Wage garnishment is one of the most disruptive debt collection tools a creditor can use. Having money deducted directly from your paycheque before you even receive it can make it nearly impossible to cover basic living expenses. Understanding the rules — and your rights — is essential.
What Is Wage Garnishment?
Wage garnishment (called "wage assignment" in some provinces) is a legal process where a creditor obtains a court order requiring your employer to deduct a portion of your wages and send it directly to the creditor. In Canada, most private creditors must sue you, obtain a judgment, and then apply to court for a garnishment order. The CRA is a significant exception — it can garnish without a court order.
Use our Wage Garnishment Calculator to find exactly how much can be taken from your wages by province or state.
Wage Garnishment Limits by Canadian Province
| Province | Exempt Amount | Max Garnishable |
|---|---|---|
| Ontario | No fixed statutory amount | ~20% of net (court discretion) |
| British Columbia | 70% of net wages exempt | 30% of net wages |
| Alberta | $800/month + $200/dependent exempt | Earnings above exemption |
| Quebec | 70% of net wages exempt | 30% of net wages |
| Manitoba | $250/week exempt | Earnings above $250/week |
| Saskatchewan | 70% of net wages exempt | 30% of net wages |
| Nova Scotia | $895/month exempt | Earnings above exemption |
| Federal (CRA) | Varies — can be 100% | Up to 100% via Requirement to Pay |
Support orders (child support, spousal support) can typically garnish up to 50% of net wages in most provinces, regardless of the above exemptions.
CRA Wage Garnishment: A Special Case
The Canada Revenue Agency does not need a court order to garnish wages. Under section 224 of the Income Tax Act, the CRA can issue a "Requirement to Pay" directly to your employer, bank, or any third party that owes you money. This is one of the most powerful collection tools available to any creditor in Canada.
The CRA can also:
- Garnish your bank account (seize funds on deposit)
- Intercept HST/GST refunds and income tax refunds
- Register a lien against your property
- Garnish amounts owed to you by clients or customers (if self-employed)
If you receive a CRA Requirement to Pay notice, contact the CRA immediately to negotiate a payment arrangement. Filing a consumer proposal or bankruptcy will immediately stop CRA garnishment.
US Federal Wage Garnishment Rules (CCPA)
In the United States, federal wage garnishment is governed by Title III of the Consumer Credit Protection Act (CCPA). The federal limit is the lesser of:
- 25% of disposable earnings (earnings after legally required deductions), OR
- The amount by which disposable earnings exceed 30 times the federal minimum wage ($7.25 × 30 = $217.50/week)
Example: If your disposable earnings are $600/week, 25% = $150. The amount over 30× minimum wage = $600 - $217.50 = $382.50. The garnishment limit is the lesser: $150/week.
Use our US Wage Garnishment Calculator to calculate your specific limit.
US States With No Private Wage Garnishment
Four states prohibit wage garnishment for most private (consumer) debts:
- Texas — No private creditor wage garnishment (support, student loans, taxes still allowed)
- Pennsylvania — No private creditor wage garnishment
- North Carolina — No private creditor wage garnishment
- South Carolina — No private creditor wage garnishment
In these states, creditors must pursue bank account levies or property liens instead. Federal debts and support orders can still be garnished under federal law.
States With Stricter Limits Than Federal
Many states protect more than the federal minimum:
- California: 25% of disposable earnings OR amount exceeding 40× state minimum wage — whichever is less
- New York: 10% of gross wages (much stricter than federal)
- Florida: 100% exempt if head of household earning ≤$750/week; 25% otherwise
- Illinois: 15% of gross wages or amount exceeding 45× minimum wage
How to Stop a Wage Garnishment in Canada
- Pay the debt in full — the garnishment order is immediately lifted
- Negotiate with the creditor — many creditors will accept a repayment arrangement and agree to lift the garnishment
- File a consumer proposal — filing immediately triggers an automatic stay of proceedings under the BIA, stopping all garnishments the same day
- File for bankruptcy — same automatic stay applies; garnishment stops immediately upon filing
- Challenge the garnishment in court — if the underlying debt judgment is invalid or the exemption amount is incorrect
A Licensed Insolvency Trustee can stop a garnishment on the same day you file a consumer proposal or assignment in bankruptcy. This is often the fastest relief available.
How to Stop a Wage Garnishment in the US
- Pay the judgment — creditor must file a satisfaction with the court
- Claim an exemption — file an exemption claim if your income is below the protected threshold
- File for bankruptcy — Chapter 7 or Chapter 13 triggers an automatic stay, immediately halting the garnishment
- Negotiate a settlement — lump-sum settlement for less than the full judgment may end the garnishment
- Dispute the underlying debt — if the debt is invalid, contest it in court
Related: Consumer Proposal Calculator · Bankruptcy Means Test · Debt-to-Income Ratio Calculator · All Bankruptcy Calculators
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Open Calculator →This article is for educational purposes only and does not constitute legal advice. Consult a qualified lawyer for advice specific to your situation.