Texas Family Code 154: Net Resources, Percentages, and Duration

The Texas child support guidelines take a flat percentage of the paying parent’s monthly net resources: 20% for one child, 25% for two, 30% for three, 35% for four, and 40% for five, with the percentage applied only to the first $11,700 of monthly net resources.¹² The percentage is a presumption a judge can adjust, and the whole calculation turns on what the statute counts as “net resources,” so that’s the piece to understand first.

What Counts as Net Resources

Section 154.062 defines net resources more broadly than most parents expect. It includes wages, salary, commissions, overtime, tips, bonuses, dividends, self-employment income, rental income, retirement benefits, Social Security benefits other than SSI, workers’ compensation, unemployment benefits, severance pay, trust income, capital gains, gifts, prizes, and spousal maintenance received from a prior relationship.³ Money coming in on a regular basis almost always counts.

Excluded: return of principal or capital, accounts receivable, TANF payments, foster care payments, and Supplemental Security Income.³

Once total resources are added up, the court subtracts a specific list of items to get to net resources:

Social Security taxes
Federal income tax calculated as if the parent were a single filer claiming one personal exemption and the standard deduction
State income tax (effectively zero in Texas, but relevant for income earned in another state)
Union dues
Court-ordered health and dental insurance costs for the child
Mandatory retirement contributions when the parent does not pay Social Security taxes

Those are the only allowed deductions. Voluntary 401(k) contributions, credit card payments, and car loans do not reduce net resources.³

The Guideline Percentages

Section 154.125 sets the standard schedule for monthly net resources up to $11,700:¹

1 child: 20%
2 children: 25%
3 children: 30%
4 children: 35%
5 children: 40%
6 or more: not less than the amount for five children

If the paying parent’s net resources exceed $11,700 per month, the court can order more than the guideline amount based on the proven needs of the child and the income of both parties.² The cap is periodically adjusted and published by the Office of the Attorney General.

Low-Income Schedule

When monthly net resources are below $1,000, each percentage drops by five points:¹

1 child: 15%
2 children: 20%
3 children: 25%
4 children: 30%
5 children: 35%
6 or more: not less than the amount for five children

Adjustment for Children in Another Household

If the paying parent has a legal duty to support other children from a different relationship, the guideline percentage is reduced. Section 154.129 sets out a full table of adjusted percentages. As one example, a parent with one child before the court and one other child elsewhere pays 17.50% instead of 20%; with two children before the court and two elsewhere, 20.63% instead of 25%.⁴ The reductions grow with the total number of children across households, and a separate low-income version applies when monthly net resources are under $1,000.

When a Judge Can Order a Different Amount

The guideline number is a presumption, not a ceiling or a floor. Section 154.123 gives the court seventeen factors it may weigh when either parent argues the guideline amount would be unfair, including:⁵

the age and needs of the child
the amount of time the paying parent actually spends with the child
child care costs either parent pays to stay employed
travel expenses for custody exchanges when parents live far apart
employer-provided benefits like a car or housing that reduce a parent’s real expenses
significant debts either parent carries
intentional unemployment or underemployment, which can lead the court to impute higher income

A judge who deviates from the guideline amount has to state specific reasons in the order explaining why the standard amount would not serve the child’s best interest.⁵ Without those written findings, the deviation can be reversed on appeal.

Medical and Dental Support Are Always Part of the Order

Every Texas child support order must include medical and dental coverage. The court looks at which parent has access to health insurance, prefers employer-sponsored plans, and weighs cost against quality and accessibility.⁶

The statute caps what qualifies as a “reasonable cost”:

Health insurance: no more than 9% of the paying parent’s annual resources⁷
Dental insurance: no more than 1.5% of the paying parent’s annual resources⁸

If the paying parent has affordable coverage at work, the court orders that parent to enroll the child. If not, the court may order the other parent to provide coverage and have the paying parent reimburse the cost. When no private insurance is available at a reasonable cost, the court can order cash medical support instead, capped at the same 9%.⁶ Those cash payments often offset costs when the child is on Medicaid or CHIP.

How Long Support Lasts

Under Section 154.001, child support ends when the child turns 18 or graduates from high school, whichever is later.⁹ A 17-year-old who graduates early is still owed support until age 18; an 18-year-old still enrolled and on track to graduate is still owed support until graduation. Support also ends if the child marries, dies, or is legally emancipated before 18.

There is one significant exception. Section 154.302 allows a court to order indefinite support for an adult child with a mental or physical disability that prevents self-support and requires substantial care, so long as the disability (or its known cause) exists on or before the child’s 18th birthday. The court can direct that payments go into a special needs trust to preserve the child’s eligibility for Medicaid or SSI, though that option is not available in Title IV-D cases handled through the Attorney General’s office.¹⁰

How Payments Move

Texas presumes automatic payroll withholding. Section 154.007 requires every support order to include a withholding directive, and the court or the Attorney General’s office sends the notice to the paying parent’s employer.¹¹ Employers do not send money to the other parent directly. Withheld amounts go to the Texas State Disbursement Unit in San Antonio, which records each payment and distributes funds by direct deposit or state-issued debit card.¹² That routing gives both parents a paper trail.

Federal law caps total withholding at 50% of disposable earnings if the paying parent is supporting a second family, 60% if not, with an extra 5% allowed when payments are more than 12 weeks behind. When the employer is in another state, that state’s withholding rules apply, not the issuing state’s.

Changing the Amount Later

Support orders can be modified. Under Section 156.401, either parent can ask a court to change the amount when the circumstances of the child or either parent have materially and substantially changed since the last order.¹³ Job loss, a significant raise, a new medical condition, or a new dependent can all qualify.

There is also a time-based path. If three years have passed since the last order and the current amount differs by at least 20% or $100 from what the guidelines would produce today, a parent can seek modification without proving a change in circumstances.¹³

The statute treats incarceration lasting more than 180 days as a material and substantial change, both on the way in and the way out.¹³ A parent going to prison can request a reduction rather than watch arrears grow, and a parent leaving prison should expect the amount to be recalculated.

Consequences of Falling Behind

Texas has aggressive enforcement tools. Under Chapter 232 of the Family Code, a court or the Attorney General’s office can suspend the paying parent’s driver’s license, professional license, hunting and fishing licenses, and other state-issued licenses if the parent is three or more months behind and has not followed a repayment plan.¹⁴

Federal enforcement kicks in once arrears exceed $2,500: the state can certify the debt to the U.S. Department of State, which will deny or revoke the parent’s passport.¹⁵ The Treasury Offset Program can intercept federal tax refunds and apply them to the balance.¹⁶

A parent who willfully refuses to pay can be held in contempt of court under Chapter 157, with jail time, fines, community service, and the other parent’s attorney fees on the table. Courts distinguish inability from refusal, but the parent claiming inability has to prove it. Child support is also a “domestic support obligation” under federal bankruptcy law, so it survives both Chapter 7 and Chapter 13 intact.¹⁷

Taxes

Child support is tax-neutral. The paying parent cannot deduct it, and the receiving parent does not report it as income.¹⁸ It has never worked like the old alimony rule.

One Note for Interstate Situations

Texas guidelines only govern while Texas keeps modification authority. Under the Uniform Interstate Family Support Act, Texas retains that authority as long as at least one party still lives in the state. If both parents and the child leave Texas, another state can take over and apply its own guidelines to any modification, though it cannot change how long the obligation lasts.¹⁹ If your case has out-of-state parties, the percentage table above may not be the one that ends up applied.

1
State of Texas. Texas Family Code Section 154.125 – Application of Guidelines to Net Resources
2
Texas Office of the Attorney General. Monthly Child Support Calculator
3
State of Texas. Texas Family Code Section 154.062 – Net Resources
4
State of Texas. Texas Family Code 154.129 – Alternative Method of Computing Support for Children in More Than One Household
5
State of Texas. Texas Family Code Section 154.123 – Additional Factors for Court to Consider
6
State of Texas. Texas Family Code 154.182 – Health Care Coverage for Child
7
State of Texas. Texas Family Code 154.181 – Medical Support Order
8
State of Texas. Texas Family Code Section 154.1815 – Dental Support Order
9
Public.Law. Texas Family Code 154.001 – Support of Child
10
State of Texas. Texas Family Code Section 154.302 – Court-Ordered Support for Disabled Child
11
State of Texas. Texas Family Code 154.007 – Order to Withhold Child Support From Income
12
Texas Office of the Attorney General. Contact Information
13
State of Texas. Texas Family Code 156.401 – Modification of Order
14
State of Texas. Texas Family Code 232.003 – Suspension of License
15
Office of the Law Revision Counsel. 42 USC 652 – Duties of Secretary
16
Bureau of the Fiscal Service. Treasury Offset Program
17
Office of the Law Revision Counsel. 11 USC 523 – Exceptions to Discharge
18
Internal Revenue Service. Tax Information for Non-Custodial Parents
19
Office of the Attorney General of Texas. The Uniform Interstate Family Support Act