Arizona Wage Garnishment Laws: Prop 209 Cut the Limit to 10%

Wage garnishment in Arizona is a post-judgment remedy — a creditor must first win a lawsuit and obtain a court judgment before they can touch your paycheck. If a judgment has already been entered against you, or if your wages are currently being withheld, this guide explains where the law stands after Proposition 209 — Arizona's 2022 ballot measure that significantly reduced how much creditors can garnish.

What Proposition 209 changed — effective December 5, 2022

Proposition 209 was passed by Arizona voters and took effect December 5, 2022. Before Prop 209, Arizona followed the federal limit, allowing creditors to garnish up to 25% of disposable earnings. After Prop 209, the maximum is the lesser of:

• 10% of your disposable earnings for that pay period, OR
• The amount by which your disposable earnings exceed 60 times the highest applicable federal, state, or local minimum wage per week

In practice, the second prong — the 60-times minimum-wage floor — often protects more than the 10% cap does for lower-wage earners, because it sets a minimum earnings level that cannot be touched at all. Disposable earnings means your take-home pay after legally required deductions — taxes, Social Security, and Medicare. Voluntary deductions like 401(k) contributions do not reduce the disposable-earnings figure. One important exception: the 10% cap is for ordinary debts — garnishment for child support or spousal maintenance can reach up to 50% of disposable earnings under separate rules.

Important: Prop 209 applies prospectively — it governs garnishment orders issued after December 5, 2022. Earlier orders may still operate under the prior rules unless modified by the court.

How wage garnishment works in Arizona after a judgment

Once a creditor has a judgment, the process typically works like this:

1. The creditor applies to the court for a Writ of Garnishment of Earnings.
2. The court issues the writ, which is served directly on your employer (the garnishee).
3. Your employer withholds the required amount from each paycheck and remits it to the court.
4. You should receive a copy of the writ and notice of your right to object and claim exemptions.

Arizona typically serves the writ on the employer directly, not on you first. Your opportunity to respond comes through filing a written objection or exemption claim with the court.

How to claim an exemption or object to garnishment

When you receive notice of a garnishment, you have the right to file a written objection with the court. An objection can challenge the amount being withheld — for example, if the employer is taking more than the Prop 209 cap — or claim that your income is exempt from garnishment entirely. Common exempt income sources include Social Security benefits, unemployment compensation, workers' compensation, and disability payments. These are generally not treated as wages subject to a garnishment writ.

File your objection promptly. Arizona courts have procedural deadlines for responding to garnishment proceedings — confirm the current deadline with the court where the judgment was entered or with a licensed Arizona attorney.

The homestead exemption and other assets

If you own a home in Arizona, Proposition 209 also substantially increased the homestead exemption — the amount of equity in your primary residence that is protected from most judgment creditors. If a creditor has a judgment against you and you have equity in a home, the homestead exemption may be your most important protection. For context on how judgment creditors interact with Arizona real property, see the Arizona foreclosure and deficiency judgment guide linked below.

A bank levy — where a creditor tries to take money from your bank account rather than your paycheck — is a related but separate process. Arizona law protects a base amount in a single deposit account from levy under state exemption law (A.R.S. § 33-1126) — a $5,000 base set by Prop 209 that is indexed for inflation each year, raising it to roughly $5,600 for 2026 (confirm the current year's figure before relying on it).

Fighting the underlying judgment

A garnishment exemption limits what a creditor can take from your paycheck — it does not eliminate the judgment or the underlying debt. If the judgment was entered by default — because you never received the lawsuit or missed the Answer deadline — there may be grounds to ask the court to set it aside. Arizona courts have authority to vacate default judgments in certain circumstances; consult a licensed Arizona attorney about whether your situation qualifies.