Michigan Wage Garnishment Exemptions and Limits

If you hold a Michigan small claims judgment and you're about to file a wage garnishment, knowing exactly how much the employer can withhold helps you estimate what you'll actually collect. Michigan follows the federal Consumer Credit Protection Act limits, which protect a significant portion of the debtor's paycheck.

The Two-Part Test

The maximum amount an employer can withhold from each paycheck is the lesser of:

1. 25% of disposable earnings for that pay period
2. The amount by which disposable earnings exceed 30 times the federal minimum wage ($7.25/hour)

The employer calculates both numbers and withholds the smaller one. Here's how that plays out at different income levels on a biweekly pay period (30 × $7.25 × 2 = $435 threshold):

• $600 biweekly disposable: 25% = $150, excess over $435 = $165 → employer withholds $150
• $1,000 biweekly disposable: 25% = $250, excess over $435 = $565 → employer withholds $250
• $500 biweekly disposable: 25% = $125, excess over $435 = $65 → employer withholds $65

For lower-income debtors, the 30× minimum wage floor provides meaningful protection. A debtor earning $450 biweekly in disposable pay would have only $15 garnished.

What Counts as Disposable Earnings

Disposable earnings are what's left after subtracting mandatory deductions required by law:

• Federal income tax
• State income tax
• Local income tax (in Michigan cities that levy one)
• Social Security (FICA)
• Medicare

Voluntary deductions are not subtracted. Health insurance premiums, 401(k) contributions, union dues, and life insurance all remain part of disposable earnings for garnishment calculation purposes.

Income That's Completely Exempt

Several categories of income cannot be garnished at all under Michigan and federal law:

• Social Security retirement and disability benefits
• Supplemental Security Income (SSI)
• Veterans Affairs disability compensation and pensions
• Unemployment benefits — protected under MCL 421.30
• Workers' compensation — protected under Michigan statute
• Public assistance and welfare payments

If the debtor's only income comes from exempt sources, wage garnishment won't produce anything. You'd need to explore other enforcement tools or wait for the debtor's financial situation to change.

What This Means for Creditors

Understanding these limits helps you set realistic expectations. On a biweekly disposable paycheck of $1,500, the maximum withholding is $375 per paycheck (about $812.50 per average month across 26 pay periods). A $5,000 judgment would take roughly six months to satisfy from wages alone — and that's before adding interest and enforcement costs to the balance.

If the garnishment amounts are small relative to the judgment, consider running a bank garnishment (Form MC 13) simultaneously. An active installment payment order stays wage garnishment but does not automatically prevent bank account garnishment.

For detailed calculation worksheets and guidance on combining enforcement tools, the Michigan Judgment Collection Roadmap covers the complete process.

See more Michigan guides →