Finding out that the California Franchise Tax Board (FTB) is garnishing your paycheck is stressful, especially if the first warning you notice is a smaller deposit on payday. The good news is that an FTB wage garnishment follows clear rules, and you have options, from requesting a modification to setting up a payment plan. This guide explains what an FTB wage garnishment is, how much can be taken, and the practical steps you can take right away.
What is an FTB wage garnishment?
The FTB collects past-due California income taxes using several kinds of withholding orders. According to the FTB, these are "legal orders we issue to collect past due income taxes or a bill owed to local or state agencies." For taxes, the wage garnishment is called an Earnings Withholding Order for Taxes (EWOT), issued on form FTB 2905.
The FTB issues an EWOT to collect:
- Past-due income tax obligations
- Taxpayer liability penalties
When your employer receives an EWOT, it is legally required to withhold part of your wages and send it to the FTB until the balance is paid in full or the FTB releases the order. The FTB tells employers they must give the employee a copy of the order within 10 days of receiving it, so you should receive paperwork from your employer as well. (FTB: Wage garnishments for taxes)
The FTB issues a separate type of garnishment, the Earnings Withholding Order (EWO), for non-tax debts such as court-ordered debt and vehicle registration collections. Those follow different rules. This article focuses on tax garnishments.
How much can the FTB take from your paycheck?
The FTB states that personal income tax wage garnishments "can collect up to 25% of your pay until your balance is paid in full." (FTB: Help with withholding orders)
"Pay" here means pay after certain required deductions. The FTB's payment amount table tells employers to first subtract federal income tax, Social Security, state income tax and State Disability Insurance from gross pay. The garnishment is then calculated on what remains:
- Weekly, pay after required deductions $0–$217.50: $0
- Weekly, pay after required deductions $217.51–$290.00: Amount above $217.51
- Weekly, pay after required deductions $290.01 or more: 25%
- Every 2 weeks, pay after required deductions $0–$435.00: $0
- Every 2 weeks, pay after required deductions $435.01–$580.00: Amount above $435.00
- Every 2 weeks, pay after required deductions $580.01 or more: 25%
- Twice a month, pay after required deductions $0–$471.25: $0
- Twice a month, pay after required deductions $471.26–$628.28: Amount above $471.25
- Twice a month, pay after required deductions $628.29 or more: 25%
- Monthly, pay after required deductions $0–$942.50: $0
- Monthly, pay after required deductions $942.51–$1,256.00: Amount above $942.50
- Monthly, pay after required deductions $1,256.01 or more: 25%
Source: FTB: How much to garnish from an employee's pay (last updated 09/24/2025). Check the page for current figures before relying on them.
Voluntary deductions, such as health insurance premiums or 401(k) contributions, are generally not subtracted first. That's why many people find the garnishment takes a bigger bite than they expected.
The FTB can do more than garnish wages
A wage garnishment is often one of several tools the FTB uses. Its withholding orders also include:
- Orders to Withhold (OTW): for personal income tax, these collect "100% of all assets available or the entire balance due, whichever is less," for example from a bank account.
- Continuous Orders to Withhold (COTW): these attach to ongoing payments you're entitled to for 12 consecutive months or until the balance is paid. They collect 25% for individuals and 100% for business entities.
The FTB may also record a Notice of State Tax Lien. The FTB says a recorded lien becomes public record, attaches to California property you own or acquire, is effective for at least 10 years, and can affect your ability to buy, sell or refinance property. (FTB: Liens)
The FTB generally has 20 years to collect a California tax liability, and some events can restart or pause that clock. (FTB: Statute of limitations on collection actions) Waiting it out is rarely a realistic strategy.
What to do if the FTB is garnishing your wages
1. Read the order and confirm the balance
Log in to MyFTB or call the number on the order to confirm which tax years are involved and how much the FTB says you owe. Make sure the returns for those years were actually filed. If the FTB estimated your tax because a return was missing, filing an accurate return may change the balance.
2. If the levy is a mistake, say so quickly
The FTB says that if you believe a levy was issued in error, you should call the number on the order. If the FTB determines it was issued in error, it will release the levy. If the error was the FTB's, you may be able to request reimbursement of related charges in writing within 90 days of the notice date. (FTB: Help with withholding orders)
3. Ask about a hardship modification
The FTB says it "may modify your wage garnishment or other levy if you have a financial hardship," and you can log in to MyFTB to check whether you're eligible to request a lower amount per payment. Before you call, have your employer's payroll fax number ready, in case the FTB modifies the order. Be prepared to provide financial information.
4. Set up a payment plan if you can
The FTB offers installment agreements. For individuals, its payment plan page lists these eligibility guidelines:
- The amount due doesn't exceed $25,000
- You can pay it in 60 months or less
- You've filed all your income tax returns for the past 5 years
It also lists a $34 setup fee for individuals. You can't apply online if you already have a wage garnishment. You need to call instead, and you may need to submit a financial statement. (FTB: Payment plans)
5. Consider whether an Offer in Compromise fits
The FTB's Offer in Compromise program "allows you to offer a lesser amount for payment of an undisputed tax liability." The FTB considers your ability to pay, assets, current and future income and expenses, and whether the offer is in the state's best interest. FTB offers must be a lump sum, and the FTB notes that collection actions do not automatically stop when you apply. (FTB: Offer in compromise)
6. Pay in full if that's realistic
The FTB says the most effective way to stop a garnishment is to pay in full, then call the number on the order. If you can borrow at a lower cost or have savings, compare that with the interest and penalties that keep accruing.
Owe the IRS too?
Many Californians who owe the FTB also owe the IRS. The two agencies run separate collection systems, and the FTB evaluates its offers separately from offers made to the IRS, CDTFA or EDD. A plan that fixes one agency but ignores the other can fall apart when the second agency levies. It usually makes sense to look at both balances together.
How Tax Resolution Plus can help
Tax Resolution Plus works with California taxpayers on FTB and IRS collection matters from our office at 2575 McCabe Way, Suite 210, Irvine, CA 92614. With your authorization, we can:
- Review your FTB and IRS records
- Help you file any missing returns
- Talk with the agencies on your behalf
- Explain which options, such as a modification, payment plan or offer, fit your situation
We can't promise a specific result. Every case depends on your finances and the agency's review. But you'll get a clear explanation before you commit to anything.
Book a free consultation or call (866) 900-9001.
This article is general information, not tax or legal advice. FTB rules and dollar thresholds change, so check the linked FTB pages for current figures.