Taxable Wages vs. Tax-Free Stipends: Travel Nurse Pay Breakdown
Understanding the difference between taxable wages and tax-free stipends is crucial for travel nurses. Here’s a detailed comparison.
Quick Comparison
| Factor | Taxable Wages | Tax-Free Stipends |
|---|---|---|
| Tax Status | Fully Taxable | Tax-Free (if qualified) |
| Typical Amount | $40-60/hr | $1,200-2,000/week |
| Tax Rate | 20-35% | 0% |
| Take-Home | 65-80% | 100% |
| Purpose | Hourly pay | Housing, meals, incidentals |
Tax Impact
Taxable Wages: Subject to federal, state (if applicable), and FICA taxes. A $50/hr rate at 36 hours/week = $1,800/week gross, but only $1,170-1,440/week after taxes (35-20% tax rate).
Tax-Free Stipends: Not subject to income taxes if you maintain a tax home and meet IRS requirements. $1,400/week in stipends = $1,400/week take-home.
Winner: Tax-free stipends provide significantly more take-home pay.
Blended Rate Calculation
Your blended rate combines both:
- Taxable: $1,800/week (36 hrs × $50/hr)
- Stipends: $1,400/week
- Total: $3,200/week
- Blended Rate: $88.89/hr ($3,200 ÷ 36 hours)
Which Should You Prioritize?
Prioritize Tax-Free Stipends if:
- You want maximum take-home pay
- You maintain a tax home
- You meet IRS requirements for tax-free stipends
Balance Both if:
- You want optimal total compensation
- You need both taxable income and tax-free benefits
- You’re maximizing your blended rate
Bottom Line
Tax-free stipends provide more take-home pay per dollar, but you need both taxable wages and stipends for optimal compensation. Use our travel nurse pay calculator to see how each affects your take-home pay.
Get Matched with Top-Paying Recruiters
Don't just read about pay—get matched with recruiters who can offer you the contracts you deserve.
Fill out the form below and we'll connect you with top travel nurse agencies in your desired state.
Looking for a contract? Get matched with top-paying recruiters.
Ready to calculate your exact take-home pay? Use our Travel Nurse Pay Calculator.
Calculate your exact take-home pay, compare contracts, and see how stipends affect your net income.
Go to Calculator