---
title: What Is the Difference Between a Levy and a Lien? | TaxTruce
url: https://taxtruce.com/answers/levy-vs-lien
updated: 2026-10-29
---

# What is the difference between a levy and a lien?

Updated October 8, 20262 sourcesTaxTruce team[Fact checked](/editorial-standards)

The short answer

A lien is a legal claim against your property to secure the debt. A levy actually takes the property to pay it. A lien can hurt your credit and make it hard to sell or borrow. A levy can take wages, bank accounts, retirement money, or property like a car or house.

## Sources

1. [IRS: What is a levy?](https://www.irs.gov/businesses/small-businesses-self-employed/what-is-a-levy)
2. [IRS: Understanding a federal tax lien](https://www.irs.gov/businesses/small-businesses-self-employed/understanding-a-federal-tax-lien)

Run the numbers with our [free tax tools](/tools), like the penalty and payment plan math.