Iowa Code » Chapter 642 — GARNISHMENT
Iowa Code

Iowa Code § 642.21 (2026)

Exemption from net earnings

✓ current as of July 2026
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1. The disposable earnings of an individual are exempt from garnishment to the extent provided by the federal Consumer Credit Protection Act, Tit. III, 15 U.S.C. §1671 – 1677 (1982). The maximum amount of an employee’s earnings which may be garnished during any one calendar year is two hundred fifty dollars for each judgment creditor, except as provided in chapter 252D and sections 598.22, 598.23, and 627.12, or when those earnings are reasonably expected to be in excess of twelve thousand dollars for that calendar year as determined from the answers taken by the sheriff or by the court pursuant to section 642.5, subsection 1, question number four. When the employee’s earnings are reasonably expected to be more than twelve thousand dollars, the maximum amount of those earnings which may be garnished during a calendar year for each creditor is as follows:

a. Employees with expected earnings of twelve thousand dollars or more, but less than sixteen thousand dollars, not more than four hundred dollars may be garnished.

b. Employees with expected earnings of sixteen thousand dollars or more, but less than twenty-four thousand dollars, not more than eight hundred dollars may be garnished.

c. Employees with expected earnings of twenty-four thousand dollars or more, but less than thirty-five thousand dollars, not more than one thousand five hundred dollars may be garnished.

d. Employees with expected earnings of thirty-five thousand dollars or more, but less than fifty thousand dollars, not more than two thousand dollars may be garnished.

e. Employees with expected earnings of fifty thousand dollars or more, not more than ten percent of an employee’s expected earnings.

2. No employer shall:

a. Withhold from the earnings of an individual an amount greater than that provided by law.

b. Dispose of garnished wages in any manner other than ordered by a court of law.

c. Discharge an individual by reason of the individual’s earnings having been subject to garnishment for indebtedness.

d. Be held liable for an amount not earned at the time of the service of notice of garnishment or for the costs of a garnishment action.

3. For the purpose of this section:

a. The term “earnings” means compensation paid or payable for personal services, whether denominated as wages, salary, commission, bonus, or otherwise, and includes periodic payments pursuant to a pension or retirement program.

b. The term “disposable earnings” means that part of the earnings of any individual remaining after the deduction from those earnings of any amounts required by law to be withheld. [C51, §1901; R60, §3307; C73, §3074; C97, §4011; C24, 27, 31, 35, 39, §11763; C46, 50, 54, 58, 62, 66, 71, §627.10; C73, 75, 77, 79, 81, §642.21] 84 Acts, ch 1239, §11; 85 Acts, ch 178, §14; 2011 Acts, ch 25, §77; 2018 Acts, ch 1041, §111 Referred to in §537.5105, 537.5106, 537.5201, 627.6, 630.3A, 642.2, 642.22\n\nTue Dec 09 21:58:20 2025 Iowa Code 2026, Chapter 642 (30, 0) 7 GARNISHMENT, §642.25 \n

Notes of Decisions
Cited in 16 cases (3 in the last 5 years), 1982–2026 · leading case: Forker v. Irish (In Re Irish), 311 B.R. 63 (8th Cir. BAP 2004).
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Forker v. Irish (In Re Irish), 311 B.R. 63 (8th Cir. BAP 2004). · cites it 4× “00 of her accrued, unpaid wages are subject to the claims of the Trustee as a single creditor under Iowa Code § 642.21 (1)(b), resulting in a further exemption of $25.”
State Ex Rel. Hamilton v. Snodgrass, 325 N.W.2d 740 (Iowa 1982). · cites it 2× “Iowa Code §§ 642.21 (1), 627.12. Unlike most civil judgments, the support obligation is not dischargeable in bankruptcy.”
In Re the Marriage of Eklofe, 586 N.W.2d 357 (Iowa 1998). · cites it 2× “Iowa Code § 642.21 . The threshold amount of wages available for garnishment is $250 for debtors who expect to earn less than $12,000 annually and increases up to a maximum level of ten percent of earnings for employees who expect to earn $50,000 or more each year.”
Allison-Bristow Cmty. Sch. Dist. v. Iowa Civil Rights Comm'n, 461 N.W.2d 456 (Iowa 1990). · cites it 3× “Iowa Code § 642.21 (1). The maximum amount is ascertained by application of a sliding scale based on the expected annual income.”
In Re Schaefer, 331 B.R. 401 (Bankr. D. Iowa 2005). “Iowa Code § 642.21 (1)(b). For purposes of determining whether Schaefers became insolvent as a result of the transfers under Iowa Code § 684.”
Koethe v. Johnson, 328 N.W.2d 293 (Iowa 1982). “Iowa Code § 642.21 (1). St. Luke’s Medical Center v.”
In Re Lawrence, 205 B.R. 115 (Bankr. E.D. Tenn. 1997). “The Iowa garnishment statute in question provides that earnings are “exempt from garnishment,” Iowa Code Ann. § 642.21 , and the court, noting the state’s history of granting a complete exemption for personal earnings and some “broad policy considerations,” id.”
Matter of Sexton, 140 B.R. 742 (Bankr. S.D. Iowa 1992). “Id. at 4-5. Since Snipes the Iowa Court of Appeals has decided whether Iowa law discriminates between an independent contractor and an employee for the purpose of determining whether earnings are exempt from garnishment under Iowa Code § 642.”
Sergeant v. G.R.D. Investments L.L.C. (Schaefer), 331 B.R. 401 (Bankr. D. Iowa 2005). “Iowa Code § 642.21 (l)(b). For purposes of determining whether Schaefers became insolvent as a result of the transfers under Iowa Code § 684.”
Green Belt Bank & Trust v. Stephanie Marie Van Mill, Mashon Michael Van Mill, Rapid Fin. Serv., LLC a/k/a Small Bus. Fin. Solutions, LLC d/b/a Rapid Fin., Van Mill Farms, LLC, In Rem Judgments, & Unverferth Mfg. Co., Inc. (Iowa 2026). · cites it 5× “See Iowa Code § 642.21 (1)(e). This would mean that Green Belt could only be entitled to $12,129.”
In Re Irish, 303 B.R. 380 (N.D. Iowa 2003). “Iowa Code § 642.21 , the other statute referenced in § 627.”
Green Belt Bank & Trust v. Unverferth Mfg. Co., Inc. (Iowa Ct. App. 2025). · cites it 3× “” See Iowa Code § 642.21 (1)(e) (entitling garnishment of “not more than ten percent of an employee’s expected earnings” for “[e]mployees with expected earnings of fifty thousand dollars or more”).”
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