Virginia Limits Treasurer’s Liens Against Wages

During its 2026 session, the Virginia General Assembly amended Code of Virginia § 58.1-3952, significantly changing how treasurer's liens apply to wages.

Before July 1, 2026, treasurer's liens for delinquent taxes were generally exempt from the limits that apply to garnishments and certain debtor protections. As a result, a treasurer's lien could reach all of a delinquent taxpayer's disposable earnings.

Effective July 1, 2026, most treasurer's liens that attach to wages, salary, or other compensation are limited to 25% of disposable earnings per pay period. The 25% cap does not apply when:

• The taxpayer's most recently reported adjusted gross income exceeds 250% of the applicable federal poverty guideline;
• A court finds that the taxpayer is likely to flee the jurisdiction or is improperly disposing of assets to avoid collection; or
• The debt involves taxes collected and held in trust for the locality, such as food and beverage, admissions, or transient occupancy taxes.

The amendments also provide relief for taxpayers whose financial circumstances have changed since filing their last tax return. If a taxpayer demonstrates that current income or household circumstances would place them at or below 250% of the applicable poverty guideline, the treasurer must promptly notify the lien recipient that the lien is subject to the 25% limitation.

The revised statute also clarifies that these protections follow earnings regardless of whether they are paid directly to the person or deposited with another entity or person, so long as the funds remain traceable as earnings, including pension and retirement payments. The new restrictions apply only to compensation for personal services; they do not apply to income from other sources, such as proceeds from the sale or rental of real estate.

In addition to the 25% cap, Virginia law now protects a minimum amount of weekly take-home pay from collection. A treasurer's lien may reach only the portion of disposable earnings that exceeds 40 times the Virginia minimum wage. Based on the current minimum wage of $12.77 per hour, a lien generally cannot reduce weekly disposable earnings below $510.80, subject to future minimum-wage increases.

These changes may require localities and Treasurers to reevaluate their collection policies and timelines. Because wage liens are now subject to significant limitations, localities should consider beginning collection efforts promptly after delinquency occurs to improve the likelihood of recovery.

If you have any questions, please contact one of our Local Government Attorneys.

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