How travel nurse pay is taxed
A travel nursing package has two parts. The taxable hourly rate is ordinary W-2 wages, subject to federal income tax, Social Security, Medicare and state income tax. The stipends for housing and meals (M&IE) reimburse the cost of living away from home. When they're paid under an accountable plan, they're left out of your wages and aren't taxed at all.
That split is why two offers with the same "blended" weekly gross can pay very differently after tax. It's also why the calculator asks for the taxable rate and the stipends separately.
Stipends are tax-free only up to the GSA rate
Agencies generally cap tax-free stipends at the federal per diem rate for the assignment location, set by the General Services Administration (GSA). For FY2027 (October 1, 2026 to September 30, 2027) the standard rate is $113 a night for lodging and $68 a day for meals and incidentals. About 300 areas have higher rates, and many change by season (New York City lodging runs from $189 a night in winter to $358 in the fall). Enter your assignment ZIP code and the calculator finds the area and averages the lodging rate over your contract dates, using GSA's official FY2027 table. You can check any rate on gsa.gov. If a stipend is paid above that limit, the calculator treats the excess as taxable wages.
The tax home test
Stipends are only tax-free if you're traveling away from your tax home. If you don't have one, you're an itinerant worker in the IRS's eyes, and every dollar of stipend is taxable income. The IRS looks at three factors. You meet all three: you have a tax home. You meet two: it depends on your facts. You meet one or none: you're itinerant. The "50-mile rule" you'll hear about is an agency policy, not an IRS rule.
The one-year limit
An assignment in one location that's expected to last more than a year is treated as indefinite. Stipends paid for it become taxable, even if you have a tax home somewhere else.
Why a low taxable rate can cost you
Some packages pay a very low taxable rate and push most of the money into stipends. Your take-home looks higher, but overtime is usually calculated from the taxable rate, and Social Security credits, unemployment benefits and mortgage applications all see only the taxable wages. A taxable rate far below what staff nurses earn locally can also draw IRS scrutiny.
FAQ
Are travel nurse stipends taxable?
No, as long as you have a qualifying tax home, the assignment is temporary (expected to last a year or less), and the stipends don't exceed the GSA per diem rate for the location. If any of those conditions fails, the stipends (or the part above the limit) are taxable wages.
How much tax do travel nurses pay?
Usually less as a share of the package than staff nurses do, because the stipends aren't taxed. The taxable wages are taxed like any W-2 job: 10% to 37% federal income tax, 7.65% Social Security and Medicare, plus state income tax. Enter your offer above to see your effective rate.
Which state do travel nurses pay income tax to?
Usually the state where you work the assignment, and also your home state if it taxes residents' income. Your home state gives a credit for tax paid to the work state, so in practice you pay about the higher of the two, not both. Two exceptions: states with a reciprocity agreement (for example, a New Jersey resident working in Pennsylvania) only tax you at home, and DC never taxes nonresidents. Living in a no-income-tax state like Texas or Florida doesn't help if you work in California: California taxes wages earned there. Enter your assignment ZIP and home state above and the calculator handles this for you.
What if I don't have a tax home?
Then all stipends count as taxable income. Choose "No" for the tax home question above to see how much take-home pay you'd lose. The breakdown table always shows both cases.
This calculator gives estimates for planning only, not tax advice. It annualizes the contract's pay over the weeks you work per year, uses 2026 federal brackets, the 2026 standard deduction and the $184,500 Social Security wage base. State tax uses 2026 brackets, standard deductions and exemptions for all 50 states and DC from the Tax Foundation, with head of household on the single schedule. It assumes all contract wages are earned in the assignment state and that your home state credits the tax paid there. Local and city income taxes (for example NYC, Maryland counties, Ohio and Pennsylvania localities) are not included. For married filing jointly it assumes your spouse has no income. Your actual tax depends on your full-year income, deductions and state rules. Check with a tax professional who works with travel nurses.