Topic guideUpdated 2026-02-27
Iowa Wage Garnishment — Limits & Exemptions
Wage garnishment limits, homestead exemptions, head-of-household protections, and how to challenge a garnishment in Iowa.
Iowa garnishment limits
Iowa provides greater protection than federal law.
- Maximum garnishment: Lesser of 25% of disposable earnings or amount exceeding 40x federal minimum wage for consumer debts (537.5105); 30x minimum wage for non-consumer debts; annual caps by income bracket ($250–$1,500 depending on income level)% of disposable earnings §642.21
Federal vs. Iowa limits
| | Federal | Iowa | |
|---|---|---|
| Maximum garnishment | 25% of disposable earnings §15 U.S.C. 1673 | Lesser of 25% of disposable earnings or amount exceeding 40x federal minimum wage for consumer debts (537.5105); 30x minimum wage for non-consumer debts; annual caps by income bracket ($250–$1,500 depending on income level)% |
| Minimum wage floor | 30x federal minimum wage §15 U.S.C. 1673 | Higher (more protective) |
| Which applies | Whichever protects more of your wages | — |
What is exempt from garnishment
Not all income can be garnished. Federal law §15 U.S.C. 1673 and Iowa law protect:
- Social Security benefits (with limited exceptions for taxes and child support)
- Supplemental Security Income (SSI)
- Veterans' benefits
- Public assistance / welfare payments
- Workers' compensation benefits
- Retirement and pension income (varies by source)
How to challenge a garnishment
1
Receive the garnishment notice
Your employer will notify you when they receive a garnishment order.
2
File a claim of exemption
If your income is exempt or the garnishment exceeds legal limits, you can file a claim of exemption with the court.
3
Request a hearing
The court will schedule a hearing where you can present evidence that the garnishment should be reduced or eliminated.
Homestead exemption
If you own a home in Iowa, the Homestead exemption protects up to Unlimited equity; limited to 1/2 acre in a city or town, 40 acres rural of equity from creditor claims §561.2.
⚠Garnishment begins automatically once the creditor obtains a court order. If you believe the garnishment is improper or takes too much of your pay, you must act quickly to file a claim of exemption.
✓If you are struggling with a garnishment, explore whether the debt can be settled, whether bankruptcy would eliminate the underlying judgment, or whether you qualify for a reduction based on hardship.
Prepare for Your Consultation
Quick checklist (Debt Collection Defense)
Gather these before your first consultation.
All collection letters
(dates, amounts, collector names)
Account statements
(original creditor records)
Communication log
(calls, texts, voicemails)
General preparation tips only. Specific needs depend on your state and debt type.
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Common Questions
Frequently Asked Questions
General answers to common questions. Specific outcomes depend on your facts and timing.
If you have a deadline, court notice, or upcoming hearing, mention it when requesting assistance so timing can be evaluated promptly.
Related guides
Legal authoritiesStatutes referenced on this page
Iowa Code § 642.21
Iowa wage garnishment limits
Maximum garnishment: Lesser of 25% of disposable earnings or amount exceeding 40x federal minimum wage for consumer debts (537.5105); 30x minimum wage for non-consumer debts; annual caps by income bracket ($250–$1,500 depending on income level)% of disposable earnings. More protective than federal law.
- Maximum: Lesser of 25% of disposable earnings or amount exceeding 40x federal minimum wage for consumer debts (537.5105); 30x minimum wage for non-consumer debts; annual caps by income bracket ($250–$1,500 depending on income level)%
- Exceeds federal protection: yes
Verified 2026-09-24 · quarterly review
15 U.S.C. § 1673
Federal wage garnishment limits (CCPA)
Federal law limits garnishment to 25% of disposable earnings or amount exceeding 30x federal minimum wage. Whichever is more protective applies.
Verified 2026-07-13 · semiannual review
Iowa Code § 561.2
Homestead exemption — Unlimited equity
Homestead protection in Iowa: Unlimited equity.
Verified 2026-09-28 · quarterly review
Citations link to official or authoritative sources. Laws change — verify current text before relying on any statute. How we verify citations →