United States · Federal · IRS collection
IRS collection limits 2027.
The dollar thresholds that govern passport certification, property exempt from levy and tax liens in 2027.
Short answer: For 2027 a federal tax debt must be greater than $68,000 to count as seriously delinquent for passport purposes. The IRS cannot levy household goods and personal effects worth up to $12,370 or books and tools of a trade worth up to $6,180. A lien is not valid against a casual purchaser of personal property for less than $2,070 or a mechanic who repaired a home for no more than $10,340.
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The 2027 amounts
Revenue Procedure 2026-35 indexes a group of collection thresholds for calendar year 2027.
| Item | Section | 2026 | 2027 |
|---|---|---|---|
| Seriously delinquent tax debt for passport action: greater than | 7345 | $66,000 | $68,000 |
| Household goods and personal effects exempt from levy, up to | 6334(a)(2) | $11,980 | $12,370 |
| Books and tools of a trade exempt from levy, up to | 6334(a)(3) | $5,990 | $6,180 |
| Lien not valid against casual purchaser of personal property for less than | 6323(b)(4) | $2,000 | $2,070 |
| Lien not valid against a mechanic lienor if the contract is no more than | 6323(b)(7) | $10,010 | $10,340 |
| Dollar amount in the wage levy exemption calculation | 6334(d)(4)(B) | $5,300 | $5,450 |
When a passport can be affected
Section 7345 has three requirements. The debt must be assessed and legally enforceable; it must be greater than the indexed dollar amount; and either a notice of lien has been filed and the taxpayer's hearing rights are exhausted or have lapsed, or a levy has been made. The statute carves out debts being paid on time under an installment agreement or offer in compromise, and debts where collection is suspended because a collection due process hearing or an innocent spouse claim is pending. The base figure in the statute is $50,000, and the indexed amount for 2027 is $68,000.
Property the IRS cannot levy
Section 6334 lists property exempt from levy. Two of the exemptions have dollar caps that are indexed: fuel, provisions, furniture and other household personal effects (with personal-use arms, livestock and poultry) up to $12,370 in 2027, and books and tools needed for the taxpayer's trade or business up to $6,180.
What changed from 2026
Each amount rose by roughly 3 percent. The passport threshold went from $66,000 to $68,000, the household goods exemption from $11,980 to $12,370, the tools exemption from $5,990 to $6,180, the lien thresholds from $2,000 and $10,010 to $2,070 and $10,340, and the wage-levy amount from $5,300 to $5,450. The structure of section 7345 did not change.
Worked example (2027)
A taxpayer has $75,000 of assessed federal tax debt in 2027, including penalties and interest, and the IRS has levied on a bank account. The debt is over $68,000, a levy has been made and no installment agreement is in place, so the debt meets the seriously delinquent definition and could be certified for passport action. If the taxpayer were on a timely installment agreement, the exception would apply. A taxpayer with a $65,000 debt is under the $68,000 amount whatever else is true. A levy on a household with $10,000 of furniture could not reach that furniture, because $10,000 is under the $12,370 exemption.
Common mix-ups
- Over $68,000, not $68,000 or more. The statute says greater than.
- It includes penalties and interest. The debt counts everything assessed, not only the tax.
- A lien or levy is also needed. A large debt alone is not enough.
- An installment agreement stops it. A debt paid on time under an agreement is excluded.
- Exempt property is capped by value. Household goods above $12,370 are not fully protected.
Method
The checker compares the amount you enter with $68,000, asks whether a lien with exhausted hearing rights or a levy exists, and whether an exception applies. All three must line up for a yes. It does not read your account transcript or know what the IRS has certified. Figures were read on November 9, 2026.
What this does not cover
- Whether the IRS has actually certified a debt to the State Department.
- How the wage-levy exempt amount is turned into a weekly figure.
- State collection rules and state exemptions from levy.
Figures read from the sources below on November 9, 2026. Last updated November 9, 2026.
Sources
- IRS Revenue Procedure 2026-35, section 3.53 (lien) (retrieved November 9, 2026); IRS Revenue Procedure 2026-35, section 3.54 (property exempt from levy) (retrieved November 9, 2026); IRS Revenue Procedure 2026-35, section 3.65 (passport) (retrieved November 9, 2026)
- IRS Revenue Procedure 2025-32, section 4.48 to 4.50 and 4.60 (the 2026 amount) (retrieved November 9, 2026)
- 26 U.S.C. section 7345 (revocation or denial of passport in case of certain tax delinquencies), text at Cornell Legal Information Institute (retrieved November 9, 2026)
Frequently asked questions
What is the 2027 passport tax debt threshold?
A federal tax liability must be greater than $68,000 to be seriously delinquent tax debt under section 7345 for 2027.
What else is required for passport action?
A notice of lien with exhausted hearing rights, or a levy, and no exception such as a timely installment agreement.
What property is exempt from levy in 2027?
Household goods and personal effects up to $12,370 in value, and books and tools of a trade up to $6,180.
What was the passport threshold for 2026?
$66,000.
Does the debt include interest and penalties?
Yes. The statute looks at the assessed legally enforceable liability.
Does an installment agreement prevent passport action?
A debt being paid in a timely manner under an installment agreement or offer in compromise is excluded from the definition.
What is the lien threshold for a casual purchase?
A lien is not valid against a purchaser of personal property in a casual sale for less than $2,070 in 2027.
Not legal or tax advice
This page is general information from an unofficial guide, not legal, payroll or tax advice. Tax law changes and your facts may differ. Confirm figures with the IRS or a tax professional before you file or set payroll. Nothing you type is sent anywhere.