How the Travel Nurse Paycheck Calculator Works

This calculator shows you your real weekly and monthly take-home pay as a travel nurse. You enter your taxable hourly rate, guaranteed hours, overtime, and tax-free stipends (housing and meals). The tool calculates your total compensation including both taxable wages and non-taxable reimbursements.

The formula:

If you make $35/hour for 36 guaranteed hours plus $1,500 weekly housing and $350 meals, your gross hourly pay is $1,260. At a 20% tax rate, net hourly is $1,008. Add $1,850 in stipends, total weekly take-home is $2,858, or about $11,432 monthly.

Understanding Travel Nurse Pay Structure

Travel nurse compensation is split into two parts: taxable hourly wages and tax-free reimbursements (stipends). This structure exists because you’re working away from your permanent tax home and incurring duplicate living expenses.

Taxable Hourly Rate

This is your base wage, reported on your W-2. It’s subject to federal income tax, state tax, Social Security, and Medicare. The hourly rate for travel nurses is often lower than it appears because a large portion of compensation comes through stipends.

Example: A job advertised at $2,500 weekly might break down as $30/hour for 36 hours ($1,080 taxable) plus $1,420 in stipends. The $30/hour is what gets taxed.

Tax-Free Stipends

Housing and meal stipends are reimbursements for expenses you incur while working away from home. They’re not taxable income if you maintain a permanent residence (tax home) and incur duplicate housing costs.

Housing stipend covers your temporary accommodation at the assignment location. Meal and incidentals (M&IE) covers food and miscellaneous costs. These amounts are based on federal per diem rates for the assignment location.

The stipends are paid to you tax-free, but you must actually incur the expenses they’re reimbursing. If you’re not maintaining a tax home elsewhere, these become taxable income.

Overtime Pay

Overtime (typically hours over 40 per week) pays 1.5 times your hourly rate. This is taxable income on top of your regular hours. Some contracts guarantee 48 hours (36 regular + 12 overtime), which significantly boosts weekly pay.

If your base rate is $30/hour, overtime is $45/hour. Working 48 hours means $1,080 regular plus $540 overtime ($1,620 total taxable), then add stipends on top.

Common Mistakes Travel Nurses Make

Comparing Only Hourly Rates

Assignment A offers $40/hour. Assignment B offers $30/hour. A looks better, right? Not necessarily. If A has $1,000 weekly stipends and B has $2,200, B pays $640 more per week despite the lower hourly rate.

Always calculate total weekly or monthly take-home including all components before comparing offers.

Not Maintaining a Tax Home

To receive stipends tax-free, you must maintain a permanent residence (tax home) away from your assignment. This means paying rent or mortgage, utilities, and returning there regularly. If you don’t have a tax home, all stipends become taxable income.

Living in an RV full-time or staying with family rent-free might disqualify you. The IRS could reclassify your stipends as wages, requiring back taxes plus penalties.

Forgetting About Taxes on Hourly Pay

A $2,800 weekly offer breaks down as $1,200 hourly plus $1,600 stipends. Many nurses see $2,800 and think that’s take-home. It’s not. The $1,200 hourly gets taxed at 20-25%, dropping it to $900-$960. Real take-home is $2,500-$2,560, not $2,800.

Always calculate after-tax income on the hourly portion before budgeting.

Not Tracking Actual Expenses

Stipends reimburse actual expenses. If your housing costs $1,200/month but you’re receiving $1,500, the extra $300 could be considered taxable income if audited. Keep receipts for rent, utilities, and food.

Similarly, if housing only costs $800 but you receive $1,500, you need to document why you’re receiving more (higher area costs, agency standard rates, etc.).

Ignoring State Tax Differences

If you live in California (high state tax) but work a contract in Texas (no state tax), you still owe California state tax on your taxable income. Your tax burden follows your tax home state, not assignment location.

Conversely, if you establish a tax home in a no-tax state (Florida, Texas, Nevada) before starting travel nursing, you avoid state income tax altogether.

Edge Cases and Real Scenarios

What If I Work Local Contracts?

Local contracts (within 50 miles of your tax home) don’t qualify for tax-free stipends. All pay is taxable hourly wages. The total offer might be the same, but it’s structured differently: higher hourly rate, no stipends.

Example: A travel contract might be $30/hour plus $1,500 stipends. The same job local would be $65-70/hour, all taxable, to equal the same net pay.

What If I Take Company Housing?

Some agencies offer provided housing instead of a stipend. The housing value still counts as income, but it’s typically handled as a tax-free benefit if structured correctly. You receive less cash but don’t pay rent.

Make sure to calculate the value. If company housing is worth $1,200/week and the stipend was $1,500, you’re losing $300 weekly by taking housing instead of cash.

What If Hours Vary Week to Week?

Guaranteed hours set the minimum you’ll work and be paid for. If the facility doesn’t schedule you for all guaranteed hours, you still get paid. If you work more, you get paid more (often at overtime rates).

Budget based on guaranteed hours only. Treat extra hours as bonus income, not reliable recurring money.

What If Overtime Isn’t Guaranteed?

Some contracts offer overtime hours, others don’t. If overtime is available but not guaranteed, don’t count on it for budgeting. Calculate your minimum income using only guaranteed hours plus stipends.

If you regularly work 48 hours but only 36 are guaranteed, budget for 36. Banking on 12 weekly overtime hours that might disappear creates financial stress.

What If I’m a First-Time Travel Nurse?

First assignments have extra costs: setting up a tax home, travel to the assignment, obtaining new state licenses, and purchasing furnishings. Your first contract’s effective pay is lower due to these upfront costs.

Budget conservatively for your first assignment. Assume 20-30% of your first month’s income goes to setup costs. Future assignments cost less because you’ve already invested in the infrastructure.

What If I Extend at the Same Facility?

Extensions usually maintain the same pay package, though some agencies adjust rates. You avoid travel costs and facility orientation time, so the effective value increases even if nominal pay stays flat.

After 12 consecutive months at one location, the IRS might consider it your tax home, disqualifying stipends. Most travel nurses rotate locations before hitting 12 months to maintain stipend eligibility.

How to Maximize Travel Nurse Income

Choose High-Paying Locations

California, Massachusetts, and New York typically pay the most for travel nurses. Cost of living is higher, but even after housing costs, net income often exceeds lower-paying states.

Crisis contracts (rapid response to staffing emergencies) pay premiums, sometimes 50-100% more than standard rates, but they’re short-term and unpredictable.

Negotiate Stipends, Not Just Hourly

Agencies have flexibility on stipend amounts (up to federal per diem limits). If hourly rate is fixed, ask for higher stipends. An extra $200/week in housing stipend is $800 monthly tax-free.

Know the federal per diem rates for your assignment location. If the standard is $200/day but you’re offered $150, there’s room to negotiate up.

Minimize Tax Home Costs

Your tax home doesn’t need to be expensive. Renting a room from family for $400/month qualifies as long as you pay fair market rent and maintain it as your permanent address. This keeps your tax-free stipend qualification without high costs.

Some nurses share a tax home: two travel nurses split a small apartment in a no-tax state, each paying $300-400/month to maintain eligibility while traveling 10-11 months per year.

Track Everything for Taxes

Keep records of all travel expenses, tax home costs, and receipts for housing and meals at assignments. If audited, documentation proves your stipends were legitimate reimbursements, not disguised wages.

Use a dedicated credit card for assignment expenses to simplify tracking.

Consider Contract Timing

Taking contracts in high-demand seasons (winter for flu season, summer for vacation coverage) often pays more. Strategic timing can increase annual income by 15-25% compared to year-round standard rates.

Sample Travel Nurse Pay Packages

Hourly Rate	Hours/Week	Housing	Meals	Weekly Take-Home	Monthly
$30	36	$1,400	$350	$2,614	$10,456
$35	36	$1,600	$400	$3,008	$12,032
$40	48 (12 OT)	$1,200	$300	$3,284	$13,136
$28	40	$1,800	$450	$3,146	$12,584
$45	36	$1,500	$350	$3,146	$12,584

Assumes 20% tax rate on hourly wages

Frequently Asked Questions

Are Stipends Really Tax-Free?

Yes, if you maintain a qualifying tax home and incur duplicate housing expenses. If you don’t meet IRS requirements, stipends are taxable. Most legitimate travel nurses qualify, but compliance is your responsibility.

How Much Should I Set Aside for Taxes?

Set aside 20-25% of your hourly wages for federal and state taxes. Stipends don’t need tax savings if you qualify. If hourly pay is $1,200 weekly, save $240-$300 for taxes.

Do I Need to Pay Quarterly Estimated Taxes?

Most travel nurses are W-2 employees with tax withholding, so no. But if you’re 1099 (independent contractor), yes, you must pay quarterly estimated taxes or face penalties.

What Happens If I Don’t Have a Tax Home?

All stipends become taxable income. Your agency should withhold taxes on the full amount. If they don’t and you get audited, you’ll owe back taxes, penalties, and interest on years of unreported income.

Can I Deduct My Tax Home Expenses?

No. You can’t deduct personal residence expenses. The benefit is receiving tax-free stipends, not deducting your rent. Don’t confuse the two.

How Do I Compare Travel Offers?

Calculate total weekly take-home (hourly after tax plus stipends) for each offer. The one with the highest net weekly pay wins, regardless of how it’s structured. Don’t get fixated on hourly rate alone.

What If My Stipends Exceed My Actual Costs?

Technically, only actual expenses qualify as tax-free reimbursements. If housing costs $1,000 but you receive $1,500, the extra $500 could be taxable. In practice, most nurses receive standardized stipends based on federal per diem rates regardless of actual costs.

Should I Take Higher Hourly or Higher Stipends?

Higher stipends mean less tax now, but also lower Social Security credits and reported income for loan applications. Higher hourly builds retirement benefits and verifiable income. There’s no universal answer, it depends on your situation.

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