How Much Do Surrogates Make in Texas?

Surrogacy offers a path for individuals to assist others in building families, and it involves financial arrangements for the gestational carrier’s time and effort. Compensation for surrogates encompasses various financial elements, covering both direct payments and reimbursements for expenses incurred throughout the surrogacy journey. Understanding these financial aspects is important for anyone considering becoming a surrogate.

Components of Surrogate Compensation

A surrogate’s total compensation package typically includes a base fee and various additional allowances or reimbursements. The base compensation for a first-time surrogate in Texas can range from approximately $35,000 to $65,000, with some agencies citing starting compensation around $50,000 to $61,100. This base pay is often distributed in monthly installments once a pregnancy is confirmed.

Beyond the base fee, surrogates receive payments for specific expenses and circumstances. These reimbursements can cover medical expenses not covered by personal insurance, such as co-pays, medications, and fertility treatments. Monthly allowances are common, designed to cover miscellaneous costs like local travel, childcare for appointments, phone calls, and prenatal vitamins.

Additional compensation is often provided for specific events or needs:
A maternity clothing allowance, typically around $800 to $1,500, is paid around the second trimester, with higher amounts for multiple pregnancies.
Reimbursements for travel expenses, including mileage for local appointments and actual costs for longer-distance travel, are also standard.
Surrogates may also be compensated for lost wages if time off work is required for appointments, procedures, or bed rest.
Some agreements may even include lost wages for a spouse if their presence is needed.
Fees for embryo transfers (around $750 to $1,500 per transfer).
Bonuses for invasive medical procedures (such as $500 per procedure).
Additional compensation for carrying multiples (e.g., $8,000 to $15,000 per additional child).
Compensation for a Cesarean section is also typical, ranging from $2,500 to $3,500 for the first C-section.
Childcare expenses incurred during appointments or bed rest are also frequently reimbursed.

Variables Affecting Surrogate Pay

The total compensation a surrogate receives can fluctuate based on several influential factors. One significant variable is a surrogate’s prior experience. Experienced surrogates, having successfully completed previous journeys, generally command higher compensation than first-time surrogates, with an increase that can be $5,000 or more per subsequent journey.

The choice between working with a surrogacy agency or pursuing an independent arrangement can also affect pay. Agencies often provide comprehensive support, matching services, and structured compensation packages. While some agencies offer competitive rates, independent arrangements might allow for more direct negotiation of terms.

Geographic location within Texas can also play a role, although many compensation components are standardized across the state. Regional demand for surrogates and the prevailing cost of living in urban centers like Houston or Dallas might subtly influence compensation ranges, with some sources indicating averages between $55,000 and $110,000 or $60,000 and $110,000 in these areas. The specific terms negotiated and outlined in the surrogacy agreement ultimately determine the final compensation amount.

Texas Surrogacy Law and Compensation

Texas law provides a clear legal framework for compensated gestational surrogacy, which directly impacts the financial arrangements for surrogates. The Texas Family Code, Chapter 160, addresses gestational agreements and permits these arrangements. This legal recognition ensures that agreements for compensation are enforceable.

The law outlines requirements for a gestational agreement to be valid and binding. These requirements include a written and signed agreement by all parties, typically at least 14 to 15 days before any embryo transfer. While the Texas Family Code does not extensively detail compensation beyond health-related costs, it allows for reasonable compensation to the surrogate. This legal standing validates the financial aspect of surrogacy, allowing surrogates to be compensated for their time, effort, and the physical demands of pregnancy. The statute ensures that the intended parents are recognized as the legal parents from birth, reinforcing the contractual nature of the arrangement.

Taxation of Surrogate Income

Compensation received by a surrogate is generally considered taxable income by the Internal Revenue Service (IRS). Under Internal Revenue Code Section 61, gross income includes all income, with no specific exception for surrogacy fees. Surrogates should anticipate reporting their compensation on their federal income tax return.

The classification of this income can vary; it might be reported as “other income” or, if the surrogacy activity is deemed a “trade or business,” it could be subject to self-employment tax. Even if a Form 1099-MISC is not issued, the income remains taxable, and surrogates are responsible for reporting it.

For tax purposes, certain expenses might be deductible, though typically limited. Medical expenses incurred by the surrogate not reimbursed by the intended parents may be deductible if they exceed 7.5% of the surrogate’s adjusted gross income and if the surrogate itemizes deductions. Direct surrogate compensation, medical bills covered by intended parents, and agency fees are generally not deductible for the surrogate. Consulting a qualified tax professional is important for surrogates to understand their specific tax obligations. Texas does not have a state income tax, so surrogates are primarily concerned with federal income tax implications.