California FTB Court-Ordered Debt Calculator — Estimate Your Total Balance

Estimate Your FTB Court-Ordered Debt Balance

Enter your judgment details below to estimate your total debt, including interest and penalties. This is a preliminary estimate only — the official balance is provided by FTB.

Principal Amount (original judgment) *

$

Enter the total amount of the original judgment or restitution order.

Judgment Date * The date the court issued the judgment or restitution order.

Total Payments Made (optional)

$

Any payments you've already made toward this debt. Under California law (CCP §695.220), payments are applied first to accrued interest, then to principal.

Estimated Penalties & Fees (optional)

$

If you have been assessed collection fees, enter the estimated total here. Check your FTB notice for the specific amounts assessed on your account.

Calculate My Debt Reset

Your Estimated Debt Summary

⚠️ Important: This is an estimate only. The official balance is determined by FTB. Interest rates and laws may change. This does not constitute legal or financial advice.

Principal $0.00

Accrued Interest (10% per year) $0.00

Penalties & Fees $0.00

Total Payments Made $0.00

Estimated Total Balance $0.00

Daily Interest Accrual: Your debt is increasing by approximately $0.00 per day.

This is based on simple interest (not compounding) at 10% per year, as required by California law (CCP §685.010).

How This Was Calculated

Formula: Total = Principal + (Principal × 10% × (Days Since Judgment ÷ 365.25)) + Penalties & Fees – Payments Made

Payment Application: Under California law (CCP §695.220), payments are credited first to accrued interest, then to the principal balance. This estimate deducts your total payments from the gross balance; for a precise payment-by-payment breakdown, request a Statement of Account from FTB.

Days Since Judgment: 0 days

Interest Rate: 10% per annum (simple interest, fixed by law for restitution, criminal fines, and court fees).

Statute of Limitations: FTB has 20 years to collect this debt from when it becomes due and payable (R&TC §19255).

Next Step: For a binding payoff quote, contact FTB Court-Ordered Debt Collections at (916) 845-4064 (weekdays 8 AM–5 PM) or visit ftb.ca.gov.

Trusted by California taxpayers, employers, and legal professionals

Calculations follow California law (CCP §685.010, CCP §695.220, R&TC §§19280–19282)

Updated for 2026 SB 1477 changes

FTB Court-Ordered Debt at a Glance — Instant Estimates

See how much a judgment can grow over time. These examples assume 10% simple interest per year (CCP §685.010) with no payments made and no penalties/fees added. Your actual balance may differ.

Principal Amount	1 Year	3 Years	5 Years	10 Years	15 Years	20 Years (Statute Limit)
$1,000	$1,100.00	$1,300.00	$1,500.00	$2,000.00	$2,500.00	$3,000.00
$2,500	$2,750.00	$3,250.00	$3,750.00	$5,000.00	$6,250.00	$7,500.00
$5,000	$5,500.00	$6,500.00	$7,500.00	$10,000.00	$12,500.00	$15,000.00
$10,000	$11,000.00	$13,000.00	$15,000.00	$20,000.00	$25,000.00	$30,000.00
$25,000	$27,500.00	$32,500.00	$37,500.00	$50,000.00	$62,500.00	$75,000.00
$50,000	$55,000.00	$65,000.00	$75,000.00	$100,000.00	$125,000.00	$150,000.00
$100,000	$110,000.00	$130,000.00	$150,000.00	$200,000.00	$250,000.00	$300,000.00

How to read this table: A $5,000 judgment from 2016 (10 years ago) would total approximately $10,000 today — $5,000 principal + $5,000 in interest.

These estimates assume simple interest (not compounding) at 10% per year. The 20-year column represents the statute of limitations (R&TC §19255).

Add penalties, fees, or subtract payments to estimate your actual balance. Use the calculator above for a personalized estimate.

What Is FTB Court-Ordered Debt?

FTB Court-Ordered Debt (COD) refers to restitution, fines, penalties, and other court-ordered financial obligations that the California Franchise Tax Board collects on behalf of the state's courts. When a California court orders a defendant to pay restitution to a victim or fines to the state, that debt may be assigned to FTB for collection if it remains unpaid.

The FTB acts as the state's centralized collection agency for court-ordered debts under California Revenue and Taxation Code Sections 19280 through 19282. This program consolidates debt collection across California's 58 counties, providing courts with a dedicated collection partner. Since its inception, the FTB has collected hundreds of millions of dollars in court-ordered debts.

Common Types of FTB Court-Ordered Debt

• Restitution: Payments ordered to compensate crime victims for financial losses.
• Criminal fines: Monetary penalties imposed as part of a criminal sentence.
• Court fees and costs: Administrative fees, filing fees, and other court-imposed costs.
• Traffic violations: Unpaid traffic fines that have been referred to FTB for collection.
• Restitution fines: Fines imposed in addition to restitution, often paid to the state.

How Debtors Typically Learn About FTB COD

Most debtors discover they have an FTB court-ordered debt through one of the following channels:

• Notice of Levy: A letter from FTB informing you that your wages or bank account will be garnished.
• Tax refund offset: Your California state tax refund is reduced or fully intercepted.
• Wage garnishment notice: Your employer receives an Earnings Withholding Order (EWO).
• Collection letter: A standard demand letter from FTB's COD Collections unit.
• Credit report impact: The debt appears on your credit report as a government claim.

When Does FTB Get Involved?

FTB typically enters the picture when a court-ordered debt remains unpaid for at least 90 days after the court's payment deadline and the total balance is at least $100. The court may refer the debt to FTB, which then begins collection activities. Once FTB takes over, all payment inquiries and arrangements should be directed to FTB, not the court.

FTB also works with the California Department of Motor Vehicles to suspend driver's licenses for certain delinquent debts, and they participate in the Interagency Intercept Collection (IIC) program to intercept tax refunds and other state payments.

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How FTB Calculates Your Debt — The Complete Formula

Understanding how FTB calculates your court-ordered debt is the first step to taking control of it. The calculation follows a straightforward formula, but most debtors are never shown the math. Here's the complete breakdown.

The Basic Formula

Let's break down each component:

1. Principal (The Original Judgment Amount)

This is the base amount the court ordered you to pay. It includes restitution, fines, and court costs. The principal does not change over time unless the court modifies the judgment.

2. Interest (10% Simple Interest Per Year)

California Code of Civil Procedure §685.010 governs interest on court judgments. For restitution orders, criminal fines, and most court-ordered fees, the rate is 10% per year simple interest. FTB calculates interest daily based on the number of days elapsed since the judgment date.

• Annual rate: 10% (fixed by law for most COD)
• Daily rate: 10% ÷ 365.25 = 0.027377% per day
• Interest calculation: Principal × Daily Rate × Days Elapsed
• Type: Simple interest only — does not compound

3. Penalties and Collection Fees

FTB may add collection fees and administrative costs to your COD account. These are governed by R&TC §§19280–19282 and the specific terms of your court referral — they are distinct from income-tax penalties. Any penalty or fee amounts assessed will appear on your FTB notice. Enter the total shown on your notice in the "Penalties & Fees" field of the calculator above for the most accurate estimate.

4. Payments Made

Any payments you have already made are subtracted from the total. Under California Code of Civil Procedure §695.220, payments are applied in a specific order: first to accrued interest, then to the outstanding principal. This means making a payment reduces accrued interest first; only excess payment beyond the accrued interest reduces the principal and future interest accrual.

Step-by-Step Calculation Example

What If You've Made Payments?

Under California law (CCP §695.220), payments are credited first to accrued interest, then to the principal. Here is how a partial payment affects the balance:

How to Verify Your Official Balance

While this calculator provides a reliable estimate, only FTB's official Statement of Account is legally binding. To get your official balance:

1. Call FTB Court-Ordered Debt Collections: (916) 845-4064 (weekdays 8 AM–5 PM) — have your debt account number ready.
2. Request a payoff quote: Ask for the "10-day payoff amount" — FTB will provide a binding quote good for 10 days.
3. Check online via My COD: Log in to your My COD account at ftb.ca.gov to view your balance and payment history.
4. Request in writing: Submit a written request via certified mail for a certified statement of account.

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Wage Garnishment Calculator — How Much Will FTB Take?

This tool estimates the amount FTB can withhold from your paycheck under an Earnings Withholding Order (EWO). Under SB 1477, the applicable garnishment rate depends on when the EWO was issued, not the date of the original judgment. The maximum amount is the lesser of the percentage cap or the minimum-wage multiplier floor.

This tool is part of our California Garnishment Calculators hub, which also covers child support income withholding, consumer-debt EWOs, and disposable earnings thresholds. For a step-by-step breakdown of the formula behind these limits, see our guide to California wage garnishment laws.

Gross Pay Per Pay Period *

$

Enter your total gross pay for one pay period (before any deductions).

Pay Frequency * — Select — Weekly Bi-Weekly (every 2 weeks) Semi-Monthly (twice per month) Monthly How often you are paid.

Mandatory Deductions (taxes, Social Security, etc.)

$

Total mandatory deductions per pay period: federal tax, state tax, Social Security, Medicare, etc.

EWO Issue Date * The date the Earnings Withholding Order was issued — not the original judgment date. This determines whether the 20% (post-SB 1477, on or after 9/1/2023) or 25% (pre-SB 1477) limit applies. Check the date on your EWO notice.

Applicable Minimum Hourly Wage *

$

Enter the applicable minimum wage — either the California state minimum wage or your local city/county minimum wage, whichever is higher. For 2025–2026, the California state minimum wage is $16.50/hour. Many cities (e.g., San Francisco, Los Angeles) have higher local minimums.

Calculate Garnishment Reset

Your Wage Garnishment Estimate

⚠️ Important: This is an estimate only. The actual garnishment amount may vary based on your specific payroll deductions, local minimum wage, exemptions, and FTB's final determination.

Gross Pay $0.00

Mandatory Deductions $0.00

Disposable Income $0.00

Garnishment Cap (% Method) $0.00

Garnishment Cap (Min. Wage Method) $0.00

SB 1477 Applied? —

Estimated Garnishment Per Pay Period (Lesser Of) $0.00

Understanding Your Garnishment Calculation

Formula (SB 1477, on or after 9/1/2023 EWO): The lesser of: (1) 20% of disposable earnings, OR (2) 40% of the amount by which disposable earnings exceed 48 × the applicable minimum hourly wage.

Formula (pre-SB 1477, before 9/1/2023 EWO): The lesser of: (1) 25% of disposable earnings, OR (2) 50% of the amount by which disposable earnings exceed 40 × the applicable minimum hourly wage.

SB 1477 applied? —

Disposable income: $0.00 per pay period.

Applicable rate: —

Important: The applicable rate is determined by the date the EWO was issued, not the original judgment date. Check your EWO notice for the issue date.

Employer obligation: Employers must comply with the Earnings Withholding Order (EWO) and remit garnished amounts to FTB. Failure to do so can result in employer liability.

SB 1477 Impact — How the New Law Changes Your Garnishment

Senate Bill 1477, which took effect on September 1, 2023, fundamentally changed how much FTB can garnish from your wages for court-ordered debts. If your Earnings Withholding Order (EWO) was issued on or after that date, you may benefit from a significant reduction in your garnishment amount.

Real-World Example: SB 1477 Savings

Does SB 1477 Apply to Your Garnishment?

SB 1477 applies based on the date the Earnings Withholding Order (EWO) was issued — not the date of your original judgment. Here's how to determine which rate applies:

• EWO issued on or after 9/1/2023: The 20% (lesser-of) rate applies.
• EWO issued before 9/1/2023: The 25% (lesser-of) rate applies.
• If you're unsure: Check the issue date printed on your EWO notice, or contact FTB Court-Ordered Debt Collections at (916) 845-4064.

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Payment Plan Estimator — What Will Your Monthly Payment Be?

If you can't pay your FTB court-ordered debt in full, you can request an installment agreement. This allows you to make monthly payments until the debt is satisfied. However, interest continues to accrue on the remaining balance, so the total amount you pay over time will be higher than the current balance.

Payment Plan Options Explained

FTB generally offers two types of payment plans for court-ordered debts:

• Short-term plan (under 12 months): Usually approved quickly with minimal financial review. Payments are higher but total interest is lower.
• Long-term plan (12+ months): Requires detailed financial disclosure. Payments are lower but total interest is higher.

FTB may also require you to sign a Stipulation and Agreement formalizing the payment terms. Failure to comply with the agreement can result in immediate garnishment or levy.

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Tax Refund Offset Estimator — Will FTB Take Your Refund?

One of the most common ways FTB collects court-ordered debts is through tax refund offset — intercepting your California state tax refund and applying it to your outstanding balance. This happens through the Interagency Intercept Collection (IIC) program.

How the Offset Process Works

1. You file your California state tax return. Your refund is calculated.
2. FTB checks the IIC database. This system tracks all outstanding court-ordered debts.
3. If a match is found, FTB intercepts the refund. The amount is applied to your debt.
4. You receive a notice of offset. FTB sends a letter explaining the amount taken and the remaining balance.
5. The remaining refund (if any) is issued to you. You receive the balance after the offset.

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Statute of Limitations Tracker — When Does Your Debt Expire?

California Revenue and Taxation Code §19255 limits how long FTB can collect a court-ordered debt. FTB has 20 years from the date the liability becomes "due and payable" — generally when the debt is referred to FTB — to collect. If the 20-year period expires, FTB can no longer enforce collection.

How the 20-Year Statute of Limitations Works

The statute of limitations for FTB court-ordered debt collection is governed by Revenue and Taxation Code §19255, which provides that after 20 years have elapsed from the date the liability becomes "due and payable," FTB may not collect that amount and the liability is abated.

Key points to understand:

• The 20-year period runs from the date the debt becomes "due and payable" — for COD, this is generally when the court refers the account to FTB, not necessarily the original judgment date.
• If a timely civil action is commenced (R&TC §19255(b)), the collection period extends until the judgment or claim is satisfied or becomes unenforceable.
• FTB's interpretation treats subsequent assessments (collection fees, penalties, interest) as potentially restarting the 20-year clock, which can effectively extend collection indefinitely. Legislative efforts to correct this interpretation have stalled.
• Bankruptcy filings temporarily pause the statute (automatic stay) but do not permanently eliminate the debt for non-dischargeable obligations.

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Offer in Compromise Estimator — Could You Settle for Less?

An Offer in Compromise (OIC) allows you to settle your FTB court-ordered debt for less than the full amount if you can demonstrate that paying the full amount would cause economic hardship or if there is doubt about the validity of the debt. Submit using Form FTB 4905.

Key fact: According to FTB annual reports, approximately 25–27% of individual Offers in Compromise are accepted. The key to approval is demonstrating a limited ability to pay based on income, expenses, and assets. FTB applies strict financial review standards. Professional assistance from a CPA or tax attorney can improve your chances.

Total FTB Debt *

$

Enter your total estimated FTB debt. Use the primary calculator above.

Monthly Income (gross) *

$

Enter your gross monthly income from all sources.

Monthly Expenses (living costs) *

$

Enter your total monthly living expenses: rent/mortgage, utilities, food, transportation, insurance, etc.

Total Assets (cash, property, investments)

$

Enter the total value of your assets (bank accounts, property, investments, etc.).

Estimate OIC Amount Reset

Your Offer in Compromise Estimate

⚠️ Important: This is a rough estimate only. FTB makes OIC determinations on a case-by-case basis using Form FTB 4905. Always consult a tax professional before submitting an OIC.

Total Debt $0.00

Monthly Disposable Income $0.00

Estimated OIC Amount $0.00

Potential Savings $0.00

Likelihood of Approval —

Understanding Your OIC Estimate

Estimated OIC amount: $0.00

Potential savings vs. full debt: $0.00

Likelihood of approval: —

Methodology: This estimate is based on FTB's ability-to-pay analysis, which evaluates your reasonable collection potential. The calculation considers:

• Disposable income (income minus allowable expenses)
• Asset value (cash, property, investments)
• Total debt amount

How to apply for an OIC: Submit Form FTB 4905 to FTB's Offer in Compromise Unit. Include all required financial disclosure documents. Processing takes approximately 3–6 months. The offer must be paid as a lump sum when FTB requests it upon approval.

What FTB considers: Ability to pay, income stability, asset value, expense reasonableness, and overall financial hardship.

FTB OIC Approval Criteria

FTB evaluates OIC applications based on two primary factors for court-ordered debt:

• Doubt as to Collectibility: Can FTB reasonably collect the full amount given the debtor's financial circumstances? This is the primary basis for most COD OICs.
• Effective Tax Administration: Would collecting the full amount cause severe economic hardship that is disproportionate to the government's interest?

What to Expect If Your OIC Is Approved

If FTB accepts your Offer in Compromise:

• You'll sign a settlement agreement.
• You must pay the agreed lump-sum amount when FTB requests it after approval.
• Interest and penalties stop accruing on the settlement amount once the agreement is accepted.
• The debt is fully resolved once the settlement payment is received.

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How to Dispute or Reduce Your FTB Court-Ordered Debt Balance

If you believe your FTB court-ordered debt balance is incorrect — or if you're struggling to pay — you have several options to dispute or reduce the amount you owe. Here's what you need to know.

Grounds for Disputing Your FTB COD Balance

• Incorrect principal amount: The court order amount is wrong or doesn't match your records.
• Incorrect interest calculation: FTB applied the wrong interest rate or incorrectly calculated the accrual period.
• Payments not credited: Payments you made were not applied to your account.
• Statute of limitations expired: The 20-year collection period has passed (verify with FTB).
• Debt was discharged in bankruptcy: Your court-ordered debt was included in a bankruptcy discharge (consult an attorney — restitution is typically non-dischargeable).
• Court order was modified or vacated: The original judgment was changed or overturned.

Step-by-Step: How to Dispute Your FTB Debt

1. Gather your documentation: Collect your court paperwork, payment receipts, and any correspondence from FTB.
2. Request a detailed statement of account: Call FTB Court-Ordered Debt Collections at (916) 845-4064 and ask for a complete statement showing principal, interest, fees, and payments.
3. Compare the statement to your records: Identify any discrepancies.
4. Submit a written dispute: Send a letter to FTB's COD Collections unit detailing the errors and including supporting documentation.
5. Follow up: FTB has 30–60 days to respond. Keep copies of all correspondence.

Options for Reducing Your Debt

1. Penalty Abatement

If you have a documented reason for late payment (such as a serious illness, natural disaster, or incorrect advice from FTB), you may request that FTB waive collection fees or assessments on reasonable-cause grounds.

2. Installment Agreement (Payment Plan)

As discussed above, FTB offers payment plans to spread the cost over time. While this doesn't reduce the principal, it makes the debt more manageable and can prevent aggressive collection actions.

3. Offer in Compromise (OIC)

FTB may accept a reduced amount to settle the debt if you can demonstrate financial hardship. Submit Form FTB 4905. The OIC process is detailed in the estimator above.

4. Collection Statute Expiration

If your debt has reached the 20-year collection limit under R&TC §19255 (and no tolling events have extended it), the debt may be uncollectible. You must request FTB confirm the expiration and release any liens or garnishments.

5. Bankruptcy

Certain court-ordered debts may be dischargeable in bankruptcy, though restitution and fraud-related debts are generally not dischargeable. Consult a bankruptcy attorney to understand your options.

How to Get Help

• Tax professional: A CPA or enrolled agent can help you communicate with FTB.
• Tax attorney: For complex disputes or litigation, consult a California tax attorney.
• Legal Aid: Low-income debtors may qualify for free legal assistance.
• FTB Taxpayer Advocate: FTB has an advocate office to assist with unresolved issues.

FTB Court-Ordered Debt Collections: (916) 845-4064 (weekdays 8 AM–5 PM)

FTB Taxpayer Advocate Services: (800) 883-5910 (weekdays 8 AM–5 PM)

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Frequently Asked Questions About FTB Court-Ordered Debt

Get answers to the most common questions about FTB court-ordered debt calculations, garnishment, and payment options.

What is the FTB Court-Ordered Debt (COD) program? +

The FTB Court-Ordered Debt (COD) program collects restitution, fines, penalties, and other court-ordered financial obligations on behalf of California courts. Under Revenue and Taxation Code Sections 19280–19282, the FTB acts as the state's centralized collection agency. Common court-ordered debts include unpaid traffic tickets, victim restitution, probation fees, and other court-imposed fines. For a debt to be referred, it must generally be at least $100 in total and at least 90 days delinquent. Once FTB takes over, the board uses wage garnishment, bank levies, tax refund offsets, and other enforcement tools to collect the amount owed.

How does FTB calculate interest on court-ordered debt? +

FTB applies 10% simple interest per year on the unpaid principal of most court-ordered debts (restitution, criminal fines, court fees), as required by California Code of Civil Procedure §685.010. The interest is calculated daily using the formula: Principal × 10% × (Days Since Judgment ÷ 365.25). Interest does not compound — it is calculated only on the principal balance, not on accumulated interest.

Note: For certain civil judgments entered on or after January 1, 2024 involving personal consumer debt under $50,000 or medical expense claims under $200,000, a reduced 5% rate may apply under CCP §685.010(a)(2). This exception generally does not apply to restitution or criminal fines. Contact FTB at (916) 845-4064 to confirm the rate on your account.

What is the current FTB court-ordered debt interest rate? +

The current statutory interest rate for most FTB court-ordered debt (restitution, criminal fines, court fees) is 10% per annum. This rate is fixed by California Code of Civil Procedure §685.010 and does not change with market conditions. For certain civil judgments entered on or after January 1, 2024 involving personal consumer debt under $50,000 or medical expense claims under $200,000, a reduced 5% rate may apply under CCP §685.010(a)(2). Contact FTB Court-Ordered Debt Collections at (916) 845-4064 to confirm which rate applies to your specific debt.

Can FTB garnish my wages without a court order? +

Yes. FTB can issue an Earnings Withholding Order (EWO) to your employer without obtaining a new court order. Once a debt is referred to FTB for collection under R&TC §19280, they have administrative authority to garnish wages, levy bank accounts, and offset tax refunds. You will receive written notice before garnishment begins, but no additional court hearing is required.

How much of my paycheck can FTB garnish for court-ordered debt? +

Under SB 1477 (effective September 1, 2023), FTB Earnings Withholding Orders (EWOs) issued on or after September 1, 2023 are limited to the lesser of: (1) 20% of the individual's disposable earnings for the pay period, or (2) 40% of the amount by which disposable earnings exceed 48 times the applicable state or local minimum hourly wage.

For EWOs issued before September 1, 2023, the older limit applied: the lesser of 25% of disposable earnings or 50% of earnings above 40 times the minimum wage. The applicable rate is determined by the date the EWO was issued, not the date of the original judgment. Disposable income is calculated as gross pay minus mandatory deductions (federal/state tax, Social Security, Medicare, etc.).

How long does FTB have to collect court-ordered debt? +

FTB has 20 years from the date the debt becomes "due and payable" to collect court-ordered debts under Revenue and Taxation Code §19255. For COD debts, the clock generally starts when the court refers the account to FTB — not necessarily the original judgment date. The statute can also be extended if a civil action is commenced (R&TC §19255(b)), by bankruptcy tolling, or — under FTB's current interpretation — when new fees or assessments are added to the account. If the 20-year period expires without extension, FTB can no longer enforce collection, though the debt may still appear on your credit report.

Will FTB take my tax refund for court-ordered debt? +

Yes. FTB can intercept your California state tax refund through the Interagency Intercept Collection (IIC) program. There is no minimum threshold — FTB can take your entire refund if you have an outstanding balance. The intercepted amount is applied to your debt balance. Any remaining refund is issued to you. If the debt exceeds the refund, you will still owe the difference.

Can I settle my FTB court-ordered debt for less than I owe? +

Yes — through an Offer in Compromise (OIC). FTB may accept less than the full amount if you can demonstrate that paying the full balance would cause economic hardship or if there is doubt about the debt's validity. Submit Form FTB 4905 with detailed financial disclosure. According to FTB annual reports, individual OIC acceptance rates are approximately 25–27%. Professional assistance from a tax attorney or CPA can improve your chances.

What is an Offer in Compromise and how does it work? +

An Offer in Compromise (OIC) is a settlement agreement between you and FTB where you pay a reduced lump-sum amount to resolve the debt. Apply by submitting Form FTB 4905 with full financial disclosure (income, expenses, assets). FTB evaluates your reasonable collection potential — what they can realistically recover from you over time. Processing takes 3–6 months. If approved, you must pay the agreed amount in a lump sum when FTB requests it. Approval rates for individuals are approximately 25–27% per FTB annual reports, and are higher with professional representation. If you do not complete the payment, FTB may reinstate the full original balance.

How do I stop an FTB wage garnishment? +

You can stop an FTB wage garnishment by: (1) Paying the debt in full — once paid, FTB will release the EWO; (2) Entering into an installment agreement — FTB may stop garnishment if you agree to regular payments; (3) Filing for bankruptcy — the automatic stay stops garnishment (but restitution debts may not be dischargeable); or (4) Demonstrating financial hardship — FTB may reduce or suspend garnishment in extreme cases. Contact FTB Court-Ordered Debt Collections at (916) 845-4064 (weekdays 8 AM–5 PM) to discuss your options.

What is SB 1477 and how does it affect my garnishment? +

SB 1477, effective September 1, 2023, reduced the maximum wage garnishment for court-ordered debt. For FTB Earnings Withholding Orders issued on or after September 1, 2023, the maximum is the lesser of: (1) 20% of disposable earnings, or (2) 40% of the amount by which disposable earnings exceed 48 times the applicable state or local minimum hourly wage. This is a reduction from the prior formula: lesser of 25% or 50% above 40× minimum wage. The applicable rate is based on the EWO issue date, not the original judgment date. Interest (10%), the collection statute, and other enforcement tools are unchanged by SB 1477.

What happens if I can't pay my FTB court-ordered debt? +

If you cannot pay your FTB court-ordered debt, FTB may take one or more of the following actions: wage garnishment (up to 20% of disposable income for EWOs issued on or after 9/1/2023), bank levy, tax refund offset, property lien, license suspension (for large debts), and credit reporting. To avoid escalation, contact FTB Court-Ordered Debt Collections at (916) 845-4064 as soon as you receive a notice to discuss payment plans, hardship relief, or other options. Acting proactively before FTB escalates collection gives you significantly more options.

Can FTB collect debt if I filed for bankruptcy? +

Filing for bankruptcy triggers an automatic stay that stops FTB collection activities — including wage garnishment, bank levies, and refund offsets — while the case is pending. However, not all court-ordered debts are dischargeable. Restitution orders, fraud-related debts, and most criminal fines typically survive bankruptcy and remain collectible after the case closes. Interest may continue to accrue on non-dischargeable debts during the bankruptcy process. Consult a bankruptcy attorney to understand how your specific debt will be treated before relying on bankruptcy as a strategy.

Still have questions? Contact FTB Court-Ordered Debt Collections at (916) 845-4064 (weekdays 8 AM–5 PM) or visit ftb.ca.gov.

Methodology — How We Calculate FTB Court-Ordered Debt

Our FTB court-ordered debt calculator uses the official statutory formula established by California law. Here's a transparent breakdown of our methodology.

Calculation Formula

Total Debt = Principal + (Principal × 10% × Days Since Judgment ÷ 365.25) + Penalties + Fees – Payments Made

Payment Application Under California Law

Under California Code of Civil Procedure §695.220, payments are credited first to accrued interest, then to the outstanding principal. Our primary calculator applies total payments as a deduction from the gross estimated balance (a simplified approach). For a precise payment-by-payment breakdown showing how each payment reduces interest and then principal, request an official Statement of Account from FTB at (916) 845-4064.

Data Sources and Citations

• Interest rate: California Code of Civil Procedure §685.010 — establishes the 10% statutory interest rate for most court-ordered debts (restitution, criminal fines, court fees). A 5% rate applies to certain civil personal debt and medical expense judgments entered on or after January 1, 2024 under CCP §685.010(a)(2).
• Garnishment limits: CCP §706.050 as amended by SB 1477 (Ch. 849, Stats. 2022, effective 9/1/2023) — for EWOs issued on or after 9/1/2023, the lesser of 20% of disposable earnings or 40% above 48× minimum wage. Confirmed by FTB Public Service Bulletin 23.17.
• Statute of limitations: California Revenue and Taxation Code §19255 — 20-year collection window from when the debt becomes "due and payable." Subject to tolling and extension.
• Collection fees: Governed by R&TC §§19280–19282 and the terms of each court referral agreement. Specific fee amounts appear on FTB notices.
• Payment application order: California Code of Civil Procedure §695.220 — payments credited to accrued interest first, then principal.
• Collection authority: Revenue and Taxation Code §§19280–19282 — FTB's authority to collect court-ordered debts.

Calculator Assumptions

• Simple interest: FTB uses simple interest (not compound) on court-ordered debts.
• 365.25 days/year: Standard legal calculation for prorated interest.
• Payment deduction: Total payments are deducted from the gross estimated balance as a simplified calculation. In practice, under CCP §695.220, payments apply first to accrued interest, then to principal.
• Penalty assessment: Penalties and fees are included only if entered by the user — they are not automatically assessed.
• Garnishment formula: The garnishment calculator applies both prongs of the CCP §706.050 "lesser of" formula and returns the lower of the two results.

Limitations

• This is an estimate only — not a binding statement of account.
• The official balance is determined by FTB and may differ due to court modifications, administrative adjustments, or specific case factors.
• Interest rates, laws, and FTB procedures may change over time.
• This tool does not model payment-by-payment interest recalculation (interest-first application per CCP §695.220). For precise calculations with payment history, use FTB's official tools or consult a professional.

Update Frequency

This calculator and its data are reviewed quarterly to ensure compliance with current laws and rates. Last updated: July 2026.

Official FTB Resources

• FTB Court-Ordered Debt Collections (official page)
• FTB Public Service Bulletin 23.17 — SB 1477 EWO Changes
• FTB Earnings Withholding Orders
• California Courts — COD Program Information

Disclaimer: AKCalc is not affiliated with the California Franchise Tax Board, the State of California, or any government agency. Our calculators are for educational and estimation purposes only. They do not constitute legal, financial, or tax advice. Always consult with a qualified professional for advice specific to your situation.

Related Calculators

Explore our other California garnishment and debt calculators:

• California Earnings Withholding Order (EWO) Calculator 2026 — Consumer debt garnishment under CCP §706.050, including the SB 1477 limits
• California Disposable Earnings Calculator — Calculate disposable earnings first, since it determines how much FTB can withhold
• California Child Support Wage Garnishment Calculator — Income Withholding Orders (IWO) take priority over other garnishments

Note: These internal links are provided for convenience and additional guidance. Always verify calculations and legal information with official sources.