How much does an executor get paid in Texas?

Under Texas Estates Code 352.002, an executor is entitled to a 5% commission on cash the executor actually receives, plus a 5% commission on cash the executor actually pays out, in administering the estate. The combined total can't exceed 5% of the gross fair market value of the estate. Key exclusions from the commission base: cash already on hand or already sitting in a bank or brokerage account at death, life insurance proceeds, and cash distributed to heirs or legatees as such - so a simple, liquid estate often produces a surprisingly small commission.

Does a Texas independent executor need court approval to charge the 5% commission?

No. The standard 5% commission under Estates Code 352.002 does not require court approval for an independent executor. Seeking a higher, alternate amount under Section 352.003 does require applying to the county court.

Why is the Texas executor commission often lower than expected?

Because the 5% commission excludes cash that was already on hand or already held in a bank or brokerage account at the time of death, life insurance proceeds, and cash paid out to heirs or legatees. Most of a liquid estate's value often falls into these excluded categories, leaving a much smaller base for the commission than the estate's total value.

Can a Texas executor waive their fee?

Yes. Nothing in Texas Estates Code 352.002 requires an executor to charge the commission - they can simply decline to take it.

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How the Texas executor commission actually works

Texas doesn't apply a percentage to the estate's value the way most states do — it applies 5% to actual cash flows, and then excludes most of the easy money.

1. 5% on cash received, 5% on cash paid out

Tex. Est. Code § 352.002(a): an executor found to have managed the estate properly "is entitled to receive a five percent commission on all amounts that the executor or administrator actually receives or pays out in cash in the administration of the estate." That's two separate 5% commissions — one on qualifying money coming in, one on qualifying money going out.

2. An aggregate cap of 5% of the estate's gross value

§ 352.002(b)(1): the combined commission "may not exceed, in the aggregate, more than five percent of the gross fair market value of the estate subject to administration." So even if the 5%-received-plus-5%-paid-out math would produce more, the total commission stops at 5% of the estate's gross value.

3. The exclusions that shrink the base — often dramatically

§ 352.002(b)(2): the commission is not allowed for: (A) receiving funds that were already on hand, or already held in a financial institution or brokerage firm, at the time of death — checking, savings, CDs, money market accounts; (B) collecting life insurance proceeds; or (C) paying cash out to an heir or legatee in that capacity. In a simple, liquid estate — bank accounts and life insurance, distributed straight to heirs — almost everything falls into these exclusions, leaving little or nothing for the 5% to apply to.

4. Alternate, higher compensation — but it requires a court petition

§ 352.003: the court may allow "reasonable compensation," including for unusual efforts to collect funds or life insurance, if the executor manages a farm, ranch, factory, or other business of the estate, or if the standard § 352.002 commission is unreasonably low. Distinctively, even though a Texas independent executor doesn't need court approval for the standard 5% commission, the county court does have jurisdiction over applications for this alternate, higher compensation.

5. When compensation can be denied

§ 352.004: the court may wholly or partly deny a commission if the executor hasn't managed estate property prudently, or has been removed under § 149C or Subchapter B of Chapter 361.

6. Expenses and attorney's fees are separate

Tex. Est. Code § 352.051 separately entitles the personal representative to necessary and reasonable expenses (preserving, safekeeping, and managing the estate; collecting debts; recovering estate property) and reasonable attorney's fees — distinct from the § 352.002 commission covered here.

Component	Texas figure	Source
Commission on qualifying cash received	5%	Tex. Est. Code § 352.002(a)
Commission on qualifying cash paid out	5%	Tex. Est. Code § 352.002(a)
Combined aggregate cap	5% of gross fair market value	Tex. Est. Code § 352.002(b)(1)
Court approval needed for standard commission?	No, for an independent executor	Common independent-administration practice

Texas executor fee — frequently asked questions

How much does an executor get paid in Houston or Dallas?

The Tex. Est. Code § 352.002 commission applies statewide, including Harris and Dallas counties. There's no county-specific rate; the same 5%-received-plus-5%-paid-out formula, with the same exclusions, applies everywhere.

Why is the commission so much smaller than 5% of the whole estate?

Because cash already sitting in a bank account or brokerage at death, life insurance proceeds, and distributions to heirs are all excluded from the base - most of a simple estate's liquid value never enters the 5% calculation.

Does an independent executor need court approval to collect the standard fee?

No - that's a defining feature of Texas independent administration. Court involvement is only required to seek the higher, alternate compensation under § 352.003.

What work actually generates a meaningful commission?

Actively collecting funds the estate had to pursue (unpaid debts owed to the decedent, litigation recoveries), and paying out cash for estate obligations like debts, taxes, and administration expenses - not simply moving already-liquid assets to beneficiaries.

Is the Texas executor fee taxable?

Yes — compensation is taxable income under federal law regardless of state. See our guide to how it's taxed, and when to waive it for the IRS rules on self-employment tax and reporting.

This calculator provides an estimate for general guidance only and is not legal, tax, or financial advice. Figures are based on Texas statute (Tex. Est. Code § 352.002-352.004). The 5%/5% commission is capped in aggregate at 5% of the estate's gross fair market value, and excludes cash already on hand or in a financial institution at death, life insurance proceeds, and distributions to heirs or legatees as such. Alternate, higher compensation requires a county court petition. Confirm current figures with the probate court or a licensed Texas attorney before acting.