What Property Is Exempt From Creditors in New York?

In New York, a judgment creditor cannot take everything you own. State law—mainly Civil Practice Law and Rules (CPLR) sections 5205 and 5206—lists property that is exempt from seizure, and the dollar amounts are unusually generous because New York indexes its homestead exemption to inflation and ties wage and bank-account protections to the state minimum wage, which is well above the federal floor. The single most important New York-specific rule is the Exempt Income Protection Act (EIPA), in effect since 2009: when a creditor freezes your bank account, the bank must automatically leave a protected baseline untouched and must mail you exemption-claim forms—your benefits do not vanish just because a restraining notice arrives. This is what makes New York different from many states, where you must act before any money is shielded.

The Homestead Exemption: Protecting Your Home

New York's homestead exemption (CPLR 5206) shields equity in a home, condominium, co-op, or mobile home you occupy as a principal residence. Unlike some states, the amount depends on the county where the property sits. As of 2026 the figures are tiered—the highest tier covers the downstate counties (the five New York City boroughs plus Nassau, Suffolk, Rockland, Westchester, and Putnam), a middle tier covers counties such as Dutchess, Albany, Columbia, Orange, Saratoga, and Ulster, and a lower tier covers the remaining counties. These amounts are adjusted for the Consumer Price Index every three years, so the exact dollar figure changes over time. Confirm the current tier amount for your county before relying on it, because using a stale number can cost you thousands in protected equity.

The homestead exemption protects equity, not the whole house. If your equity exceeds the exemption, a creditor may force a sale—but you keep the exempt amount in cash. It does not stop a mortgage lender foreclosing, and it does not stop tax liens or a mechanic's lien.

Wages and Income Execution

Federal law (the Consumer Credit Protection Act) caps wage garnishment at 25% of disposable earnings, or the amount by which weekly disposable earnings exceed 30 times the federal minimum wage of $7.25. New York is more protective. Under CPLR 5231, an income execution generally cannot exceed 10% of gross income, and the 25% disposable-earnings limit still applies. Critically, no garnishment is allowed at all if it would push your weekly take-home below 30 times the New York minimum wage—a far higher shield than the federal version because New York's minimum wage is much higher than $7.25.

As of 2026, New York's minimum wage is approximately $17.00 per hour in New York City, Long Island, and Westchester, and roughly $16.00 per hour in the rest of the state, with scheduled annual increases. Because this number rises every year, verify the current rate with the New York State Department of Labor before calculating your protected wages. Separately, CPLR 5205(d) exempts 90% of earnings for personal services rendered within the prior 60 days. New York also forbids garnishing wages on more than one income execution at a time in most circumstances.

Retirement Accounts and Pensions

Retirement savings are strongly protected in New York. CPLR 5205(c) exempts qualified retirement plans—401(k) and 403(b) plans, IRAs (traditional and Roth), pensions, and similar trusts—from the claims of judgment creditors. Federal law (ERISA) independently shields most employer-sponsored plans. The main exceptions are funds owed for child support, spousal maintenance, or certain tax debts. Money keeps its exempt character after it is rolled over, but once you withdraw retirement funds into an ordinary checking account, you should be ready to prove the source if a creditor levies the account.

Public Benefits: Social Security, Unemployment, and More

New York fully exempts most public and need-based benefits from creditor seizure. Under CPLR 5205 and related statutes, the following cannot be taken to satisfy an ordinary money judgment:

• Social Security retirement, survivor, and SSI payments
• Unemployment insurance benefits
• Workers' compensation and disability benefits
• Public assistance and Supplemental Nutrition Assistance Program (SNAP) benefits
• Veterans' benefits
• Child support and spousal maintenance you receive

Federal law adds a powerful backstop: under U.S. Treasury rules, when a bank receives a garnishment order it must automatically protect two months' worth of federal benefit payments (such as Social Security or VA benefits) that were direct-deposited into the account, without you filing anything.

Vehicle, Household Goods, and the Cash Exemption

New York's personal-property exemptions under CPLR 5205(a) cover the everyday items a household needs. These include household furniture, a refrigerator, a television, a radio, a computer and cell phone, clothing, cooking utensils, a wedding ring, schoolbooks, religious texts, and a domestic animal with food—subject to an overall aggregate cap. A motor vehicle is exempt up to a set value (with a higher limit if the vehicle is equipped for a person with a disability). There is also a cash exemption—a wildcard available if you do not claim the homestead exemption—and tools of your trade or profession are protected up to a limit. Like the homestead figure, these dollar amounts are indexed and adjusted periodically, so check the current CPLR 5205 amounts rather than relying on an older guide.

How the EIPA Protects Your Bank Account

When a creditor serves a restraining notice (CPLR 5222) or a levy on your bank, the Exempt Income Protection Act forces the bank to do two things automatically. First, it must leave a baseline amount in the account untouched—one figure tied to 240 times the state minimum wage, and a higher figure when the account contains direct-deposited exempt benefits such as Social Security or wages. Because these baselines move with the minimum wage and with periodic CPI adjustments, confirm the current protected amounts with a legal-aid office or the court. Second, the bank must mail you an exemption-claim form and a checklist of exempt funds within a few days.

To claim additional exempt money above the automatic baseline, fill out and return the exemption-claim form to the bank and the creditor's attorney, typically within about 20 days, attaching proof such as benefit award letters or pay stubs. If the creditor does not object within the statutory window, the bank must release the funds. If they object, the dispute goes before the court.

How to Enforce Your Exemptions

Exemptions are not always self-executing for assets other than wages and bank accounts. If a creditor or marshal targets exempt property, you can:

• Serve a written exemption claim on the creditor, marshal, or sheriff identifying the property and the statute that protects it;
• Move the court for a protective order under CPLR 5240, which gives a judge broad power to deny, limit, or modify any enforcement that is unfair or reaches exempt property;
• Move to vacate the restraining notice or income execution if it improperly captures exempt funds.

Keep records that trace exempt money—direct-deposit statements, award letters, and pay stubs—because the burden often falls on you to show that funds in a bank account came from an exempt source.

Federal Baseline and Where to Verify

Federal law sets a floor that every state must meet: the FDCPA governs debt-collector conduct, the FCRA governs credit reporting, and the 25% wage-garnishment cap and the Treasury two-month benefit protection apply nationwide. New York layers stronger protections on top of these. To confirm current figures and your rights, consult the official statutes (CPLR Article 52), a local legal-services organization, and the New York State Attorney General's Bureau of Consumer Frauds and Protection, which handles consumer complaints and publishes guidance. Because dollar amounts in New York's exemption laws are indexed and change on a schedule, always verify the current numbers before acting—this article explains the rules, but the official source controls.

Official New York Sources

This page is based on New York law. Limits and deadlines change — verify the current details directly with the official New York sources below. This is general legal information, not legal advice.

• New York State Attorney General - Consumer Issues (Consumer Frauds and Protection Bureau) — official New York agency.
• File a complaint: Consumer issues - New York State Attorney General
• New York General Business Law Section 349 - Unfair, deceptive, or abusive acts and practices

Federal law also applies. Federal laws like the Fair Debt Collection Practices Act and Fair Credit Reporting Act protect you nationwide, on top of New York’s own rules.