VirginiaHB4882026 Regular SessionHouseWALLET

Wage garnishment; state tax debt.

Sponsored By: Jen Kiggans - to resign 12/31 (Republican)

Became Law

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

4 provisions identified: 0 benefits, 0 costs, 4 mixed.

Clear limits on wage garnishment from pay

Beginning July 1, 2027, the law caps most wage garnishments at the smaller of 25% of disposable earnings or what you earn above 40 times the higher of the federal or Virginia minimum wage. For child or spousal support, up to 60% can be taken (50% if you support another spouse or dependent), rising by 5 points after more than 12 weeks of arrears. Bankruptcy and state or federal tax debts also follow these special rules. Courts and agencies cannot issue or enforce orders that break these limits, and the law’s exemptions apply automatically. The law also defines earnings and disposable earnings so everyone uses the same rules.

State workers face payback for overpayments

Beginning July 1, 2027, any Commonwealth officer or employee who gets pay they were not entitled to must repay it, unless they prove it was not their fault, they did not know, and they could not reasonably detect the error. The employer can recover money by payroll deduction, up to 25% of disposable earnings, for certain good‑faith errors or when a court says the employee owes it. If you leave state service or dispute the debt, the Attorney General must sue to recover it. These rules apply to all state officers and employees. Good‑faith payments to Virginia Retirement System beneficiaries are not clawed back under these rules.

Relief and rules for Virginia tax debts

Beginning July 1, 2027, the Tax Department may accept offers in compromise and settle doubtful or disputed Virginia tax claims. If the IRS places you in Currently Not Collectible status, Virginia recognizes that and offers a similar state status with collection protections. At the same time, some property exemptions do not block state or local tax levies or purchase‑price liens. The Department must publish how to apply for state CNC status.

Plain garnishment notices and worker protections

Beginning July 1, 2027, courts use a standard garnishment form that explains in plain English how much pay can be taken and the key exceptions. Employers may rely on your tax withholding certificate to apply exemptions unless a court orders otherwise. An employer cannot fire you just because your pay was garnished for one debt. Any contract that tries to take wages the law protects is void. Banks that hold your deposited earnings do not have to calculate what part is subject to garnishment.

Sponsors & Cosponsors

Sponsor

  • Jen Kiggans - to resign 12/31

    Republican • Senate

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

Reported from Finance and Appropriations

Yes: 15 • 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

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-Chapter396 (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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