2,000 in 2025)
Married Filing Jointly or Qualifying Widow(er)	$32,200 (up from $30,000 in 2025)	$5,300 (up from $5,100 in 2025)	$1,650 (up from $1,600 in 2025)
Head of Household	$24,150 (up from $22,600 in 2025)	$5,300 (up from $5,100 in 2025)	$2,050 (up from $2,000 in 2025)
Married Filing Separate Return	$16,100 (up from $15,000 in 2025)	$5,300 (up from $5,100 in 2025)	$1,650 (up from $1,600 in 2025)

https://www.irs.gov/pub/irs-drop/rp-25-32.pdf

Arizona - State Tax Levy Exemption Changes [Effective January 1, 2026]

The IRS announced the amounts exempt from Levy for 2026. Arizona uses the IRS Federal Tax Levy limits for their State Tax Levy calculation. GPTCI-79138

IRS Filing Status per 668-W	Standard Deduction Amount	Per Exemption Amount	Per Additional Exemption for Age/Blindness
Single	$16,100 (up from $15,000 in 2025)	$5,300 (up from $5,100 in 2025)	$2,050 (up from $2,000 in 2025)
Married Filing Jointly or Qualifying Widow(er)	$32,200 (up from $30,000 in 2025)	$5,300 (up from $5,100 in 2025)	$1,650 (up from $1,600 in 2025)
Head of Household	$24,150 (up from $22,600 in 2025)	$5,300 (up from $5,100 in 2025)	$2,050 (up from $2,000 in 2025)
Married Filing Separate Return	$16,100 (up from $15,000 in 2025)	$5,300 (up from $5,100 in 2025)	$1,650 (up from $1,600 in 2025)

https://www.irs.gov/pub/irs-drop/rp-25-32.pdf

Michigan - State Tax Levy Exemption Changes [Effective January 1, 2026]

The IRS announced the amounts exempt from Levy for 2026. Michigan uses the IRS Federal Tax Levy limits for their State Tax Levy calculation for State Tax Debts. GPTCI-79138

IRS Filing Status per 668-W	Standard Deduction Amount	Per Exemption Amount	Per Additional Exemption for Age/Blindness
Single	$16,100 (up from $15,000 in 2025)	$5,300 (up from $5,100 in 2025)	$2,050 (up from $2,000 in 2025)
Married Filing Jointly or Qualifying Widow(er)	$32,200 (up from $30,000 in 2025)	$5,300 (up from $5,100 in 2025)	$1,650 (up from $1,600 in 2025)
Head of Household	$24,150 (up from $22,600 in 2025)	$5,300 (up from $5,100 in 2025)	$2,050 (up from $2,000 in 2025)
Married Filing Separate Return	$16,100 (up from $15,000 in 2025)	$5,300 (up from $5,100 in 2025)	$1,650 (up from $1,600 in 2025)

https://www.irs.gov/pub/irs-drop/rp-25-32.pdf