State Tax Debt: How State Tax Agencies Collect
State income tax is collected by each state’s own tax agency under that state’s laws. Each page below covers one agency: the notices it sends, how it garnishes wages, levies bank accounts and records liens, its payment plans and offers, and how a bill is disputed, with a table comparing each rule to the IRS. Every rule is taken from the agency’s own pages or the state’s statutes and cited on the page.
California: Franchise Tax Board
The Franchise Tax Board collects California personal income tax. It states that it has 20 years to collect on a liability under R&TC 19255, and that its wage garnishment orders can collect up to 25% of pay.
New York: Department of Taxation and Finance
The Department of Taxation and Finance collects New York income tax. It describes a filed tax warrant as equivalent to a civil judgment, an income execution can take up to 10% of gross wages, and Tax Law § 171-v allows driver’s license suspension for past-due tax of $10,000 or more.
New Jersey: Division of Taxation
The Division of Taxation collects New Jersey Gross Income Tax. An unpaid balance can be entered as a Certificate of Debt, which the Division says has “the same force and effect as a Docketed Judgment,” and interest for 2026 is 10.00%.
Illinois: Department of Revenue
The Illinois Department of Revenue collects Illinois income tax. After at least 10 days’ notice it can levy up to 15 percent of gross wages, and a bank levy holds account funds for 20 days before the bank sends them on.
Pennsylvania: Department of Revenue
The Department of Revenue collects Pennsylvania Personal Income Tax. A Notice of Intent to Garnish Wages comes at least 30 days before an employer is ordered to withhold 10% of gross wages each pay period, and the Department says it can freeze a bank account for liened tax balances.
Georgia: Department of Revenue
The Georgia Department of Revenue collects Georgia income tax. An Official Assessment that is neither paid nor appealed within 45 days can become a State Tax Execution with a 20% collection fee, and appeals have gone to the new Georgia Tax Court since July 1, 2026.
North Carolina: Department of Revenue
The North Carolina Department of Revenue collects state income tax. State law allows no more than 10% of wages to be garnished for a tax debt, and an overdue debt can carry a collection assistance fee of 20% of the amount owed.
Ohio: Department of Taxation and Attorney General
The Ohio Department of Taxation assesses state income tax, and amounts still unpaid 45 days after they are due are certified to the Ohio Attorney General for collection. A petition for reassessment must be filed within 60 days after the notice of assessment is served.
Massachusetts: Department of Revenue
The Massachusetts Department of Revenue collects state personal income tax. State law gives it 10 years after assessment to collect, and a weekly wage levy leaves $75 plus $25 for each listed dependent exempt.
Virginia: Department of Taxation
Virginia Tax collects state income tax. It can have an employer withhold 25% of net wages, and for assessments made on or after July 1, 2016, collection must end seven years from the date of assessment.
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Sources
- FTB: Statute of limitations on collection actions
- FTB: Help with withholding orders
- NYS DTF: Tax warrants
- NYS DTF: Income executions
- New York Tax Law § 171-v, driver’s license suspension
- NJ Division of Taxation: Judgments
- NJ Division of Taxation: Technical Bulletin TB-21(R), interest rates
- Illinois Department of Revenue: Collection process
- Pennsylvania Department of Revenue: Wage garnishment
- Pennsylvania Department of Revenue: REV-554, Your Rights as a Pennsylvania Taxpayer
- Georgia Department of Revenue: Taxpayer Bill of Rights
- Georgia Department of Revenue: Georgia Tax Court
- N.C. Gen. Stat. § 105-242, levy, attachment and garnishment
- N.C. Gen. Stat. § 105-243.1, collection assistance fee
- Ohio Revised Code § 131.02, certification to the Attorney General
- Ohio Revised Code § 5747.13, income tax assessments
- M.G.L. c. 62C, section 65, time for collection
- M.G.L. c. 62C, section 55A, property exempt from levy
- Virginia Tax: Collections
- Code of Virginia § 58.1-1802.1, period of collection
IRS Circular 230 Disclosure: To ensure compliance with Treasury Department rules governing tax practice, any tax information contained on this website was not written and is not intended to be used, and cannot be used, for the purpose of avoiding any federal tax penalty. You should consult a licensed tax professional regarding your individual situation.
Results described on this website are not a guarantee, warranty, or prediction of the outcome of any tax matter. Every situation is different. Prior results do not guarantee a similar outcome. Article content reflects general information about federal and state tax procedure as of the last reviewed date and may not reflect subsequent changes in IRS or state tax agency policy, statutes, regulations, or case law.