How Much Is Protected
When a creditor obtains a judgment and seeks to garnish your wages, Arizona law sets a ceiling. The statute defines "disposable earnings" as whatever remains after mandatory withholdings required by law (taxes, Social Security, and similar deductions). Pension payments, retirement program distributions, and deferred compensation are included in that definition.
The maximum part of the disposable earnings of a debtor for any workweek that is subject to process may not exceed ten percent of disposable earnings for that week or the amount by which disposable earnings for that week exceed sixty times the applicable minimum hourly wage in effect at the time the earnings are payable, whichever is less.
A.R.S. § 33-1131(B)The "whichever is less" language is key. It means lower-income earners keep a larger share of their paycheck. If 10% of your disposable earnings is more than the amount exceeding the 60-times-minimum-wage threshold, the smaller figure applies. Arizona uses whichever minimum wage is highest among federal, state, or local rates.
When the Limits Change
Two situations override the standard 10% cap. For child support or spousal support orders, creditors can take up to one-half of disposable earnings. That is a significant jump and reflects the priority Arizona places on family support obligations.
The exemptions provided in subsection B do not apply in the case of any order for the support of any person. In such case, one-half of the disposable earnings of a debtor for any pay period is exempt from process.
A.R.S. § 33-1131(C)The standard exemptions also do not apply to federal or state tax debts, or to orders from a federal bankruptcy court under Chapter 13. For families working through estate planning, understanding wage garnishment limits matters because it affects how much income is actually available and what financial pressures beneficiaries or surviving family members may face.