Wage Levy for Individuals

The State of Hawai‘i Department of Taxation may issue a continuous salary, wage, or compensation levy to collect tax debt owed by individuals until the debt is paid in full.

Employer’s responsibility

When we issue a wage levy notice to your employer, they must withhold 25% of your gross salary, wages, or compensation and pay the same to us, until the amount indicated (plus accrued penalties and interest) has been paid in full.

Collection Actions

When the wage levy is in effect and in good standing, other collection actions such as referring your case to the Attorney General’s Office will be suspended.

Your state refunds and/or federal income tax refunds may be intercepted and applied to pay down your liability to shorten the duration of the levy claim.

Stopping a Wage Levy

When a wage levy is in effect, it cannot be stopped by entering into a payment agreement or making a partial payment. Should you wish to send voluntary payments or enter into a payment agreement, the additional payments will be applied to pay down your liability to shorten the duration of the levy claim.

Reducing a Wage Levy

We may reduce the amount of the levy payment withheld from your paycheck if it is causing a significant financial hardship, i.e., a wage levy leaves you unable to afford food, rent, or medication. Please submit a written request, Form CM-2, Statement of Financial Condition and Other Information – For Individuals, and proof (copies of bills, past due notices, last 3 months of bank statements, etc.) that supports your request. We may have additional requirements or request additional documents. If your request is approved, we will send an amended wage levy to your employer.

Wage Levy Exemption

If you think you are exempt from a wage levy, please submit written proof that supports your claim.

Releasing a Wage Levy

We will release a wage levy when:

• Your debt is paid in full. (We suggest you research and compare your options. A loan with your bank, credit union, or another financial institution may offer lower interest rates and may allow you to pay more timely to avoid penalties and interest.)
• You provide proof that you filed for bankruptcy relief.

Contact Info

For an in-person meeting, please call your respective district office to schedule an appointment.

Related:

• Tax Collections Service
• Make Payment
• Mandatory Electronic Payment (EFT)
• Tax Clearance Certificates
• Offer in Compromise
• Information and Options to Resolve Your State Tax Debt

Page Last Updated: July 27, 2023