If you or the other parent is self-employed — a contractor, freelancer, gig worker, or business owner — the Texas guideline percentages are exactly the same as for a salaried employee: 20% of net resources for one child, 25% for two, on up the schedule. What changes is the net resources those percentages are applied to. Two things work differently: how income is defined, and how taxes are deducted — plus a third that matters just as much in practice: how the number gets proven, because there's no W-2 to settle the question.
1. Self-employment income is net of expenses
Under Family Code §154.065, self-employment income means gross receipts minus the ordinary and necessary expenses required to run the business. You don't use the top-line revenue of the business; you use what's left after legitimate operating costs. The guideline runs on the profit, not the revenue.
This is the central tension in self-employment cases: a tax return is drafted to minimize taxable income, while a child-support calculation measures actual ability to pay. The two start from the same receipts and legitimately land in different places — and the judge, not the accountant, decides which expenses count.
2. Self-employment (SECA) taxes are higher
A W-2 employee pays 6.2% Social Security and 1.45% Medicare; the employer pays a matching half. A self-employed person pays both halves — the self-employment tax:
| Tax | Employee (W-2) | Self-employed (SECA) |
|---|---|---|
| Social Security | 6.2% | 12.4% |
| Medicare | 1.45% | 2.9% |
SECA tax is figured on about 92.35% of net self-employment earnings (Social Security still stops at the annual wage base, $184,500 for 2026), and one-half of the SE tax is deductible when computing federal income tax. The Attorney General publishes a separate self-employed tax chart that bakes all of this in. The practical effect: for the same "take-home," a self-employed parent's net resources are usually a bit lower than a W-2 parent's because their payroll-type taxes are higher. The net-resources guide walks through the full deduction list — federal income tax, FICA or SECA, union dues, and the child's health and dental insurance premiums.
What an add-back does to the number
Because the guideline is a straight percentage, every dollar a court adds back flows directly into the support figure. Here's the scale of it, using two net-resources levels from the standard 2026 conversion table:
- Net resources of $3,396 → one child at 20% = $679/month ($3,396 × 0.20 = $679.20)
- Net resources of $4,199 → one child at 20% = $840/month ($4,199 × 0.20 = $839.80)
So if disputed write-offs are the difference between a court finding net resources of $3,396 versus $4,199, the order moves by roughly $161 a month for one child — about $1,900 a year. With two children at 25%, the same two figures produce $849 versus $1,050. Expense fights aren't academic; they're the whole ballgame.
What courts look at with self-employed parents
- Tax returns and profit-and-loss statements, often for the last 2–3 years to smooth out variable income
- Bank deposits that don't appear on the return
- Personal expenses run through the business (a car, phone, travel) that effectively increase real income
- Depreciation and paper losses that may be added back
Because self-employment income swings month to month, courts prefer a representative multi-year picture over a single good or bad quarter. One slow season won't reset the number — but a sustained decline is grounds to seek a modification, not a reason to underreport.
If the records are thin: imputation risk
Sparse or unconvincing records don't make support smaller — they hand the decision to the court. With no reliable evidence of what a parent earns, §154.068 lets the court presume income at federal minimum wage for a 40-hour week. And if the evidence suggests a parent is intentionally underemployed — the business "suddenly" makes nothing once a case is filed, or income is routed in cash — §154.066 lets the court base support on earning potential instead of reported income. The unemployment and imputed-income guide covers those findings. The lesson for a self-employed parent: clean books are your best defense, whichever side you're on.
How to estimate it on this site
The calculator's "Estimate from gross income" mode assumes a W-2 employee, so it isn't exact for the self-employed. The reliable approach for self-employment income is:
- Work out your monthly net resources yourself (business income after real expenses, minus SE taxes and the child's insurance), then
- Use the calculator's "I know my net resources" mode and enter that figure directly.
That applies the correct guideline percentage, the $11,700 cap, and the low-income rule to a number you control. If your business nets more than the cap, the guideline amount tops out just like it does for a high W-2 earner — $2,340 for one child, $2,925 for two.
Paying without an employer: the registry
Most Texas orders are collected through an income withholding order sent to an employer. A self-employed obligor has no employer to receive one, so the order will require paying the Texas State Disbursement Unit — the state registry — directly. That routing matters more than it sounds: payments made informally (cash to the other parent, payment apps, "I covered the school fees") may never be credited against the obligation, because the registry record is what a court looks at if arrears are ever disputed. Pay the registry from day one and keep the confirmations.
Common mistakes in self-employment cases
- Assuming the tax return ends the argument. It's the starting point; add-backs can move the number substantially.
- Running personal life through the business and expecting it to stay deducted — courts treat those perks as income.
- Paying the other parent directly instead of through the registry, then having no official record of it.
- Waiting out a real income drop instead of filing to modify — the old amount keeps accruing until a new order is signed.
- Showing up with no books. Thin records invite the court to presume or impute income rather than take your word.
Frequently asked questions
How is child support calculated for self-employed parents in Texas?
The percentages are the same as for employees — the full guideline chart applies. What differs is the input: self-employment income is gross receipts minus ordinary and necessary business expenses (§154.065), and taxes come out at self-employed (SECA) rates rather than employee payroll rates.
Can a court add depreciation back into my income?
Yes. Depreciation reduces taxable income without money leaving your pocket that year, so courts commonly add it back. Vehicle, travel, meal, and home-office write-offs can get the same treatment when they look more personal than business.
What records will I need to show?
Expect to produce federal tax returns for the last two to three years, profit-and-loss statements, and bank records. Deposits and spending patterns can be used to argue the return understates real income — consistent, complete books help whichever position you're in.
What if the other parent hides self-employment income?
Courts aren't limited to the number on the return. With no reliable evidence of income, the minimum-wage presumption of §154.068 applies; with evidence of intentional underemployment, the court can use earning potential under §154.066. Bank records, lifestyle evidence, and prior earnings all come into play.
How do I actually make payments with no employer withholding?
Your order will direct payment to the Texas State Disbursement Unit. Pay the registry directly, on schedule, and keep records — informal payments risk earning no credit against the obligation.
Is support higher or lower for the self-employed?
The percentage is identical, but for the same take-home a self-employed parent's net resources usually come out slightly lower because SECA taxes both halves of Social Security and Medicare. Where the number really moves is the expense fight — what counts as a legitimate business cost.