Virginia Lowers Wage Garnishment Rate for Tax Levies

Virginia is codifying a reduction in the maximum amount of disposable earnings subject to garnishment for unpaid state taxes, under a bill effective July 1, 2027.

Under HB 488, the maximum amount subject to garnishment for state tax levies is the lesser of 25% of weekly disposable earnings or the amount by which weekly disposable earnings exceed 40 times the state or federal minimum wage, whichever is higher. This is the same limit that applies to creditor garnishments in Virginia.

Under current state law, the maximum amount of wages subject to garnishment for a tax levy is 100% of ...