Stipend guide

Travel Nurse GSA Rates Explained 2026: Complete Guide to Per Diem Limits

GSA per diem rates determine the maximum tax-free stipends you can receive. Understanding how they work is crucial for maximizing your tax-free income and avoiding IRS issues.

What Are GSA Rates?

GSA (General Services Administration) per diem rates are the maximum daily allowances for lodging, meals, and incidentals set by the federal government. For travel nurses, these rates determine the maximum tax-free stipends you can receive.

Key Point: Stipends within GSA limits are tax-free. Stipends above GSA limits are taxable income.

GSA Rate Components

GSA rates have three components:

1. Lodging Rate

Maximum tax-free housing stipend per day. This is the most important component for travel nurses.

• Weekly Maximum: Lodging Rate × 7 days
• Monthly Maximum: Weekly Maximum × 4.33 (average weeks per month)

2. Meals & Incidentals Rate

Maximum tax-free meal stipend per day.

• Weekly Maximum: Meals Rate × 7 days

3. Miscellaneous Rate

Small incidental expenses (usually $5/day). Often included in the meals rate.

How GSA Rates Are Set

GSA rates are updated annually in October based on:

• Local hotel/motel rates
• Cost of living data
• Market research
• Federal employee travel data

Rates vary by location—high-cost cities (San Francisco, NYC) have higher rates than rural areas.

GSA Rates by Location Type

Standard Rates (Most Locations)

Most locations use standard GSA rates based on state averages. These are lower than city-specific rates.

Non-Standard Areas (High-Cost Cities)

Major cities with high costs have their own GSA rates, which are typically higher:

• San Francisco, CA: $300/day lodging
• New York, NY: $280/day lodging
• Boston, MA: $250/day lodging
• Los Angeles, CA: $240/day lodging
• Seattle, WA: $220/day lodging

Use our GSA Rates tool to find rates for your specific location.

Why GSA Rates Matter for Travel Nurses

1. Tax-Free Income Limit

GSA rates set the maximum tax-free stipend you can receive. Amounts above GSA rates are taxable income.

2. Negotiation Tool

If your agency offers stipends below GSA maximums, you're leaving tax-free money on the table. Always negotiate up to GSA maximums.

3. IRS Compliance

Receiving stipends above GSA rates can trigger IRS scrutiny. Staying within GSA limits helps ensure compliance.

4. Contract Comparison

GSA rates help you compare contracts fairly. A contract with stipends at GSA max is better than one below max, even if gross pay is similar.

How to Find GSA Rates for Your Location

1. Use our GSA Rates tool: Search by state and city
2. Check GSA.gov: Official source, but harder to navigate
3. Ask your agency: They should know GSA rates for your assignment location

Common GSA Rate Misconceptions

Misconception 1: "GSA rates are what I should receive"

Reality: GSA rates are maximums, not minimums. Many agencies offer stipends below GSA max. Always negotiate up to the maximum.

Misconception 2: "GSA rates cover actual housing costs"

Reality: In high-cost states, GSA rates often don't cover actual rent. You may need to pay out of pocket.

Misconception 3: "GSA rates are the same everywhere"

Reality: GSA rates vary significantly by location. San Francisco's rate is 3x higher than rural Mississippi.

Misconception 4: "I can receive more than GSA rates tax-free"

Reality: Any amount above GSA rates is taxable income. There's no exception.

How to Use GSA Rates in Contract Negotiation

1. Research GSA rates: Find the maximum for your assignment location
2. Audit your offer: Use our Stipend Auditor to see if you're being shortchanged
3. Negotiate up: If your offer is below GSA max, ask for the maximum
4. Compare agencies: Some agencies consistently offer higher stipends

GSA Rate Updates

GSA rates are updated annually in October. Always verify current rates before negotiating contracts.

2026 Rates: Updated October 2025, effective through September 2026.

Resources

• GSA Rates by Location
• Stipend Auditor
• Stipend vs. Inflation Report
• Official GSA Per Diem Rates

Final Takeaway

GSA rates are crucial for maximizing tax-free income:

1. GSA rates set maximum tax-free stipend limits
2. Always negotiate stipends up to GSA maximums
3. Rates vary by location—check your specific city
4. Amounts above GSA rates are taxable
5. Use our tools to find and audit GSA rates