Texas Net After-Tax Lost Wages & Earning Capacity Calculator (CPRC § 18.091)
Governing Texas Statutory Formula: CPRC § 18.091
Convert gross pre-injury hourly wages, W-2 salary, overtime, or 1099 net business income into admissible net after-tax lost earnings and present-value loss of earning capacity as required by Texas Civil Practice and Remedies Code § 18.091.
Interactive After-Tax Lost Wages (§ 18.091) Calculator
Why Texas Requires Net After-Tax Wage Proof Under CPRC § 18.091
Because Internal Revenue Code § 104(a)(2) excludes compensatory damages received on account of personal physical injuries or physical sickness from federal gross income, a personal injury plaintiff does not pay federal income tax on a lost-wage settlement or verdict. To prevent a tax windfall, the Texas Legislature enacted CPRC § 18.091 in 2003, mandating that all evidence of lost earnings, loss of earning capacity, or wrongful-death pecuniary loss be presented as a net loss after reduction for federal income tax and FICA/Medicare payroll tax liabilities.
Note also that because Texas has NO state personal income tax (Tex. Const. art. VIII, § 24-a), the § 18.091 deduction involves only federal income tax and applicable federal payroll/self-employment taxes.
Frequently Asked Questions Under Texas Law
Can I recover for lost PTO, sick leave, or vacation days I had to burn after a Texas car crash?
Yes. Under Texas law, even if your employer continued paying your paycheck because you exhausted accrued paid time off (PTO), vacation, or sick leave, the value of that depleted leave is recoverable as part of your lost earning capacity (net of tax under § 18.091).
Can an unemployed person, stay-at-home parent, or college student recover 'Loss of Earning Capacity' in Texas?
Yes! Texas law distinguishes 'past lost wages' from 'loss of earning capacity' (which measures the diminution of your physical and mental ability to earn money in the open labor market, even if you were not working on the day of the crash).
Mandatory 6-Point Texas Legal Disclaimer & Notice
- 1. Not Legal Advice: This website provides general educational and statutory reference information strictly scoped to Texas personal injury law, Texas courts, and Texas statutes. Nothing on this site constitutes legal advice, a legal opinion, or counseling on any specific set of facts.
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- 3. Content May Be Inaccurate or Outdated: Although articles reference the Texas Civil Practice and Remedies Code (CPRC), Texas Transportation Code, Texas Insurance Code, Texas Labor Code, Texas Rules of Civil Procedure (TRCP), and published decisions of the Supreme Court of Texas and the 15 Texas Courts of Appeals, legislation and appellate holdings change continually. Information on this website may be incomplete, inaccurate, or superseded by subsequent statutory amendments or judicial opinions.
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