Wage Garnishment Priority Order: Types, Ranking, and CCPA Limits

9/2/2026

When an employee has more than one garnishment, payroll generally processes child support first, then a federal tax levy (ranked by the date it was received compared with any support order), then state and local tax levies, then federal agency and student loan withholding, and finally ordinary creditor garnishments in the order received. A Chapter 13 bankruptcy order changes that picture and stops most creditor garnishments. Throughout, the federal Consumer Credit Protection Act (CCPA) caps how much can be taken from each paycheck.

The Main Types of Garnishment

• Child support and alimony. Income withholding orders issued by a court or state child support agency. These are the most common orders payroll receives.
• Federal tax levy. An IRS notice of levy on wages (Form 668-W). It is not a garnishment under the CCPA percentage limits; instead, the employee keeps an exempt amount based on filing status and dependents, and the rest goes to the IRS.
• State and local tax levies. Issued by state revenue departments and some localities under their own statutes.
• Federal agency administrative wage garnishment (AWG). Includes defaulted federal student loans and other nontax debts owed to federal agencies. These orders arrive without a court judgment.
• Creditor garnishments. Court-ordered garnishments for consumer debts such as credit cards, medical bills, and private student loans.
• Bankruptcy orders. In a Chapter 13 case, the court may order the employer to send part of the employee's pay to the bankruptcy trustee.

The Working Priority Order

There is no single federal statute that ranks every type of order. The ranking comes from a mix of federal law, state law, and the dates orders arrive. The order below is the one most payroll departments use as a starting point.

1. Bankruptcy (Chapter 13). Once a bankruptcy petition is filed, the automatic stay stops most creditor garnishments. A Chapter 13 wage order then directs payment to the trustee. Child support and other domestic support obligations generally continue. Stop creditor garnishments only when you receive notice of the filing, and document when you received it.
2. Child support. Federal law gives support withholding priority over other legal process under state law against the same income.
3. Federal tax levy. Priority depends on timing. A support order in place before the levy is honored first. If the levy was received before a later support order, the levy takes priority. This timing rule catches many payroll teams.
4. State and local tax levies. Generally ranked by state law and receipt date against other orders.
5. Federal agency AWG, including federal student loans. Withholding is limited to 15% of disposable pay. Coordinate it with other orders by following the order's own instructions.
6. Creditor garnishments. Usually first in time, first in right. A second creditor waits until the first is satisfied or until there is room under the limits.

When two orders conflict and the ranking is unclear, don't guess. Contact the issuing agency or court and get legal advice. Keep a record of the date and time each order was received, because receipt order decides most ties.

CCPA Limits: How Much You Can Withhold

Title III of the CCPA limits garnishment based on disposable earnings: gross pay minus deductions required by law, such as federal, state, and local income taxes, the employee's Social Security and Medicare, and state-mandated deductions. Voluntary deductions such as health premiums, 401(k) deferrals, and union dues are not subtracted.

• Ordinary garnishments: the lesser of 25% of disposable earnings or the amount by which weekly disposable earnings exceed 30 times the federal minimum wage. At $7.25 an hour, that protected floor is $217.50 per week.
• Child support and alimony: up to 50% of disposable earnings if the employee supports another spouse or child, or 60% if not. Each limit rises by 5 percentage points when payments are more than 12 weeks in arrears.
• Federal student loan AWG: up to 15% of disposable pay.
• Not subject to the CCPA percentages: Chapter 13 bankruptcy orders and federal tax levies. Those follow the bankruptcy court's order and the IRS exempt-amount tables.

The limits apply to the total withheld. If support withholding already takes 25% or more of disposable earnings, nothing more can be taken for an ordinary creditor garnishment. If support takes less than 25%, a creditor garnishment can use only the difference. State law may set lower limits, and when federal and state limits differ, apply the one that leaves the employee more pay.

A Worked Example

An employee has weekly disposable earnings of $800 and receives two orders: child support of $150 per week and a credit-card judgment.

• Child support comes first: $150, which is 18.75% of disposable earnings and within the support limit.
• The 25% ordinary cap is $200. The alternative test ($800 minus $217.50) is $582.50, so the lesser figure, $200, applies.
• Because support already takes $150 of that $200, the creditor garnishment is limited to $50 per week.

If a federal tax levy arrived later, it would be calculated separately using the IRS exempt amount, not the CCPA percentages.

Employer Obligations Beyond the Math

• Respond on time. Many orders require an answer or acknowledgment within a fixed period. An employer that ignores an order can become liable for the amount that should have been withheld.
• Protect the employee's job. The CCPA prohibits firing an employee because their earnings have been garnished for any one debt.
• Handle terminations. When a garnished employee leaves, notify each issuing agency or court as the order instructs. For support orders, include the new employer if known.
• Watch final pay. Final paychecks, bonuses, and commissions are generally earnings and subject to the order.
• Document everything. Keep the order, the date received, each calculation, and each remittance. Check year-to-date garnishment totals as part of the year-end payroll checklist.

Frequently Asked Questions

Which comes first, child support or an IRS levy?

It depends on timing. A support order in place before the levy is honored first. A levy received before a new support order generally takes priority over it.

Are private student loans treated like federal ones?

No. Private student loans are collected through ordinary creditor garnishments under court orders and the 25% rule. Only federal student loans use administrative wage garnishment.

Can an employer charge a fee for processing garnishments?

Some states allow a small administrative fee. Where one is allowed, it usually counts toward the withholding limit. Check state law before deducting any fee.

Does a bankruptcy filing stop child support withholding?

Generally no. The automatic stay stops most creditor garnishments, but domestic support obligations usually continue. Follow the bankruptcy court's instructions.

What happens with two creditor garnishments at once?

Most states use first in time, first in right. The second order waits unless there is room under the limits. Some states require proration, so check state law.

Related Reading and Training

For the payroll rules around garnishments, see payroll regulations HR needs to learn and common payroll errors to avoid. For step-by-step calculation practice, take the payroll compliance training or the Certified Payroll Administrator designation. Key terms are defined in the payroll glossary.