Wage Garnishment in Vermont

Vermont: Federal Baseline with the Highest Real Take-Home

Vermont follows the federal baseline CCPA limits under Vt. Stat. Ann. tit. 12, § 3170, with no additional state-level wage garnishment protections. But Vermont’s $14.01 state minimum wage (adjusted annually for inflation) means that even with standard garnishment rules, Vermont minimum-wage workers retain the highest real take-home pay in the nation after garnishment among federal-default states.

The Power of a High Minimum Wage

Vermont’s minimum wage has been adjusted annually for inflation since 2018, creating a steadily rising earnings floor. A full-time minimum-wage worker earns $560.40/week. With $217.50 protected from garnishment, $342.90 is exposed — but the 25% cap limits garnishment to approximately $140/week. The worker retains at least $420.40/week even under maximum garnishment.

This is the highest post-garnishment take-home pay for minimum-wage workers in any federal-default state. A $7.25-state worker earning $290/week would retain at most $272/week after garnishment — roughly $150/week less than the Vermont worker.

New England’s Protection Divide

Vermont is one of two New England states (with Rhode Island) that follow the bare federal baseline for garnishment. This makes Vermont an outlier in the region:

• Massachusetts: 85% gross protection (15% effective cap)
• New Hampshire: 50× multiplier
• Maine: 40× multiplier
• Connecticut: 40× multiplier
• Vermont and Rhode Island: federal baseline only

The Disconnect

Vermont has a reputation as a progressive state with strong worker protections, yet its garnishment laws remain at the federal minimum. A Vermont worker earning $1,000/week in disposable earnings faces up to $250/week garnishment — the same as a worker in Alabama or Georgia, despite the vast differences in cost of living and policy approach between these states.

Vermont’s strong minimum wage provides meaningful insulation for the lowest-paid workers, but moderate-income workers have no state-specific garnishment shield beyond the CCPA. The state legislature has considered but not enacted garnishment reform in recent sessions.

Statute: Vt. Stat. Ann. tit. 12, § 3170; 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.