Wage Garnishment in New Jersey
Calculate Your Protected Paycheck in New Jersey
New Jersey: Income-Based Tiered Protection
New Jersey uses a distinctive income-based approach to wage garnishment that provides dramatically stronger protection for lower-income workers. Under N.J. Stat. Ann. § 2A:17-56, workers earning less than 250% of the federal poverty level face only a 10% garnishment cap instead of the standard 25% under the federal baseline.
How the Poverty Threshold Works
New Jersey’s approach ties garnishment protection directly to financial need rather than a fixed formula. A worker whose income falls below 250% of the federal poverty level — which in 2025 is approximately $37,650 for a single person and $78,000 for a family of four — is subject to just a 10% cap on disposable earnings. Workers above that threshold face the standard 25% CCPA limit.
The Minimum Wage Effect
With New Jersey’s $15.49/hour minimum wage (one of the highest in the nation), a full-time minimum-wage worker earns about $619/week, or roughly $32,200/year. This places most minimum-wage workers below the 250% poverty threshold, meaning they benefit from the 10% cap. For these workers, the maximum weekly garnishment would be approximately $62 — a modest amount that preserves the majority of their income.
Comparison to Neighboring States
New Jersey’s protection is stronger than Delaware’s 15% cap for lower-income workers but less generous than New York’s universal 10% gross cap. Pennsylvania bans most garnishment entirely. Compared to federal-default states like Maryland, lower-income New Jersey workers keep substantially more of their wages when faced with creditor garnishment.
NCLC Assessment
Despite this progressive income-based tier, the NCLC gave New Jersey an ‘F’ grade in its 2024 report, primarily due to weak protections on bank account garnishment and asset seizure outside the wage context.
Statute: N.J. Stat. Ann. § 2A:17-56; 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.