CPA guide • 2026 update
How to Negotiate Your Travel Nurse Contract Like a Pro
Negotiation isn’t just about the hourly rate. Done right, it protects your after-tax pay and keeps your contract compliant. Done wrong, it can trigger tax risk or leave money on the table. Here’s how to negotiate travel nurse contract terms in 2026.
The Rules: IRS and Pay Structure Basics
- Stipends must stay reasonable. Above GSA limits, the excess is taxable.
- Taxable wage floor matters. Unrealistically low taxable wages can raise audit risk.
- Reimbursements need documentation. Travel and licensing reimbursements should be clearly tracked.
The Math: Scenario A vs. Scenario B
Assume a 36-hour contract and a 25% tax rate.
| Scenario | Taxable Hourly | Weekly Stipend | Weekly Net | Audit Risk |
|---|---|---|---|---|
| Scenario A (Balanced) | $32 | $850 | $1,520 | Low |
| Scenario B (Over-stipended) | $20 | $1,300 | $1,520 | High |
Same net pay, but Scenario B carries more IRS exposure. Optimize for net pay and compliance.
Negotiation Checklist (CPA Approach)
- Ask for a full pay breakdown (taxable rate + stipends).
- Compare stipends to GSA limits for the assignment location.
- Negotiate taxable wages upward if they’re too low.
- Clarify reimbursements for travel, licensing, and scrubs.
- Confirm overtime rates and shift differentials.
- Get everything in writing before signing.
FAQ
Can I ask for a higher stipend?
Yes, but keep it within GSA caps or the excess becomes taxable.
What if the agency refuses to raise taxable wages?
Negotiate bonuses, guaranteed hours, or reimbursements—but watch for low taxable wages.
Should I take housing provided or a stipend?
It depends on the market and your flexibility. Compare the net value of both options.
Final Takeaway
A pro negotiation focuses on net pay, compliance, and documented terms. Don’t chase the highest stipend if it increases tax risk—balanced pay packages usually win long term.
Estimate your net pay in minutes
Use the calculator to compare taxable wages vs. stipends and see your true take-home.