Learn why state tax debt can move fast, how wage garnishment works, and what options may help protect your paycheck before things get worse. When people think about tax debt, they usually think about the IRS first. IRS notices, federal tax liens, wage garnishments, and bank levies are scary enough. But many taxpayers do not realize that state tax agencies can also be aggressive when collecting unpaid taxes. In some cases, dealing with the state can feel even more frustrating than dealing with the IRS.