VirginiaHB4882026 Regular SessionHouseWALLET

Wage garnishment; state tax debt.

Sponsored By: Phil M. Hernandez (Democratic)

Signed by Governor

Summary

Wage garnishment; state tax debt. Provides that the maximum part of the aggregate disposable earnings of an individual for any workweek that is subject to garnishment to collect delinquent taxes and charges owed to the state government shall not exceed the lesser of (i) 25 percent of such individual's disposable earnings for that week or (ii) the amount by which such individual's disposable earnings exceed 40 times the federal or Virginia minimum wage, whichever is greater. The bill also directs the Department of Taxation to recognize Currently Not Collectible status granted by the Internal Revenue Service and to offer taxpayers with such status a similar Virginia status with comparable protections from collection activities. The bill contains technical amendments and has a delayed effective date of July 1, 2027.

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Bill Overview

Analyzed Economic Effects

1 provisions identified: 1 benefits, 0 costs, 0 mixed.

Limits on workers' Virginia tax debt garnishments

Beginning July 1, 2027, Virginia must follow ordinary wage garnishment limits when collecting state tax debt from workers' pay. For weekly pay, the cap is the smaller of 25% of disposable earnings or earnings above 40 times the higher federal or Virginia minimum hourly wage. The calculation adjusts for other pay periods. Earnings protections also apply to state and local tax levies. Federal tax debt, support orders, and bankruptcy orders remain exceptions to these limits.

Sponsors & Cosponsors

Sponsor

  • Phil M. Hernandez

    Democratic • House

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 225 • No: 0

Senate vote • 3/4/2026

Passed Senate Block Vote

Yes: 40 • No: 0

Senate vote • 3/3/2026

Constitutional reading dispensed Block Vote (on 2nd reading)

Yes: 40 • No: 0

Senate vote • 3/3/2026

Passed by for the day Block Vote (Voice Vote)

Yes: 0 • No: 0

Senate vote • 3/3/2026

Reported from Finance and Appropriations

Yes: 15 • No: 0

House vote • 2/3/2026

Read third time and passed House Block Vote

Yes: 98 • No: 0

House vote • 1/28/2026

Reported from Finance with substitute

Yes: 22 • No: 0

House vote • 1/26/2026

Subcommittee recommends reporting with substitute

Yes: 10 • No: 0

Actions Timeline

  1. Acts of Assembly Chapter text (CHAP0396)

    4/8/2026Governor
  2. Approved by Governor - Chapter 396 (effective - 7/1/2027)

    4/8/2026Governor
  3. Fiscal Impact statement From TAX (3/23/2026 10:38 am)

    3/23/2026House
  4. Governor's Action Deadline 11:59 p.m., April 13, 2026

    3/14/2026Governor
  5. Enrolled Bill communicated to Governor on March 14, 2026

    3/14/2026House
  6. Signed by Speaker

    3/12/2026House
  7. Bill text as passed House and Senate (HB488ER)

    3/11/2026House
  8. Enrolled

    3/11/2026House
  9. Signed by President

    3/11/2026Senate
  10. Passed Senate Block Vote (40-Y 0-N 0-A)

    3/4/2026Senate
  11. Read third time

    3/4/2026Senate
  12. Passed by for the day Block Vote (Voice Vote)

    3/3/2026Senate
  13. Constitutional reading dispensed Block Vote (on 2nd reading) (40-Y 0-N 0-A)

    3/3/2026Senate
  14. Rules suspended

    3/3/2026Senate
  15. Reported from Finance and Appropriations (15-Y 0-N)

    3/3/2026Senate
  16. Fiscal Impact statement From TAX (2/21/2026 3:18 pm)

    2/21/2026House
  17. Referred to Committee on Finance and Appropriations

    2/4/2026Senate
  18. Constitutional reading dispensed (on 1st reading)

    2/4/2026Senate
  19. Read third time and passed House Block Vote (98-Y 0-N 0-A)

    2/3/2026House
  20. Engrossed by House - committee substitute

    2/2/2026House
  21. committee substitute agreed to

    2/2/2026House
  22. Read second time

    2/2/2026House
  23. Read first time

    1/30/2026House
  24. Committee substitute printed 26106135D-H1

    1/29/2026House
  25. Reported from Finance with substitute (22-Y 0-N)

    1/28/2026House

Bill Text

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