Federal Wage Garnishment Limits — CCPA Title III

The baseline protection for every American worker

25% Cap Max Garnishment

$217.50/wk Protected Floor

$7.25/hr Federal Minimum Wage

Since 1968 CCPA Enacted

Federal CCPA Calculator

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This calculator is for consumer debt garnishment only. Not legal advice. Rules vary by debt type. Verify with official sources before making decisions.

How the Federal CCPA Works

The Consumer Credit Protection Act (CCPA) Title III (15 U.S.C. § 1673) is the federal law that limits wage garnishment for all American workers. It applies in all 50 states and DC, setting the minimum protection — states can provide stronger protection, but never weaker.

The Formula

For consumer debts (credit cards, personal loans, medical bills), the maximum that can be garnished in any workweek is the lesser of:

25% of disposable earnings for that week, OR
The amount by which disposable earnings exceed 30× the federal minimum wage ($7.25 × 30 = $217.50)

In Plain English

This means:

If your weekly disposable earnings are $217.50 or less: Nothing can be garnished.
If your weekly disposable earnings are $290: Up to $72.50 can be garnished (25% × $290).
If your weekly disposable earnings are $500: Up to $125 can be garnished (25% × $500).

What Are "Disposable Earnings"?

Disposable earnings = gross pay minus legally required deductions:

Federal income tax
State income tax
Social Security (FICA)
Medicare
State-mandated retirement/disability contributions

Voluntary deductions (401k contributions, health insurance premiums, union dues) do not reduce disposable earnings.

States Go Further

While the federal CCPA sets the baseline, many states provide significantly stronger protections. Four states (NC, PA, SC, TX) ban consumer wage garnishment entirely. New York caps it at 10% of gross wages. Check your state's page for details.

The $217.50 Problem

The federal minimum wage has been $7.25 since 2009. Because the CCPA protected floor is tied to the federal minimum wage, the $217.50/week protected amount has not increased in over 15 years, while the cost of living has risen substantially. This is why state-level protections matter so much.

The federal CCPA has protected workers from excessive wage garnishment since 1968, but its formula has not kept pace with inflation. The $217.50/week floor — set in 2009 — is worth about $150 in 2009 dollars today. This erosion makes state-level protections critically important for American workers.

Statute: 15 U.S.C. § 1673 (Consumer Credit Protection Act, Title III) — Department of Labor