Bill > HB488

This bill, effective July 1, 2027, modifies Virginia's wage garnishment laws for state tax debts by establishing new limits on how much of an individual's disposable earnings (income after legally required deductions) can be garnished to collect delinquent state taxes. Specifically, the maximum amount that can be garnished will be the lesser of 25% of the individual's disposable earnings for that week, or the amount by which their disposable earnings exceed 40 times the greater of the federal or Virginia minimum wage. Additionally, the Department of Taxation will now recognize "Currently Not Collectible" (CNC) status granted by the Internal Revenue Service (IRS), meaning individuals with this federal status will be offered a similar Virginia status with comparable protections from state collection efforts, and the Department will develop guidelines for this process that are exempt from standard administrative procedures.