How Does Travel Nurse Pay Work?
Curious how travel nurse pay works? We’ve got you covered. Travel nursing can be a lucrative career path because pay includes more than your standard hourly wage.
Packages often include stipends for housing, meals, and incidentals, and sometimes other benefits like bonuses, insurance, travel and license reimbursements, and more! Understanding how these benefits add up can help you maximize your earnings and choose opportunities that align with your lifestyle, skills, and goals.
Keep reading to learn more about how traveling nurse pay works, including base pay, stipends, bonuses, how to qualify for pay packages, and frequently asked questions.
What’s Included in a Travel Nurse Pay Package?
Most travel nurse pay packages include:
- Base hourly rate (taxed), which is your standard hourly rate.
- Housing stipends (non-taxed) to cover short-term living arrangements. As a travel nurse, you can find and compare fully furnished, short-term rentals on websites like Furnished Finder and Airbnb.
- Meal and incidentals stipends (non-taxed) to cover food and minor daily living expenses such as laundry, taxis, bus fare, parking, etc.
Some packages also include additional stipends such as:
- Travel reimbursements to cover allowances and relocation costs when moving to a new assignment destination. This stipend is typically paid in two installments: one at the start of the assignment and one at the end.
- Insurance and 401(k) contributions, including health insurance, dental insurance, and/or retirements benefits. At Gifted Healthcare, you’ll receive Day-One Medical, Dental & Vision coverage through a trusted national provider.
- Licensure reimbursements to cover the cost of state licenses or license transfers required for assignments.
- Sign-on and completion bonuses, which are special incentives for starting or finishing assignments. Bonuses may also be provided for crisis assignments during public health emergencies and natural disasters. However, keep in mind that these aren’t guaranteed. If your assignment includes bonuses, we’ll always clarify that upfront before you start.
- Referral bonuses may also be offered if you refer other qualified nurses to the agency or facility. At Gifted Healthcare, you can earn up to $2,000 for every qualified nurse you refer!
- Continuing education stipends to help you stay up to date with current medical practices in your specialty.
- Access to employee assistance programs, which provide confidential support and resources for mental health, stress management, and personal or work-related challenges.
These benefits aren’t included in every pay package. Always go over the details with your recruiter before accepting an assignment to ensure you feel well-prepared and informed before embarking on your next travel nursing journey.
Understanding Tax Homes and Non-Taxable Stipends
To receive non-taxable stipends for housing, meals, and incidentals, travel nurses must meet certain IRS requirements:
Maintain a Tax Home
A tax home is your permanent place of residence (a lease, mortgage, or room in a family home) where you continue to pay expenses like rent, mortgage, or utilities while you’re away on assignment. If you move permanently or stop maintaining that home, your stipends may become taxable.
Follow the 12-Month Rule
The IRS’s 12-month rule states that if you work in the same location for more than 12 months, it may become your new tax home, meaning your stipends become taxable. Travel nurses can avoid this by taking contracts in different locations or limiting time in one spot.
Provide Proof of Duplicate Expenses
You must show that you’re paying expenses for both your tax home and your travel housing. This shows that you have “duplicate living expenses,” which is essential to maintain your tax-free stipends. Keep in mind that the IRS looks for ongoing financial responsibility, not just having a mailing address.
Follow GSA Per Diem Rates
Housing and M&IE (meals & incidentals) stipends are meant to offset the extra costs of working away from home. As long as your stipends stay within the GSA per diem rates and meet IRS rules, they’ll remain tax-free. These rates vary by state.
Document and Keep Records
Keep records or receipts for your housing and expenses. Without documentation or if any of the above requirements aren’t met, some or all of your stipends may be considered taxable.
How to Qualify for a Travel Nurse Pay Package
To become a travel nurse, you need a minimum of 1-2 years of experience in your nursing specialty. At Gifted, we typically require 1 year of experience.
And remember—the IRS allows housing and meal stipends to be non-taxable only if they’re temporary expenses, which means you must maintain your permanent home while traveling. In other words, your travel housing costs are in addition to what you’re already paying for your primary residence.
Once that's sorted, your pay package is usually quoted as a gross weekly amount, which is the total before taxes. Your net weekly pay is what actually gets deposited into your account.
You can use websites such as Pay Check City to calculate your net weekly take-home amount based on your pay package and tax options.
What Factors Influence Travel Nurse Compensation?
There are a few factors that can influence travel nurse compensation, including:
- Nursing specialty and demand: Nursing specialties, like ICU, PICU, OR, L&D, and ER, are often in higher demand, which can lead to increased pay and more assignment opportunities.
- Assignment location: Assignments in high-demand or densely populated areas, such as major cities, typically offer higher hourly wages to travel nurses. However, assignments in rural areas can be just as lucrative, and with lower housing costs.
- Urgency to fill the role: Short-term, last-minute, and critical-need assignments may come with increased pay and/or bonuses.
- Type of shift and hours worked: Travel nurses who work the night shift typically receive higher wages than those who work a typical day shift. Working weekends and overtime can also come with increased rates.
- How the agency or facility structures the pay package: Staffing agencies and facilities structure pay packages differently, including stipends, bonuses, and benefits. At Gifted, our recruiters walk you through your entire pay package and make sure you understand every detail before accepting your assignment!
Benefits of Travel Nursing with Gifted Healthcare
When you accept a travel nursing contract with Gifted Healthcare, you’ll receive:
- Career flexibility: Choose when, where, and how you want to work.
- Day-one medical, dental, and vision coverage: Coverage through a trusted national provider starts immediately.
- Housing and meal stipends: Support to make your travel experience comfortable and stress-free.
- Contracts with premier facilities around the country: Gain valuable experience at leading hospitals and healthcare facilities in dream locations.
- Referral bonuses: Earn up to $2,000 for every friend you refer!
- Ongoing career support: Dedicated Career Specialists are available anytime you need guidance, and a dedicated recruiter is with you every step of the way.
- Around-the-clock clinical support: 24/7 access to a Social Worker and Gifted’s Chief Nursing Officer.
- Comprehensive protection: Short- and long-term disability coverage plus AD&D insurance.
Our passionate recruiters at Gifted Healthcare are here to support you every step of the way. Apply now to speak with one and find your next travel nursing assignment!
Frequently Asked Questions About Travel Nurse Stipends
Who sets the rules for travel nurse stipends?
Federal (IRS, GSA) rules govern tax treatment and per diem rates. However, state laws/regulations may impose additional rules about what employers must provide or reimburse, what contract clauses are allowable, etc. Some states have travel reimbursement rules for state employees or special licensees.
How do travel nurse agencies typically handle housing and stipends?
Agencies typically offer two choices: agency-provided housing (in which case you typically don’t receive a housing stipend) or find your own lodging and receive a stipend. Stipend amounts are generally based on GSA per diem caps for housing, meals, and incidentals, and payment schedules may vary (weekly, biweekly, monthly, upfront, or reimbursement).
What counts as “incidentals” regarding stipends?
Incidentals generally include small miscellaneous, travel‐related costs: tips, possibly laundry, small fees (e.g. for baggage), etc. They usually do not include things like major transportation (taxi fares beyond incidental tips), lodging taxes, or major utilities unless specifically covered.
What are the benefits of working with a travel nurse agency?
Partnering with Gifted Healthcare, a nurse-founded agency, means you’re supported by people who understand your profession. We provide competitive pay packages, day-one benefits, premier facility contracts, and 24/7 access to clinical leaders so you can grow your career with confidence.
How often do travel nurses receive stipends?
Most travel nurses receive stipends weekly, since they're usually included in your regular paycheck. At Gifted Healthcare, stipends are paid out on the same schedule as your wages, giving you consistent support for housing and meals during your assignments.
How do travel nurses handle taxes?
Travel nurses often file for taxes in multiple states and need to keep records of housing costs and duplicate expenses. We encourage our nurses to work with tax professionals experienced in travel nursing to maximize take-home pay and stay compliant.
Is travel nursing worth it financially?
For many nurses, yes! Travel nursing offers higher pay, stipends, and bonuses compared to traditional staff roles. With Gifted Healthcare’s competitive packages and nurse-focused support, many of our travelers find the financial benefits more than worth the adventure.
To learn more about how to start travel nursing, read our complete guide here.
Find Your Next Travel Nursing Assignment with Gifted Healthcare!
Gifted Healthcare has earned recognition as a Best Travel Nurse Agency by The Gypsy Nurse, the world’s largest online community for travel nurses, and as a Top 20 Travel Nursing Company by BluePipes, the leading professional networking platform in healthcare, so you’re in good hands!
Connect with a recruiter to join the Gifted Family today! Apply here.
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