When taxpayers fall behind on federal tax debt, one of the most feared enforcement tools is the IRS levy, the legal seizure of your wages, bank accounts, or property. Unlike most creditors, the IRS operates with “super-creditor” powers, meaning it generally does not need a court judgment to take assets. Their authority stems directly from federal statute.
However Congress built safeguards into the law to ensure taxpayers are not stripped of basic living necessities. These protections are codified primarily under Internal Revenue Code § 6334, which outlines property exempt from levy.
Before diving into exemptions, it’s important to understand the scope of IRS power.
Under IRC § 6331, the IRS may levy property if:
Once this process is complete, the IRS can seize:
But federal law draws a line at essential property.
The IRS cannot levy:
This exemption ensures families are not deprived of basic human necessities or educational access.
Authority: IRC § 6334(a)(1)
2026 Inflation-Adjusted Protection: Up to $6,250
Protected household items include:
The exemption is capped at an inflation-adjusted amount, projected around $6,250 for 2026.
If household goods exceed this value, the IRS may seize non-essential luxury items such as:
Authority: IRC § 6334(a)(2)
2026 Protection: Up to $3,125
To prevent taxpayers from losing their livelihood, the IRS cannot seize tools necessary to earn income.
Examples include:
The 2026 inflation-adjusted exemption is estimated at $3,125.
If tools exceed the cap, the IRS may seize surplus or luxury equipment — but not what is reasonably necessary to work.
Authority: IRC § 6334(a)(3)
Unemployment compensation is fully exempt from IRS levy.
This protection recognizes the financial hardship inherent in job loss.
Authority: IRC § 6334(a)(4)
Benefits paid due to workplace injury or disability cannot be levied.
These funds are considered essential for medical care and recovery.
Authority: IRC § 6334(a)(7)
Child support payments are protected because they are legally owed to a dependent — not the taxpayer.
Even if funds pass through the taxpayer’s account, properly traceable child support remains exempt.
Authority: IRC § 6334(a)(8)
Additional protected benefits include:
Note: Social Security retirement is not fully exempt — it can be levied up to 15% under the Federal Payment Levy Program (FPLP).
Authority: IRC § 6334(a)(11)
The IRS cannot intercept or seize mail before delivery.
This includes:
Once funds are deposited into a bank account, however, they may become subject to levy.
Authority: IRC § 6334(a)(10)