Wage garnishment and exemptions in Iowa

How much of your pay a creditor can take in Iowa. Below: bank accounts, the property Iowa lets you keep, and the steps to claim it.

Short answer

Here is Iowa's rule on wage garnishment. Stricter than federal: on top of the federal limit, each judgment creditor can garnish only a yearly maximum tied to your expected income — $250 if you expect to earn under $12,000; $400 ($12,000–$15,999); $800 ($16,000–$23,999); $1,500 ($24,000–$34,999); $2,000 ($35,000–$49,999); 10% of expected earnings at $50,000 or more. Support orders and some other debts are exceptions. In a bank account: Up to $1,000 total in cash, bank or credit union deposits, or other personal property you choose (Iowa Code § 627.6(14)).

Wage limit
See the rule
Federal benefits in a bank account
Up to 2 months protected
Law
Iowa Code § 642.21

Your paycheck and garnishment in Iowa

Wage limit
Stricter than federal: on top of the federal limit, each judgment creditor can garnish only a yearly maximum tied to your expected income — $250 if you expect to earn under $12,000; $400 ($12,000–$15,999); $800 ($16,000–$23,999); $1,500 ($24,000–$34,999); $2,000 ($35,000–$49,999); 10% of expected earnings at $50,000 or more. Support orders and some other debts are exceptions.
Law
Iowa Code § 642.21

Federal law caps garnishment at 25% of disposable earnings or less (15 U.S.C. 1673(a)); where Iowa's rule protects more, it applies.

In nearby states

Good to know in Iowa

  • Iowa's yearly per-creditor garnishment caps are unusually protective for low and middle incomes (Iowa Code § 642.21).
  • An employer may not fire you because your wages were garnished; you have 2 years to sue for lost wages (Iowa Code §§ 642.21(2)(c), 537.5201(5)).
  • A collector may not falsely threaten arrest, garnishment or seizure of property, or threaten any action the law does not allow (Iowa Code § 537.7103(1)).

Iowa exemptions for your home, car and belongings

  • Iowa protects your homestead (generally up to 1/2 acre in a city or 40 acres elsewhere, Iowa Code § 561.2), one motor vehicle up to $7,000, and household goods and furnishings up to $7,000 total (Iowa Code § 627.6(5), (9)).
  • Social Security, unemployment and public assistance benefits are exempt (Iowa Code § 627.6(8)).

What Iowa protects in a bank account

Up to $1,000 total in cash, bank or credit union deposits, or other personal property you choose (Iowa Code § 627.6(14)).

Your bank must automatically protect two months of directly deposited Social Security, SSI or VA benefits (31 CFR 212.5, 212.6). Read the debt lawsuit guide.

The lawsuit comes first in Iowa

If you don't file an answer, the court or clerk can enter a default judgment giving the plaintiff what was asked for (Iowa Code § 631.5; Iowa Judicial Branch small claims page).

Answer the lawsuit by the deadline. In Iowa: District court: file a motion or answer within 20 days after you are served (Iowa R. Civ. P. 1.303(1)).

What to do if you are sued in Iowa

How to claim an exemption in Iowa

  1. Watch for deadlines

    Note any deadline to claim exemptions on papers from the court, your employer or your bank; it can be short.

  2. Know Iowa's limit

    Iowa's wage rule: Stricter than federal: on top of the federal limit, each judgment creditor can garnish only a yearly maximum tied to your expected income — $250 if you expect to earn under $12,000; $400 ($12,000–$15,999); $800 ($16,000–$23,999); $1,500 ($24,000–$34,999); $2,000 ($35,000–$49,999); 10% of expected earnings at $50,000 or more.

  3. Check your bank deposits

    Iowa also protects money in an account: Up to $1,000 total in cash, bank or credit union deposits, or other personal property you choose (Iowa Code § 627.6(14)). Check that the bank protected your direct-deposited benefits (31 CFR 212.6).

  4. File the exemption claim

    Get the exemption claim form from the clerk and file it in time. Start with Iowa court self-help (official).

Questions about garnishment in Iowa

What is the wage garnishment limit in Iowa?

Stricter than federal: on top of the federal limit, each judgment creditor can garnish only a yearly maximum tied to your expected income — $250 if you expect to earn under $12,000; $400 ($12,000–$15,999); $800 ($16,000–$23,999); $1,500 ($24,000–$34,999); $2,000 ($35,000–$49,999); 10% of expected earnings at $50,000 or more. Support orders and some other debts are exceptions.

How much money in a bank account is protected in Iowa?

Up to $1,000 total in cash, bank or credit union deposits, or other personal property you choose (Iowa Code § 627.6(14)).

Can a creditor take my home or car in Iowa?

Iowa protects your homestead (generally up to 1/2 acre in a city or 40 acres elsewhere, Iowa Code § 561.2), one motor vehicle up to $7,000, and household goods and furnishings up to $7,000 total (Iowa Code § 627.6(5), (9)). Social Security, unemployment and public assistance benefits are exempt (Iowa Code § 627.6(8)).

Can a creditor garnish federal benefits in my bank account in Iowa?

Your bank must automatically protect two months of directly deposited Social Security, SSI or VA benefits (31 CFR 212.5, 212.6). Up to $1,000 total in cash, bank or credit union deposits, or other personal property you choose (Iowa Code § 627.6(14)).

More for Iowa

Wage garnishment in nearby states

Sources

Last checked: Oct 24, 2026.

Federal sources