Your offer
Defaults are a typical 13-week ICU package. Edit any field — totals update live.
Just the W2 hourly — not the bill rate.
3×12 = 36 · 4×12 = 48
Tax-free if you maintain a tax home.
GSA-based, also tax-free.
Enter the assignment ZIP — we pull the IRS-max housing + meals stipend for that location.
Beyond base hours.
Usually 1.5× over 40 hrs.
Paid at end of contract. Taxable.
Standard travel contract is 13.
Where you maintain your permanent home.
Affects federal bracket.
Weekly take-home
$0
After federal, FICA, and state taxes on taxable income
13-week total
$0
Effective $/hr
$0
Weekly gross composition
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Free Pay Index
Where stipends beat the rent — live rankings
We compare the official GSA lodging allowance against real median asking rents in every travel destination. The gap is money you keep — and it swings by thousands per 13-week contract. Top five states right now:
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Tax Home 101
Why stipends can become taxable
Lodging stipends and M&IE per diem are non-taxable reimbursements for duplicated expenses — meaning the IRS treats them as money you spend to cover housing/meals in your assignment city while also paying for housing back home. If you don't actually have a "tax home," they reclassify the stipends as ordinary income and you owe taxes on every dollar.
Rule 1
Maintain a permanent home
Lease, mortgage, or owned. Family/parents' house generally doesn't count unless you're paying rent and contributing to expenses.
Rule 2
Duplicate expenses
You're paying for housing in two places at once — your tax-home city AND your assignment city.
Rule 3
12-month rule
Don't stay at one assignment longer than 12 months. After that, the IRS considers it your new tax home.
This is informational, not tax advice. Consult a CPA who specializes in travel nurses for your specific situation. Travel Nursing Compass is not a tax advisor.
The Full Guide
How to calculate travel nurse pay
A travel nurse paycheck is not one number — it is two buckets stacked together. Once you can see the two buckets, every "how much will I actually keep?" question gets easy to answer, and the calculator above just does the arithmetic for you. Here is the model recruiters use, in plain English.
Bucket 1 — Taxable
Your hourly W-2 wage
This is the "on-paper" hourly rate — often $18–$40/hr on a travel contract. Federal income tax, Social Security and Medicare (FICA), and state income tax are all withheld from this bucket. Overtime and completion bonuses are also taxable wage.
Bucket 2 — Tax-free
Housing + meal stipends
A weekly lodging stipend and a meals & incidentals (M&IE) per diem, paid to reimburse the cost of living away from your tax home. When you qualify, no tax is withheld from this bucket — so a stipend dollar is worth more in your pocket than a taxable dollar.
To calculate your pay by hand, the steps are:
- Taxable wage = hourly rate × hours per week (add overtime hours × rate × your OT multiplier).
- Weekly stipend = lodging stipend + M&IE per diem (both are set within the GSA per-diem cap for your assignment location — see the stipend calculator).
- Weekly gross = taxable wage + weekly stipend.
- Estimate tax on the taxable wage only: federal income tax, 7.65% FICA, and any state income tax.
- Weekly take-home = (taxable wage − tax) + full weekly stipend.
The single most common mistake is taxing the whole paycheck. Stipends are never taxed (when you qualify), so lumping them in makes your take-home look far lower than it is. The calculator above keeps the buckets separate for exactly this reason.
Line by Line
What's taxable vs. tax-free in a travel nurse paycheck
Every line item in a travel contract falls into one of the two buckets. Here is where each one lands.
| Pay component | Taxed? | Notes |
|---|---|---|
| Hourly W-2 wage | Taxable | Federal, FICA (7.65%), and state tax withheld. |
| Overtime | Taxable | Usually 1.5× the hourly wage over 40 hrs; taxed like base wage. |
| Completion / sign-on bonus | Taxable | Added to taxable wage; often withheld at a higher supplemental rate. |
| Housing / lodging stipend | Tax-free* | Capped by the GSA lodging rate for the county. *Only with a qualifying tax home. |
| Meals & incidentals (M&IE) | Tax-free* | Capped by the GSA M&IE rate for the county. *Only with a qualifying tax home. |
| Travel / license reimbursements | Usually tax-free | When paid as an accountable-plan reimbursement for documented costs. |
Stipend caps are set by the U.S. General Services Administration (GSA) per-diem tables (gsa.gov/travel/plan-a-trip/per-diem-rates). The tax-free treatment of stipends depends on maintaining a legitimate tax home under IRS Publication 463 (irs.gov/publications/p463). If you do not qualify, stipends are reclassified as taxable income — use the Tax Home Checker to see where you stand.
Read The Fine Print
What is a "blended rate" — and why agencies quote it
A blended rate takes your taxable hourly wage and your tax-free stipends and averages them into one hourly-looking number. If your taxable wage is $28/hr and your stipends work out to roughly $43/hr across a 36-hour week, an agency might advertise a "$71/hr blended rate."
It is not a lie — but it can be misleading, for three reasons:
- A blended rate only holds at the exact hours it assumes. Stipends are a fixed weekly amount — they do not go up if you pick up an extra shift, so your true blended rate drops the more hours you work.
- It hides the taxable/tax-free split. Two contracts can quote the same blended rate while one has a much lower taxable wage — which matters for your W-2, mortgage applications, and future Social Security.
- The stipend portion is only tax-free if you qualify. If you do not maintain a tax home, that "$71/hr" is really a fully taxable $71/hr, and your take-home is dramatically lower.
For honest planning, ignore the blended headline and look at three separate numbers: the taxable hourly wage, the weekly stipend, and the resulting weekly take-home. That is exactly what the calculator at the top of this page breaks out — including an "effective $/hr" figure based on your net pay, not a gross blended number.
Worked Example
How to estimate take-home pay: a worked example
Say a nurse is offered a 13-week ICU contract with a $28/hr taxable wage at 36 hours/week, a $1,200/week lodging stipend, and $350/week in M&IE — and they maintain a qualifying tax home in a no-income-tax state. Here is how the weekly math works out:
| Taxable wage ($28 × 36) | $1,008 |
| Weekly stipends ($1,200 + $350) | $1,550 |
| Weekly gross | $2,558 |
| − Estimated tax on the $1,008 wage only (federal + 7.65% FICA; $0 state here) | ≈ −$180 |
| Estimated weekly take-home | ≈ $2,378 |
The lesson is in the ratio: only the $1,008 taxable wage is taxed, while the $1,550 stipend flows through untouched. That is why a modest-looking hourly rate can still produce strong take-home — and why comparing contracts on hourly wage alone is a trap. Your real numbers will differ with your filing status, state, hours, and withholding, so run your own figures in the calculator above and treat the result as an estimate.
Example tax figure is a rough illustration using 2024 federal brackets, the standard deduction, and 7.65% FICA. It is not a promise of take-home pay. Verify every offer with your agency's payroll team.
Checklist
How to read a travel nurse pay package
When a recruiter sends a pay package, work down this checklist before you say yes. A fair package will answer all of these clearly; a shaky one will blur them together into a single blended number.
1. What is the taxable hourly wage?
A very low hourly wage (near minimum wage) with a huge stipend can be a compliance risk and shrinks your W-2. Look for a reasonable, defensible wage.
2. What are the weekly stipends?
Lodging + M&IE, quoted per week. Check them against the GSA cap for the assignment county with the stipend calculator.
3. How many hours are guaranteed?
A rate at 48 hrs looks bigger than the same rate at 36. Confirm guaranteed hours and what happens if the unit calls you off.
4. Overtime & missed-shift rules
What is the OT multiplier, and is there a penalty for a missed shift? California pays daily overtime past 8 hrs.
5. One-time money
Travel reimbursement, license/certification reimbursement, and completion bonuses — and whether each is taxable.
6. Do you qualify for tax-free stipends?
If you cannot defend a tax home, the stipend is taxable and the package is worth far less. Check the Tax Home Checker first.
Want a second set of eyes? Text an offer to Nick and you'll get an honest read on whether it's fair — or browse open travel nurse jobs to compare live packages.
Estimate only. Uses 2024 federal brackets, standard deduction, 7.65% FICA, and approximate state effective rates. Does not account for benefit deductions, 401(k), local taxes, or itemized deductions. Your actual take-home depends on your filing situation, withholding choices, and credit eligibility. Always verify with your agency's payroll team.