A levy is the IRS's power to actually take money or property to pay a tax debt. It is different from a federal tax lien, which is only a legal claim. When people say the IRS is "garnishing" their wages, they mean a wage levy. Levies are serious, but they do not come out of nowhere. The IRS must follow set steps first, part of your income is protected, and there are clear ways to get a levy released.
For scale: the IRS requested 339,137 levies on third parties such as employers and banks in fiscal year 2025, but conducted only 50 seizures of property such as homes or vehicles, according to its Data Book.
What must happen before a levy
According to the IRS and Publication 594, the IRS usually levies only after:
- It assessed the tax and sent you a bill (a notice and demand for payment);
- You neglected or refused to pay; and
- It sent you a Final Notice of Intent to Levy and Notice of Your Right to a Hearing at least 30 days before the levy, in person, at your home or business, or by certified or registered mail to your last known address.
The IRS also must give you advance notice that it may contact third parties about your account.
The final notice is usually an LT11 or Letter 1058. For levies on certain federal payments, it may be a CP90. These notices give you 30 days to request a Collection Due Process hearing, which generally blocks the levy while the hearing is pending.
A CP504 is a warning, not the final step. The IRS's Collection Due Process FAQ says it cannot levy with just a CP504; the formal final notice with hearing rights comes next. The one exception is your state tax refund, which the IRS says it can take after a CP504.
Exceptions. The IRS does not have to offer a hearing before the levy when collection is in jeopardy, when it levies a state tax refund, when it levies payments to a federal contractor, or for a "disqualified employment tax levy" against a business that already had a hearing on employment taxes in the past two years. In those cases, you get hearing rights after the levy.
What the IRS can levy
Wages, salary and commissions. The IRS sends one levy to your employer, not one each payday. It continues until the debt is paid, other arrangements are made, the collection period ends, or the levy is released.
Bank accounts. A bank levy reaches funds available for withdrawal up to the amount owed on the day the bank gets it. The bank holds the money for 21 days so disputes about who owns it can be resolved, and then sends it to the IRS with any interest earned.
Retirement accounts. Depending on the plan, a levy may reach IRAs, SEP-IRAs, 401(k)-type plans and the Thrift Savings Plan funds you have a vested right to.
Federal payments. Through the Federal Payment Levy Program, the IRS can generally take up to 15% of certain federal payments, such as Social Security retirement and disability benefits and federal retirement annuities. Up to 100% of payments to federal vendors can be taken.
Other property. Dividends, rental income, accounts receivable, the cash value of life insurance and, rarely, homes, cars or boats. Before selling seized property, the IRS sets a minimum bid, gives notice, and generally waits 10 days after the public notice of sale.
How much of your paycheck is protected
Part of your take-home pay is exempt from a wage levy. The amount depends on your filing status, pay period and the number of dependents you claim on the statement that comes with the levy your employer receives. The IRS lists the amounts each year in Publication 1494. Fill out and return that statement promptly so the right amount is protected.
Exempt take-home pay in 2026 (Publication 1494, selected amounts):
| Filing status | Weekly, 0 dependents | Biweekly, 0 dependents | Monthly, 0 dependents | Added per dependent, monthly |
|---|---|---|---|---|
| Single or married filing separately | $309.62 | $619.23 | $1,341.67 | $441.67 |
| Head of household | $464.42 | $928.85 | $2,012.50 | $441.67 |
| Married filing jointly | $619.23 | $1,238.46 | $2,683.33 | $441.67 |
People who are 65 or older or blind get an extra amount.
Example from the 2026 table. A single parent who files as single, is paid every two weeks, and claims two dependents has $1,026.93 of each paycheck exempt. If that person's take-home pay is $1,800, the employer would send the IRS $1,800 − $1,026.93 = $773.07 each payday until the levy ends. That is a big share of a paycheck, which is why acting fast matters.
Property that cannot be levied
Publication 594 lists property the IRS cannot take, including:
- Unemployment benefits
- Certain annuity and pension benefits and certain service-connected disability payments
- Workers' compensation
- Certain public assistance payments
- Income needed for court-ordered child support
- The exempt portion of wages described above
- Schoolbooks and clothing, undelivered mail, and limited amounts of household goods, fuel, provisions and tools of a trade
There are also limits on seizing a main home and certain business assets. And the IRS cannot seize property unless it expects the sale to bring in money toward your debt.
How to get a levy released
By law, the IRS must release a levy if it determines that:
- You paid the amount you owe;
- The collection period ended before the levy was issued;
- Releasing it will help you pay your taxes;
- You entered a payment plan and the terms do not allow the levy to continue;
- The levy creates an economic hardship, meaning it keeps you from meeting basic, reasonable living expenses; or
- The property is worth more than you owe, and releasing it will not hurt collection.
It must also release levies issued improperly, such as against exempt property, before required notices, during a bankruptcy stay, or while a payment plan, offer in compromise or innocent spouse request was pending.
- Call right away. Use the number on the levy notice, or 800-829-1040 for individuals and 800-829-4933 for businesses. If you are already working with an IRS employee, call that person.
- Ask for a release and explain why. If you cannot cover rent, food, utilities or medicine, say so and be ready to show your income and expenses.
- Offer a solution. Setting up a payment plan is often the fastest way out. If you cannot pay anything, ask about Currently Not Collectible status.
- Appeal if needed. Ask for a manager's conference and, if that fails, use the Collection Appeals Program (Form 9423). If you received a final levy notice within the last 30 days, request a CDP hearing with Form 12153.
- Get help. The Taxpayer Advocate Service (877-777-4778) can help when a levy is causing financial hardship. Submit Form 911.
For a bank levy, use the 21-day hold. Call the IRS as soon as you learn of the levy. Once the bank sends the money, getting it back is much harder.
If property was wrongly seized, or belongs to someone else, there are separate claims and appeal rights in Publication 594. An optional lien and levy response package is available on this site, but you can request a release by phone.
Frequently asked questions
Can the IRS take my whole paycheck?
No. Part of your take-home pay is exempt, based on your filing status and dependents under Publication 1494. The rest can go to the IRS each payday until the levy is released or the debt is paid.
Can the IRS take my Social Security?
The IRS can generally levy up to 15% of Social Security benefits through the Federal Payment Levy Program. Certain other benefits, such as unemployment and some public assistance payments, are exempt.
Will a payment plan stop a levy?
Generally yes. The IRS cannot issue a new levy while a payment plan request is pending or approved, and it must release an existing levy if the plan's terms do not allow it to continue.
Is this call or letter about a levy real?
The IRS sends levy notices by mail. It does not demand payment by gift card, wire transfer or cryptocurrency. Check your balance in your IRS Online Account. See IRS scams.
How do I know if I still have a right to a hearing?
Look at the date on your LT11, Letter 1058 or CP90. If you are within 30 days, you can request a CDP hearing. If not, you have up to one year from the notice date to request an equivalent hearing.
Sources
- Internal Revenue Service (IRS), "What is a levy?". irs.gov
- IRS, Publication 594, "The IRS Collection Process" (Rev. 1-2026). irs.gov
- IRS, Publication 1494, "Tables for Figuring Amount Exempt from Levy on Wages, Salary, and Other Income" (2026). irs.gov
- IRS, Publication 1660, "Collection Appeal Rights" (Rev. 1-2020). irs.gov
- IRS, "Collection due process (CDP) FAQs". irs.gov
- IRS, "Understanding your CP504 notice". irs.gov
- IRS Data Book, Table 4-1, "Delinquent Collection Activities, Fiscal Years 2024 and 2025". irs.gov
IRSV.com is an independent guide and is not affiliated with the IRS. This page is general information, not tax or legal advice. Rules change; confirm details on IRS.gov or with a tax professional. Found an error? Tell us.
