US Taxes: Garnishments

Tax and Garnishment Tables – Notice 2025-20

Version
Notice 2025-20
Release Date
12/13/2025
ft:lastEdition
2025-12-18

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

California announced the State Minimum Wage changed from $16.50 in 2025 to $16.90 in 2026, effective 01/01/2026. This change directly impacts the Creditor Garnishment Exemption amounts which are 80% of disposable income, 48 * State Minimum Wage (or Local Minimum Wage if entered) per week + 60% of the excess that disposable income exceeds the 48* State Minimum Wage (or Local Minimum Wage if entered) per week. GPTCI-82712

https://www.dir.ca.gov/IWC/MW-2026.pdf

California - State Tax Levy Exemption Change due to State Minimum Wage [Effective January 1, 2026]

California announced the State Minimum Wage changed from $16.50 in 2025 to $16.90 in 2026, effective 01/01/2026. This change directly impacts certain State Levy Exemption amounts based on the parameters selected. GPTCI-82712

  • Tax Debt to CA FTB and Court Order Date is prior to 09/01/2023. This exemption uses an exemption rule of 80% of disposable income, 48 * State Minimum Wage (or Local Minimum Wage if entered) per week + 60% of the excess that disposable income exceeds the 48* State Minimum Wage (or Local Minimum Wage if entered) per week.
  • Tax Debt to CA FTB and Court Order Date is on or after 09/01/2023. This exemption uses an exemption rule of 75% of disposable income, 40 * State Minimum Wage (or Local Minimum Wage if entered) per week + 50% of the excess that disposable income exceeds the 40* State Minimum Wage (or Local Minimum Wage if entered) per week.
  • Non-Tax Debt CA Court Ordered Debt / Vehicle Registration Collection. This exemption uses an exemption rule of 80% of disposable income, 48 * State Minimum Wage (or Local Minimum Wage if entered) per week + 60% of the excess that disposable income exceeds the 48* State Minimum Wage (or Local Minimum Wage if entered) per week.

https://www.dir.ca.gov/IWC/MW-2026.pdf