Texas Workers’ Compensation Payout Data Report (2026)

The average workers’ compensation claim in Texas costs $10,836 across all claim types, according to the NCCI Annual Statistical Bulletin 2026, Exhibit 11. Lost-time claims — those serious enough to cause missed work — average $37,108. Fatal claims average $847,491. Permanent total disability claims average $2,809,248. These figures represent total claim costs including both medical and indemnity (wage replacement) payments. Texas claim costs run 31.2% below the national all-claims average of $15,761 (NCCI ASB 2026), a gap driven in part by the state’s unique opt-out framework and its structured benefit system administered by the Texas Department of Insurance, Division of Workers’ Compensation (TDI-DWC).

Disclaimer: This content is for informational purposes only and does not constitute legal advice. Workers’ compensation law is complex and fact-specific. Consult a licensed Texas workers’ compensation attorney for advice about your individual claim.

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Texas Workers’ Comp Claim Cost Data (2026)

The table below presents total average claim costs for Texas, broken down by claim type and severity category. “Total cost” includes both medical payments and indemnity (lost-wage) benefits paid to the injured worker.

Claim Type	Average Total Cost per Claim (TX)
All claims (combined)	$10,836
Medical-only claims	$1,310
Temporary total disability (TTD)	$16,709
Permanent partial disability (PPD)	$66,135
Permanent total disability (PTD)	$2,809,248
Lost-time claims (all)	$37,108
Fatal claims	$847,491

Source: NCCI Annual Statistical Bulletin 2026, Exhibit 11. Figures represent policy years developed to ultimate cost. Texas is an NCCI state.

What These Cost Categories Mean

Medical-only claims ($1,310) involve injuries treated without lost workdays — think a laceration requiring stitches or a minor sprain. They represent the majority of claims by volume but a small fraction of total dollars paid.

TTD claims ($16,709) involve injuries serious enough to keep a worker off the job temporarily. This is the most common “serious” claim category and the one most workers picture when they imagine a workers’ comp claim.

PPD claims ($66,135) involve lasting impairment that does not fully prevent work. In Texas, PPD benefits are calculated based on impairment ratings assigned by a designated doctor under TDI-DWC’s unique impairment income benefit (IIB) structure.

PTD claims ($2,809,248) are catastrophic — the worker cannot return to any gainful employment. These claims carry lifetime benefit exposure, which drives the high average cost.

Fatal claims ($847,491) include death benefits paid to surviving family members, funeral expenses, and any accrued medical costs prior to death.

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How Texas Compares to the National Average

Texas workers’ comp claim costs are consistently below national benchmarks across nearly every injury category. The 31.2% gap on all-claims average cost ($10,836 TX vs. $15,761 national, per NCCI ASB 2026) is significant, but it masks important variation by injury type.

The national figures below are drawn from the NSC Injury Facts 2024 (citing NCCI data) and represent countrywide averages across all jurisdictions.

Injury / Claim Category	National Average Cost	Texas Average Cost	TX vs. National
All claims (combined)	$15,761	$10,836	-31.2%
Amputation	$125,058	—	Benchmark
Head / CNS injuries	$90,043	—	Benchmark
Motor vehicle accidents	$91,433	—	Benchmark
Neck injuries	$70,575	—	Benchmark
Multiple body parts	$77,614	—	Benchmark
Leg injuries	$61,977	—	Benchmark
Fractures / crush / dislocation	$66,467	—	Benchmark
Arm / shoulder injuries	$55,115	—	Benchmark
Falls / slips	$54,499	—	Benchmark
Burns	$64,973	—	Benchmark

Sources: NSC Injury Facts 2024 (national figures, citing NCCI); NCCI Annual Statistical Bulletin 2026, Exhibit 11 (Texas all-claims figure). Texas-specific breakdowns by injury category are not separately published in NCCI Exhibit 11; national figures serve as the applicable benchmark.

Why Is Texas Below the National Average?

Several structural factors suppress average claim costs in Texas relative to other states:

1. Opt-out framework. Texas is the only state where workers’ compensation coverage is optional for most private employers (Tex. Lab. Code § 406.002). Non-subscribing employers face different liability rules, and the workers’ comp system itself tends to attract employers who have managed their risk profiles carefully — which can reduce average claim severity in the insured pool.

2. Structured impairment income benefits. Texas does not calculate PPD benefits through open-ended negotiated settlements the way many states do. Instead, impairment income benefits (IIBs) are calculated as a fixed multiple of the impairment rating — three weeks of benefits per percentage point of whole-body impairment — capped at 401 weeks total. This formulaic approach limits large outlier PPD settlements.

3. Supplemental income benefits (SIBs) requirements. To qualify for SIBs after the IIB period, injured workers must demonstrate they are actively seeking work and earning less than 80% of their pre-injury wage. This requirement reduces the long-tail cost of claims compared to states with simpler PTD/PPD determinations.

4. Designated doctor system. TDI-DWC uses designated doctors — state-selected physicians — to resolve disputes about maximum medical improvement (MMI) and impairment ratings. This centralizes medical decision-making and historically has been associated with lower contested claim costs.

These factors are not uniformly favorable to injured workers. They mean the system is cheaper to insure — but they also mean individual claimants can receive significantly less than injured workers in other states with similar injuries.

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Texas Benefit Rate Schedule (2026)

Texas workers’ compensation benefits are calculated as a percentage of the injured worker’s average weekly wage (AWW), subject to statutory maximums. The AWW is generally the average of the 13 weeks of wages earned prior to the injury.

Benefit Type	Calculation Rate	Maximum Weekly Benefit	Benefit Period	Notes
Temporary Total Disability (TTD)	70% of AWW	$1,271.05/week	Up to 104 weeks	Called “Temporary Income Benefits” (TIBs) in TX statute
Temporary Partial Disability (TPD)	70% of difference between AWW and post-injury earnings	$1,271.05/week	Up to 104 weeks (combined with TTD)	For workers who return at reduced capacity
Impairment Income Benefits (IIBs)	70% of AWW	$1,271.05/week	3 weeks × impairment rating %	Texas’s PPD equivalent; minimum 3 weeks
Supplemental Income Benefits (SIBs)	80% of difference between 80% of AWW and post-injury earnings	$1,271.05/week	Quarterly; up to 401 weeks from MMI	Must apply each quarter; work-search required
Permanent Total Disability (PTD)	70% of AWW	$1,271.05/week	Lifetime	Called “Lifetime Income Benefits” (LIBs) in TX statute
Death Benefits	75% of AWW (one eligible survivor); 90% (multiple survivors)	$1,271.05/week	Varies by survivor category	Paid to eligible beneficiaries
Funeral Benefit	Flat reimbursement	$10,000	One-time	Per Tex. Lab. Code § 408.186

Source: Texas Department of Insurance, Division of Workers’ Compensation (tdi.texas.gov/wc/); Texas Labor Code Chapter 408. Maximum weekly benefit of $1,271.05 applies for policy year 2026.

Critical note on the Texas minimum benefit: Unlike most states, Texas does not specify a statutory minimum weekly benefit for most income benefit categories. Workers with very low pre-injury wages receive 70% of their actual AWW with no floor, which can result in very low weekly payments for part-time or low-wage workers.

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What These Numbers Mean for Your Claim

Here is what I wish someone had told me before I accepted my first settlement offer: averages are not entitlements, but they are powerful negotiating context.

When I got my settlement offer in 2019 after my second serious injury, the adjuster cited “typical settlements for this type of injury” as justification for a number that felt low. What he did not tell me — and what I later spent two years researching — is that insurance companies have access to enormous claims databases and use average cost data to anchor settlement offers at or below the mean. The injured worker sitting across the table usually has no comparable data. That asymmetry is the entire reason I built this site.

Here is how to use the data on this page practically:

Step 1: Identify your claim type. Are you a medical-only claim? A TTD claim? Do your doctors believe you have permanent impairment? Your claim type determines which average cost benchmark is relevant. A $10,836 average means almost nothing if you have a permanent partial disability — your relevant benchmark is $66,135.

Step 2: Calculate your theoretical maximum benefit. Take your average weekly wage, apply the 70% benefit rate, cap at $1,271.05/week, and multiply by your expected benefit duration. This is your ceiling under the Texas formula. If a settlement offer is significantly below this ceiling without clear justification, ask why.

Step 3: Account for medical costs separately. The NCCI figures are total claim costs — medical plus indemnity. If your medical bills are high, the indemnity (cash) portion of the average is proportionally lower. A $66,135 PPD average might include $40,000 in medical and $26,000 in wage replacement. Know which component your settlement offer is addressing.

Step 4: Understand what a settlement closes. In Texas, a workers’ comp settlement (called a “Compromise Settlement Agreement”) typically closes your right to future indemnity benefits. In many cases it does not close future medical — but terms vary. Read every word before signing.

The insurance company’s use of averages against you: Adjusters are trained to resolve claims at or below average cost to protect their combined ratio. If your injury is more severe than average, the average cost is not your settlement target — it is the floor you are negotiating above. Do not let an adjuster use a population-level statistic to cap your individual claim.

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Frequently Asked Questions

What is the average workers’ comp settlement in Texas?

The NCCI Annual Statistical Bulletin 2026 reports an average total claim cost of $10,836 for all Texas workers’ comp claims, including medical-only claims that never involve a cash settlement. For claims involving lost time from work — the category most workers think of when they imagine a “settlement” — the average total cost is $37,108. For permanent partial disability claims, the average is $66,135; for permanent total disability, $2,809,248.

These are not settlement amounts in the traditional tort-law sense. Texas workers’ compensation is a no-fault administrative system. Most claims resolve through the formulaic benefit structure described in the Texas Labor Code rather than through negotiated lump-sum settlements. However, injured workers and insurance carriers can execute a Compromise Settlement Agreement (CSA) — a lump-sum payment that resolves future indemnity benefits. The value of a CSA depends on the injured worker’s AWW, impairment rating, remaining benefit entitlement, and the likelihood of future supplemental income benefits. Because these variables differ dramatically by claimant, the average cost figures above are useful context but are not predictive of any individual claim outcome.

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How long does a workers’ comp claim take in Texas?

The timeline for a Texas workers’ comp claim depends heavily on claim type and whether disputes arise. An uncomplicated medical-only claim can be opened and closed within weeks. A temporary disability claim typically remains open until the worker reaches maximum medical improvement (MMI), which must be determined by the 104-week mark (two years) following the date of injury — this is the statutory end of Temporary Income Benefits under Tex. Lab. Code § 408.101.

After MMI, a designated doctor assigns an impairment rating, triggering the Impairment Income Benefits (IIB) period. IIBs last three weeks per percentage point of whole-body impairment. A worker with a 10% impairment rating receives 30 weeks of IIBs. If the worker continues to have wage loss after IIBs end, they may qualify for Supplemental Income Benefits (SIBs), which are paid quarterly for up to 401 weeks from the MMI date — approximately 7.7 years.

Disputed claims can take substantially longer. A benefit review conference (BRC) at TDI-DWC must typically be held before a contested case hearing, and appeals can proceed to district court. Contested claims involving permanent disability determinations commonly take two to four years from injury to final resolution.

Statute of limitations: Texas imposes a one-year statute of limitations on workers’ comp claims. Under Tex. Lab. Code § 409.003, an employee must file a claim for compensation with TDI-DWC within one year of the date of injury or the date of the last payment of income or medical benefits, whichever is later. Missing this deadline can permanently bar your claim.

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What factors affect my settlement amount in Texas?

Seven primary factors drive workers’ comp claim value in Texas:

1. Average weekly wage (AWW). All income benefits are calculated as a percentage of your AWW. A worker earning $1,500/week and a worker earning $700/week with identical injuries will receive dramatically different benefit amounts. Your AWW is calculated from your last 13 weeks of wages.

2. Impairment rating. Your whole-body impairment rating — assigned by a designated doctor at MMI — directly determines your IIB duration. Higher ratings mean more weeks of benefits and a stronger foundation for supplemental income benefits.

3. Injury type and body part. Nationally, amputations average $125,058, head/CNS injuries average $90,043, and motor vehicle accident claims average $91,433 (NSC Injury Facts 2024). Higher-severity injury types carry higher average costs and — properly documented — higher settlement values.

4. Return-to-work status. Whether you can return to work at your pre-injury wage or capacity affects your SIB eligibility and the actuarial present value of your claim. Workers who cannot return to any substantial gainful employment may qualify for lifetime income benefits.

5. Medical complexity. Claims involving surgery, ongoing specialist care, or prescription drug dependency have higher medical cost components. If your claim involves future medical needs, ensure any settlement clearly addresses whether future medical is open or closed.

6. Claim disputes. Contested claims — where the insurance carrier disputes compensability, injury extent, or impairment rating — typically result in longer resolution timelines and, paradoxically, sometimes higher settlements because both sides want to avoid the cost and uncertainty of litigation.

7. Attorney representation. Multiple studies have found that represented claimants receive higher total benefits than unrepresented claimants, even after attorney fees. In Texas, workers’ comp attorney fees are regulated by TDI-DWC and are typically 25% of recovered benefits, subject to approval.

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How do I know if my settlement offer is fair?

There is no universal formula for “fair” in workers’ comp — but there are concrete ways to evaluate an offer against objective benchmarks. Here is the framework I use on WorkCompWiki:

Step 1 — Calculate your benefit entitlement floor. Multiply your weekly IIB rate (70% of AWW, capped at $1,271.05) by your remaining IIB weeks (3 × impairment rating %). Add the present value of any projected SIBs. This is the minimum your claim should be worth if you simply ran out the benefit period — and a settlement should generally exceed this because it eliminates the carrier’s uncertainty about future costs.

Step 2 — Compare to injury-type averages. Use the national benchmarks from NSC Injury Facts 2024: fractures average $66,467; arm/shoulder injuries average $55,115; falls/slips average $54,499. If your offer is significantly below the national average for your injury type, demand a written explanation from the adjuster.

Step 3 — Account for future medical exposure. If the settlement closes future medical benefits — which some CSAs do — add the present value of projected future medical costs to your target number. Spinal injuries, for example, often involve decades of pain management and potential re-operation.

Step 4 — Get an independent medical evaluation. If the adjuster’s impairment rating feels low, you have the right to dispute it through TDI-DWC. A one or two percentage point difference in impairment rating translates directly into three to six weeks of IIBs — which at $1,271.05/week is $3,800–$7,600.

Step 5 — Consult an attorney before signing. A CSA is binding. Once executed and approved by TDI-DWC, it cannot be reopened. Attorney consultations for workers’ comp in Texas are typically free.

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Should I hire a workers’ comp attorney in Texas?

For medical-only claims or straightforward TTD claims where the carrier has accepted compensability and is paying timely benefits, self-representation is often workable. For any claim involving a disputed impairment rating, denied compensability, permanent disability determination, or a proposed Compromise Settlement Agreement, the evidence strongly favors retaining an attorney.

Texas workers’ comp attorneys are prohibited from charging fees on benefits paid without their involvement — fees apply only to benefits they recover that would not otherwise have been paid (Tex. Lab. Code § 408.221). Fees are capped and subject to TDI-DWC approval, typically at 25% of recovered benefits. This means the attorney only earns a fee if they generate value for you.

The practical case for attorney representation is compelling in complex claims: the carrier’s adjuster handles dozens of claims and has access to proprietary claims databases, medical bill review systems, and legal counsel. You, as an injured worker navigating the system for the first or second time, are at a significant information disadvantage. An experienced Texas workers’ comp attorney knows designated doctor selection strategies, impairment rating dispute procedures, SIB qualification tactics, and how to value a CSA against the actuarial cost of running out the benefit period.

From personal experience: the most expensive mistake I see injured workers make is signing a settlement agreement without attorney review. The second most expensive mistake is waiting until after they have already signed. Consultations are free. Use them.

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Data Sources and Methodology

Primary Sources

NCCI Annual Statistical Bulletin 2026, Exhibit 11
National Council on Compensation Insurance (NCCI), Annual Statistical Bulletin, 2026 edition, Exhibit 11: “Average Cost per Case by State and Claim Type.” NCCI collects and analyzes workers’ compensation data from member insurance carriers across 38 NCCI states, including Texas. Exhibit 11 figures represent policy years developed to ultimate cost — meaning claims are projected to their final settled value, not just costs paid to date. This is the standard methodology for actuarial claim cost comparisons. Texas participates in the NCCI data-sharing system; TDI-DWC is the state regulatory partner. Available at: ncci.com (subscription required for full bulletin).

NSC Injury Facts 2024
National Safety Council, Injury Facts, 2024 edition, “Workers’ Compensation Costs by Injury Type.” The NSC compiles NCCI-sourced data on average claim costs by injury nature and cause at the national level. These figures represent countrywide averages across all jurisdictions in the NCCI system and are used here as national benchmarks for comparison with Texas-level data. Available at: injuryfacts.nsc.org.

Texas Department of Insurance, Division of Workers’ Compensation (TDI-DWC)
Texas Labor Code, Chapters 406–415. Benefit rate schedule, maximum weekly benefit, and procedural rules. Available at: tdi.texas.gov/wc/.

Methodology Note: What “Average Cost per Case” Means — and Its Limitations

The NCCI “average cost per case” figures represent the arithmetic mean of total claim costs — medical plus indemnity — across all claims in a policy year, developed to ultimate cost. Several important limitations apply:

1. Means are skewed by outliers. A small number of catastrophic claims (PTD, fatal) dramatically raise average costs. The median claim cost is substantially lower than the mean for most claim categories.

2. These are costs, not settlements. “Average cost per claim” includes all payments made by the carrier — medical bills, pharmacy, TTD payments, PPD awards, legal defense costs. A worker’s cash settlement or benefit payment is typically a fraction of total claim cost.

3. Texas-specific category data. NCCI Exhibit 11 provides Texas-level breakdowns by claim type (TTD, PPD, PTD, fatal, medical-only) but does not publish Texas-specific breakdowns by injury nature (e.g., amputation, fracture). National injury-type averages from NSC Injury Facts 2024 are used as benchmarks where Texas-specific data is unavailable.

4. Opt-out employer exclusion. Approximately 32% of Texas private-sector employees work for non-subscribing employers (TDI-DWC data), whose claims do not flow through the workers’ comp system and are not reflected in NCCI data. NCCI figures represent only subscribing-employer claims.

5. Annual updates. Claim cost averages change each year. The figures on this page reflect the NCCI ASB 2026 publication. Users relying on this data for legal or actuarial purposes should verify currency against the most recent available bulletin.

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This content is for informational purposes only and does not constitute legal advice. Workers’ compensation laws, benefit rates, and procedures change frequently. The data presented reflects sources available as of the publication date noted in this report’s frontmatter. For advice specific to your claim, consult a licensed Texas workers’ compensation attorney. To find a TDI-DWC-registered attorney or ombudsman, visit tdi.texas.gov/wc/.