Wage Garnishment in Iowa

Iowa: Federal Baseline with Flat Wage Floor

Iowa follows the federal baseline CCPA limits under Iowa Code § 642.21, providing no additional state-level protections for wage garnishment. Creditors can take up to 25% of disposable earnings or the amount above 30× the federal minimum wage ($217.50/week).

The Stagnant Floor Problem

Iowa’s $7.25 minimum wage has not been raised above the federal floor, meaning the protected amount of $217.50/week has had the same purchasing power since 2009 — while the cost of living has risen approximately 40% in that period. For a full-time minimum-wage worker in Iowa earning $290/week, the $217.50 protected floor still covers 75% of gross earnings, leaving little garnishable. But for workers earning above minimum wage, the erosion of the protected floor’s real value means more of their earnings are exposed to garnishment than would have been the case when the CCPA was last updated.

Midwest Comparison

Iowa sits in a region with mixed protections. Illinois provides a 15% gross cap and 45× state minimum wage exemption — dramatically stronger. Minnesota uses a 40× multiplier. Wisconsin ties exemption to poverty guidelines based on family size. Nebraska offers a 15% HOH cap. Missouri provides a 10% HOH cap. But South Dakota matches Iowa’s federal default, as does Kansas to the south. Iowa is in the least-protective tier of Midwestern states for wage garnishment.

Practical Context

For an Iowa worker earning $800/week in disposable earnings:

• Maximum garnishment: $200/week (25%)
• Amount protected: $600/week

An equivalent Illinois worker would see a maximum of $120/week garnished under the 15% gross cap — a difference of $80/week or over $4,000/year. And a Missouri HOH worker would see only $80/week garnished under the 10% HOH cap. For Iowa workers, relocation even a short distance across a state line can dramatically change their exposure to wage garnishment.

Statute: Iowa Code § 642.21; 15 U.S.C. § 1673 — Official source

This calculator is for consumer debt garnishment only. Not legal advice. Rules vary by debt type (student loans, child support, taxes). Verify with official sources before making any financial or legal decisions.