Imagine checking your bank account only to discover that a large chunk of your paycheck is missing. You didn’t authorize any deductions, yet your employer is withholding money. Chances are, you’re dealing with a Franchise Tax Board (FTB) wage garnishment — a serious action taken by the California Franchise Tax Board to collect unpaid tax debt.
What Is an FTB Wage Garnishment?
The California Franchise Tax Board (FTB) is the state agency responsible for collecting personal and corporate income taxes. When individuals fail to pay their tax debts, the FTB may initiate a wage garnishment to recover the funds.
Wage garnishment is a legal process where the FTB notifies your employer to withhold a portion of your wages and send it directly to them. Unlike private creditors, the FTB doesn’t need a court order to begin this process, making it faster and more aggressive.
How the FTB Can Garnish Wages:
- Notice of Collection Action: The process begins when the California Franchise Tax Board (FTB) sends you a formal Notice of Intent to Garnish Wages, warning that they plan to collect unpaid taxes through wage garnishment.
- 20-Day Waiting Period: After the notice is issued, you typically have 20 days to respond, dispute the debt, or resolve it before garnishment begins.
- Employer Notification: If no resolution is made, the FTB contacts your employer directly with a Wage Garnishment Order (Earnings Withholding Order for Taxes) requiring them to withhold a portion of your wages.
- Dedications from Paycheck: Your employer is legally required to comply. A portion of your after-tax earnings will be deducted from each paycheck and sent to the FTB.
- How Much They Can Take: The FTB can garnish up to 25% of your disposable income or more, depending on your situation, unless you qualify for a hardship exemption.
- Duration of Garnishment: Wage garnishment will continue until the full debt, plus penalties and interest, is paid off, or you make alternative arrangements with the FTB.
Why You May Be Facing a Wage Garnishment
FTB wage garnishment typically results from unpaid tax liabilities. Here are some common triggers:
- Unpaid state income taxes
- Unfiled tax returns
- Penalties and interest from late payments
- Delinquent business taxes for self-employed individuals
Before Garnishment Begins:
- FTB sends multiple notices to collect debt
- Final Notice of Intent to Levy or Garnish
- If no action is taken, garnishment proceeds
Ignoring these notices can lead to automatic wage garnishment and even levies on bank accounts or property.
How Much of Your Paycheck Can the FTB Take?
California law allows the FTB to garnish up to 25% of your disposable income or any amount over 40 times the state minimum wage per week, whichever is less.
- Weekly earnings of $1,000: Up to $250 could be garnished
- Minimum wage protection: If you earn close to minimum wage, less will be taken to ensure you meet basic living standards
Federal vs. State Garnishment Limits:
- FTB garnishments do not require court approval
- State garnishments may be more aggressive than federal IRS levies
What to Do If You Receive an FTB Garnishment Notice
1. Don’t Ignore the Notice
The worst thing you can do is nothing. Respond quickly to avoid further damage.
2. Contact the FTB or a Tax Professional
Get clarification on the amount owed and explore your options for resolving the debt. Tax Relief Helpers offers guidance for these situations.
3. Review and Dispute the Debt (If Applicable)
Sometimes errors happen. If you believe the amount is incorrect or the debt isn’t yours, request a review immediately.
Strategies to Stop or Reduce an FTB Wage Garnishment
FTB wage garnishment isn’t necessarily permanent. Here are steps you can take:
1. Request a Payment Plan
Set up an installment agreement to pay your debt over time and pause the garnishment.
2. Apply for Financial Hardship
If garnishment causes severe hardship, request a temporary suspension based on your income and living expenses.
3. Offer in Compromise (OIC)
If you qualify, you can settle your debt for less than the full amount owed. This is ideal for taxpayers who can’t afford to pay in full.
4. Prove Exemptions
Certain income types (like Social Security) may be exempt. Request a reduction based on legal exemptions.
5. File or Amend Tax Returns
Unfiled returns or incorrect information can inflate your debt. Filing correct returns may reduce your balance and stop garnishment.
Legal and Professional Help for FTB Wage Garnishment
Sometimes it’s best to bring in the experts.
When to Hire a Professional:
- You’re unsure about your rights or options
- The debt is large or disputed
- Garnishment is causing serious hardship
Who Can Help:
- Tax Attorneys: Legal defense and negotiation with the FTB
- Enrolled Agents: Specializing in IRS/FTB representation
- Tax Relief Companies: Assist with payment plans, OICs, and negotiation
Working with professionals can increase your chances of reducing or eliminating the garnishment.
Conclusion
FTB wage garnishment can be overwhelming, but you’re not powerless. By understanding your rights, responding to notices, and taking the right steps, you can reduce or stop garnishment and get your finances back on track.
Whether it’s negotiating a payment plan, filing an offer in compromise, or working with a tax relief professional, the key is to act quickly and confidently.
Need help now? Contact Tax Relief Helpers for a free consultation and personalized advice.
FAQs About FTB Wage Garnishment
How long does an FTB garnishment last?
Until the debt is paid in full, or a payment arrangement is made.
Can the FTB garnish wages without court approval?
Yes. Unlike most creditors, the California Franchise Tax Board does not need court approval to initiate garnishment.
Will wage garnishment affect my credit score?
While garnishment itself doesn’t appear on your credit report, the tax lien or unpaid tax debt might.
Written by: Thomas Brooks
Published: November 10, 2025