Breaking Down New Dalton Schultz Contract

Here's everything you need to know about Dalton Schultz's new contract with the Houston Texans.

The Houston Texans were always interested in bringing back tight end Dalton Schultz before the start of free agency. Now, he's locked in through the 2026 season. 

Schultz and the Texans agreed to terms on a three-year, $36 million contract just before the franchise tag deadline. Sources told TexansDaily.com at the NFL Scouting Combine that the two sides were working on finalizing a deal prior to March 11's tampering period. 

Houston Texans tight end Dalton Schultz (86) celebrates receiving a pass against the Tennessee Titans during the fourth quarter at Nissan Stadium in Nashville, Tenn., Sunday, Dec. 17, 2023 :: Andrew Nelles / The Tennessean / USA TODAY NETWORK

According to KPRC2 Sports, Schultz will have fully guaranteed base salaries in 2024 and 2025 of $5 million and $11 million, respectively. In 2026, he'll be owed an $11 million non-guaranteed base salary. 

With the first two years of his contract fully guaranteed, Schultz will remain on the roster through at least the 2025 season, barring a potential trade. With a strong campaign next season, the 27-year-old could pivot toward another short-term extension, upping his price from the expected $11 million in 2026. 

After spending five seasons with the Dallas Cowboys, Schultz inked a one-year, $6.25 million deal last offseason to join the AFC South franchise. He became a fixture of the passing attack under Bobby Slowik and a security blanket across the middle of Offensive Rookie of the Year C.J. Stroud. 

In 15 games, Schultz recorded 59 catches for 635 yards and five touchdowns. The former Standford star also recorded a career-best 10.8 yards per catch.

Schultz's best game came in Week 9's win over the Tampa Bay Buccaneers, where he hauled in 10 catches for 130 yards and a touchdown. He also caught a 37-yard touchdown pass in the second quarter from Stroud in the AFC Wild-Card Round win over the Cleveland Browns. 

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"Dalton did a really nice job for us in the passing game on those two-minute drives where we were able to win a few games," Texans coach DeMeco Ryans said at the combine last week. "Dalton really showed up in situational football. Third down, he showed up making big catches for us."

Last season, Schultz ranked 12th among tight ends in receptions and receiving yards and was tied for seventh in touchdowns. He also was one of eight tight ends to finish with over 100 receiving yards in a game. 

Since 2020, Schultz ranks top-five among tight ends in receptions (257) and touchdowns (22) and sits eighth in receiving yards (2,635). He is one of three tight ends to have 50 or more catches and 500-plus receiving yards in each of the last four seasons, joining Kansas City's Travis Kelce and Minnesota's TJ Hockenson. 

The Texans return all three of their leading receivers entering 2024 and could look to add another name in free agency or the draft next month.