The short version
- A CRA garnishment is a "requirement to pay" (RTP): a legal notice telling someone who owes you money (your employer, bank, clients, tenants, an insurer) to send it to CRA instead.
- CRA doesn't need a court order. For most personal debts it generally gives a legal warning first; payroll and GST/HST debts can be garnished right after you're notified.
- An RTP can take a fixed amount per payment, a fixed amount over a period, or a percentage of each payment, and can last 90 days, a year, or until the debt is paid.
- Whoever receives an RTP and ignores it becomes liable to CRA for what they should have sent, up to the full amount.
- The way to reduce or lift a garnishment is to call the collections officer named on it with a budget and a payment offer. Paying the debt, or a bankruptcy or consumer proposal, ends it.
CRA Garnishment and Requirement to Pay
Most people learn their wages are being garnished from their payroll department, which is about the worst way to find out anything. By then CRA has usually tried calling and writing, possibly to an old address. The good news: a garnishment is a negotiation tool as much as a collection tool, and collections officers can change the amount once you're talking to them. Here's how it works and how to get it eased.
Who Can Be Garnished
| Third party | What CRA takes |
|---|---|
| Employer | A set amount or percentage of each pay, before it reaches you |
| Bank or credit union | Money in your accounts; see CRA bank account freeze |
| Clients and customers | Invoices they owe your business |
| Tenants | Rent they owe you |
| Insurers, pension plans, others | Payments they owe you, depending on the type |
For self-employed people and contractors, a requirement to pay sent to a main client can hurt more than a wage garnishment, because it goes straight to the business relationship. Another reason to call before it gets there.
Your pay or account was garnished?
Upload the CRA letter or the notice your employer received. The Document Analyzer tells you the debt, the accounts and years, the amount or percentage being taken, and who to call.
How Much CRA Can Take
The requirement to pay sets the maximum and how it's taken: a fixed amount from each payment, a fixed amount from everything paid in a set period, or a percentage of each payment. CRA doesn't publish a fixed percentage for wages; collections officers set it based on the debt and your situation, and can change it. Provincial wage garnishment limits that protect you against ordinary creditors don't necessarily limit CRA.
For Employers and Other Third Parties
- Follow the notice exactly: the amount, the period, and where to send the money.
- It takes priority over the debtor's instructions; the debtor can't sue you for amounts you sent to CRA.
- Ignore it and you owe it. A third party that doesn't comply becomes liable for what it should have paid, up to the full garnishment amount.
- It ends when the maximum is reached, the period runs out, or CRA writes to say it's no longer in effect.
How to Get a Garnishment Reduced or Lifted
- Call the collections officer named on the notice, or CRA's collections line (1-888-863-8657 for personal income tax debts).
- Show what you can pay. A realistic budget, and evidence if the garnishment leaves you unable to cover rent, food or medication.
- Offer a payment arrangement, ideally with a lump sum; see payment arrangements.
- Fix what caused it: file missing returns (estimated assessments are often too high) and pay new taxes on time.
- Ask for written confirmation when the garnishment is changed or withdrawn, and give a copy to your employer or bank.
If the debt is wrong, a notice of objection filed on time generally holds collection on disputed income tax. If illness or a CRA error caused the penalties and interest, ask for taxpayer relief as well.
When a Garnishment Leaves You Short
If the deductions leave you unable to pay for basic needs, say so to the officer with numbers; hardship is a recognized reason to adjust collection. If the debt can never realistically be paid, a licensed insolvency trustee can explain a consumer proposal or bankruptcy, which generally stop garnishments once filed. The overall picture is on CRA collections and CRA tax debt.
Rules of Thumb
- Keep your address current with CRA so warnings reach you.
- Answer the first legal warning. Garnishments almost always follow ignored warnings.
- Never ask your employer to ignore it. They can't, and asking puts them on the hook.
- Keep paying what you agreed; a missed arrangement payment can restart the garnishment.
More on dealing with CRA is on the CRA guide.
CRA Garnishment Questions
Can CRA garnish my wages without a court order?
Yes. CRA can send a requirement to pay to your employer without going to court. For most personal debts it generally gives a legal warning first.
How much of my pay can CRA take?
The requirement to pay sets a fixed amount, a fixed amount over a period, or a percentage of each payment. CRA does not publish a set percentage; collections officers decide and can adjust it.
How do I stop a CRA garnishment?
Pay the debt, or contact the collections officer to agree a payment arrangement and ask for the garnishment to be reduced or withdrawn. A consumer proposal or bankruptcy generally stops it.
Can CRA garnish payments from my clients?
Yes. A requirement to pay can be sent to anyone who owes you money, including clients and customers of your business, tenants and insurers.
What happens if my employer ignores a CRA garnishment?
The employer becomes liable to CRA for the amount it should have withheld and sent, up to the full amount of the garnishment.
Sources: CRA, How to process a garnishment from the CRA; If you don't pay your debt; Call us if you can't pay. Checked October 2026. The point about provincial wage exemptions not limiting CRA is our understanding of the federal garnishment power (section 224 of the Income Tax Act), and the effect of insolvency filings is general; get advice for your case.
Last reviewed October 5, 2026 against CRA and Government of Canada sources. How we check our facts.