What Is Percentage of Income Model
The percentage of income model is a child support calculation method where the noncustodial parent pays a fixed percentage of their gross income, regardless of the custodial parent's earnings. Unlike the Income Shares Model, which accounts for both parents' incomes and their theoretical share of parenting costs, the percentage model is simpler and more straightforward to calculate and enforce.
How It Works
Under this model, your state's Child Support Guidelines establish a percentage that applies to the noncustodial parent's income. Common percentages are:
- 17 percent for one child
- 25 percent for two children
- 32 percent for three children
- 40 percent for four children
- 50 percent for five or more children
If the noncustodial parent earns $60,000 annually and owes support for two children, the calculation is straightforward: $60,000 x 0.25 = $15,000 per year, or roughly $1,250 monthly before adjustments for taxes and existing support obligations.
Where This Model Applies
States using primarily percentage of income models include Texas, Louisiana, Florida, and Mississippi. However, even in these states, adjustments occur for:
- Shared or split custody arrangements (support typically reduces by the percentage of time the noncustodial parent has custody)
- Other existing support obligations to children from prior relationships
- Childcare costs and health insurance premiums paid by the noncustodial parent
- Income caps set by your state (many states cap calculations at $250,000 to $360,000 in annual income)
Why This Differs from Income Shares
The Income Shares Model, used by most states, calculates what percentage of combined parental income would theoretically go toward child expenses, then allocates that amount based on each parent's income share. The percentage model ignores the custodial parent's income entirely in the base calculation. This makes the percentage model faster to administer but potentially less equitable when one parent earns significantly more than the other.
Connection to Property Division and Spousal Support
Child support calculated under the percentage model operates independently from property division and spousal support awards. Your divorce decree may award one spouse 40 percent of marital assets and spousal support of $800 monthly, with child support calculated separately using the percentage formula. Courts do not reduce child support based on generous property settlements.
Common Questions
- Does the custodial parent's income affect the calculation? No, not under the basic percentage model. The formula applies only to the noncustodial parent's income. However, if custody is shared significantly, the noncustodial parent's obligation reduces by their custodial percentage.
- What counts as "income" for these calculations? Gross income includes W-2 wages, self-employment income, bonuses, rental income, retirement distributions, and unemployment benefits. It excludes means-tested benefits like TANF or SSI in most states.
- Can the percentage change during my divorce? The percentage itself does not change, but your obligation amount changes if the noncustodial parent's income changes significantly, typically requiring a 10 to 20 percent change (depending on your state) to justify modification.