August 2026 Bankruptcy Rule Report: Arizona & Washington Exemptions, Median Income & Means-Test Standards
Reviewed August 15, 2026
Our August 2026 review of the official sources for Arizona and Washington: current bankruptcy exemption amounts, state median family income, and the IRS and U.S. Trustee means-test expense standards. Every figure below is listed with the statute or official table it comes from, its effective date, and a direct link to the government source.
Arizona
homestead exemption
$437,600 (Equity)A.R.S. § 33-1101 ↗ · effective January 1, 2026
The base amount was increased significantly by Proposition 209 (effective 2022) and is now adjusted annually for inflation on January 1st.
motor vehicle exemption
$16,500 (Standard); $27,500 (Physical disability)A.R.S. § 33-1125(8) ↗ · effective January 1, 2026
These figures were adjusted for inflation on January 1, 2026. The exemption applies to a single vehicle’s equity.
household goods / personal property exemption
$16,500 (Aggregate fair market value)A.R.S. § 33-1123 ↗ · effective January 1, 2026
Includes furniture, furnishings, and consumer electronics. Adjusted annually for inflation.
tools of the trade exemption
$5,600A.R.S. § 33-1130 ↗ · effective January 1, 2026
Covers tools, equipment, and books used in a trade or profession. The statutory base is $5,000, adjusted for inflation in 2026.
wage garnishment limit
Lesser of 10% of weekly disposable earnings OR the amount by which disposable earnings exceed 60 times the highest applicable minimum wage (federal, state, or local).A.R.S. § 33-1131 ↗ · effective December 5, 2022 (Current through 2026)
In 2026, the Arizona state minimum wage is $15.15/hour. Therefore, the weekly "protected" floor is $909.00 (60 x $15.15).
state median family income
1 Person: $73,935; 2 People: $89,027; 3 People: $104,965; 4 People: $121,174 (Add $11,100 for each additional person)U.S. Trustee Program - Median Family Income Tables ↗ · effective April 1, 2026
Figures are based on family size for the State of Arizona.
IRS national and local expense standards
National Standards: $867/month (1 Person), $1,478/month (2 People); Health Care: $87 (under 65), $158 (65+); Local Housing (Maricopa): $1,961 (1 Person); Local Transp. (West): $345 (1 car operating), $617 (2 cars operating), $619 (ownership per car)IRS Collection Financial Standards / U.S. Trustee Program Data ↗ · effective July 15, 2026
These standard figures were updated recently for cases filed on or after July 15, 2026.
Washington
Homestead Exemption
Greater of $125,000 or the county median sale price of a single-family home in the preceding calendar year.RCW 6.13.030 ↗ · effective May 12, 2021
This was recently adjusted (2021) from a flat $125,000 cap to a floating limit based on local market data provided by the Washington Center for Real Estate Research. In high-cost counties like King, the exemption can exceed $850,000.
Motor Vehicle Exemption
$3,250 for a single individual; $6,500 for a community (married couple) for two vehicles.RCW 6.15.010(1)(d)(iii) ↗ · effective Current as of 2026
Debtors in bankruptcy frequently use the $10,000 "Wildcard" (RCW 6.15.010(1)(d)(ii)) to protect additional vehicle equity.
Household Goods / Personal Property Exemption
$6,500 per individual (includes provisions and fuel).RCW 6.15.010(1)(c) ↗ · effective Current as of 2026
This is an aggregate limit for household goods, appliances, and furniture. Separate exemptions exist for jewelry ($3,500) and libraries ($3,500) under RCW 6.15.010(1)(a)-(b).
Tools of the Trade Exemption
$15,000RCW 6.15.010(1)(e) ↗ · effective Current as of 2026
Applies to tools, instruments, materials, and supplies used to carry on the debtor's trade.
Wage Garnishment Limit
For consumer debt, the greater of 80% of disposable earnings or 35 times the state minimum wage (estimated $17.50+ for 2026).RCW 6.27.150 ↗ · effective Current as of 2026
For non-consumer debts, the exemption is 75% or 35x the federal minimum wage. Washington’s state-specific protections for consumer debt were significantly strengthened in 2021.
State Median Family Income (Means Test)
1 Person: $86,314; 2 People: $104,354; 3 People: $128,360; 4 People: $152,553 (Add $11,100 for each individual in excess of 4)U.S. Trustee Program - Median Family Income Data ↗ · effective April 1, 2026
Figures apply to cases filed in Washington on or after April 1, 2026.
IRS National and Local Expense Standards
National Standards (Food, Clothing, etc.): $890 to $2,300+ depending on household size. Local Standards (Housing/Utilities): County-specific.U.S. Trustee Program - IRS Expense Standards ↗ · effective July 15, 2026
These figures were adjusted recently (effective July 15, 2026) to reflect updated Consumer Price Index (CPI) data for 2026.
How to use this report
Each row lists the figure we found, the statute or official table it comes from, and its effective date. Click the citation to open the government source. Exemption amounts, median income tables, and means-test expense standards are adjusted on their own schedules, so a figure that was current this month may change next month — always confirm at the linked source.
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