What are disposable earnings for garnishment?

Disposable earnings are gross pay minus all legally required deductions: federal income tax, state and local income taxes, Social Security tax, Medicare tax, and state unemployment insurance. Voluntary deductions like 401(k), health insurance, FSA, and union dues are NOT subtracted.

What is the 30 times minimum wage test?

Federal law protects a base amount of earnings from garnishment. If disposable earnings are less than 30 times the federal minimum wage ($7.25 × 30 = $217.50 per week), the pay is entirely exempt from garnishment. The threshold scales by pay period length.

Can an employer garnish more than 25%?

For ordinary creditor garnishments, the 25% cap is the federal maximum. However, child support orders can garnish up to 50-65%, and federal tax levies can take a higher percentage based on IRS tables. Student loan garnishments are capped at 15% of disposable earnings.

What if the state limit is different from federal?

When state and federal garnishment limits differ, the employer must apply the limit that results in the smaller garnishment—the one most protective of the employee. Some states like Texas and Pennsylvania have much more restrictive garnishment rules.

Are bonuses and commissions subject to garnishment?

Yes. All forms of compensation including bonuses, commissions, and severance pay are considered earnings subject to garnishment. The same disposable earnings tests apply.

Can I be fired for having a wage garnishment?

Federal law prohibits termination for a single garnishment order. However, this protection does not extend to two or more garnishments. Some states provide broader protection against termination for multiple garnishments.

How do I handle multiple garnishments?

Process garnishments in the order received. The total amount withheld for all ordinary debt garnishments combined cannot exceed 25% of disposable earnings. If a child support order exists, it takes priority and reduces the amount available for other garnishments.

Do I use federal or state minimum wage for the 30x test?

Title III specifies the federal minimum wage ($7.25/hour) for the 30-times test, regardless of your state's minimum wage. However, if your state's garnishment law references the state minimum wage, apply whichever rule is more protective for the employee.

Garnishment Calculator

Calculate wage garnishment limits under federal law. Determines the lesser of 25% of disposable earnings or the amount above 30 times federal minimum wage.

Gross Pay (per period)

Legally Required Deductions

Pay Frequency

Disposable Earnings

$1,500.00

Exempt Amount (30× min wage)

$435.00

Before taxes and deductions

Test 1 (25% of Disposable)

$375.00

Test 2 (Above Exempt)

$1,065.00

Maximum Garnishment

$375.00

25% effective rate

Net After Garnishment

$1,125.00

Planning notes, formulas, and examples

About the Garnishment Calculator

Federal wage garnishment law under Title III of the Consumer Credit Protection Act (CCPA) limits the amount that can be withheld from an employee's paycheck for ordinary debts. The maximum garnishable amount is the lesser of 25% of disposable earnings or the amount by which disposable earnings exceed 30 times the federal minimum wage ($7.25/hour = $217.50/week). If disposable earnings are below 30 times minimum wage, no garnishment is permitted.

Disposable earnings are the portion of an employee's compensation remaining after all legally required deductions—federal, state, and local taxes, Social Security, Medicare, and state unemployment insurance. Voluntary deductions like 401(k), health insurance, and union dues are NOT subtracted when calculating disposable earnings for garnishment purposes.

This Garnishment Calculator helps payroll administrators and employees determine the maximum allowable garnishment per pay period. Enter the employee's gross pay, required tax withholdings, and pay frequency to see the disposable earnings and the garnishment cap. The calculator applies the dual-test formula required by federal law, ensuring compliance with Title III limits.

When This Page Helps

Miscalculating garnishments exposes employers to lawsuits from both creditors and employees. Withholding too much violates the employee's rights under the CCPA, while withholding too little can make the employer liable for the shortfall. This calculator applies the correct federal dual-test formula automatically, reducing compliance risk for every garnishment order processed.

How to Use the Inputs

Enter the employee's gross pay per pay period.
Enter total legally required deductions (federal tax, state tax, local tax, FICA).
Select the pay frequency (weekly, biweekly, semi-monthly, monthly).
The calculator computes disposable earnings and applies both tests.
Review the maximum garnishable amount for the pay period.
Compare against the amount specified in the garnishment order and withhold the lesser.

Formula used

Disposable Earnings = Gross Pay − Legally Required Deductions
Test 1 = Disposable Earnings × 25%
Test 2 = Disposable Earnings − (30 × $7.25 × Weeks in Period)
Max Garnishment = max(0, min(Test 1, Test 2))

Example Calculation

Result: $375 maximum garnishment (biweekly)

Disposable earnings = $2,000 − $500 = $1,500. Test 1: $1,500 × 25% = $375. Test 2: $1,500 − ($217.50 × 2 weeks) = $1,500 − $435 = $1,065. Garnishment = lesser of $375 or $1,065 = $375.

Tips & Best Practices

Use only legally required deductions (taxes, FICA) when calculating disposable earnings—voluntary deductions are excluded.
Some states have lower garnishment limits than the federal 25%—always apply the more protective limit.
Multiple garnishments are satisfied in the order received; total withholding cannot exceed the 25% cap for ordinary debts.
Child support and tax levies have different, higher limits (50-65% for child support).
Tipped employees: tips are included in disposable earnings for garnishment calculation purposes.
The federal minimum wage for garnishment calculation is $7.25/hour regardless of state minimums.

The Dual-Test Formula Explained

Federal garnishment law requires payroll to compute two amounts and withhold the lesser. Test 1 takes 25% of disposable earnings. Test 2 subtracts 30 times the federal minimum wage (prorated for the pay period) from disposable earnings. If Test 2 is negative, no garnishment is allowed because the employee's pay falls below the protected floor.

State Garnishment Variations

Several states impose stricter limits. For example, Texas generally prohibits wage garnishment for consumer debts (except child support, taxes, and student loans). Pennsylvania limits garnishment to specific debt types. New York applies a formula based on either 25% of disposable earnings or 30 times the state minimum wage, whichever is less. Always check your state's specific rules.

Priority of Multiple Withholding Orders

When an employee has multiple garnishments, child support orders take first priority, followed by federal tax levies, then bankruptcy orders, and finally ordinary creditor garnishments. The total cannot exceed applicable limits, so later-priority orders may receive reduced or no payment until earlier orders are satisfied.

Sources & Methodology

Last updated: February 9, 2026

Frequently Asked Questions

Disposable earnings are gross pay minus all legally required deductions: federal income tax, state and local income taxes, Social Security tax, Medicare tax, and state unemployment insurance. Voluntary deductions like 401(k), health insurance, FSA, and union dues are NOT subtracted.