The Short Answer
Learn how to calculate your true net disposable income as a travel nurse. Understand why gross pay doesn't tell the whole story and how housing costs impact your bottom line.
Read the full breakdown below for detailed analysis, examples, and actionable steps.
Pay guide
Travel Nurse Net Disposable Income Guide 2026: Calculate True Take-Home Pay
Gross pay is misleading. Your true financial picture depends on net disposable income—what's left after taxes, housing costs, and essential expenses. This guide shows you how to calculate it and why it matters.
What Is Net Disposable Income?
Net Disposable Income = Net Weekly Pay - Essential Housing Costs
This is the money you actually have left after taxes and housing—the amount you can save, invest, or spend on non-essentials. It's the most important metric for comparing contracts.
💡 Why It Matters
A contract with $3,000/week gross pay in California might leave you with less net disposable income than a $2,500/week contract in Texas, once you factor in housing costs and taxes.
How to Calculate Net Disposable Income
Step 1: Calculate Gross Weekly Pay
Gross Weekly Pay = (Hourly Rate × Weekly Hours) + Housing Stipend + Meal Stipend + Overtime
Step 2: Calculate Net Weekly Pay
Net Weekly Pay = Gross Weekly Pay - Estimated Taxes
Taxes include:
- Federal income tax (based on your tax bracket)
- State income tax (if applicable)
- FICA (Social Security + Medicare) - only on taxable income
Note: Tax-free stipends are not subject to income tax or FICA.
Step 3: Calculate Monthly Housing Cost
Research actual rent costs in your assignment location. Don't rely on state averages—city-specific data is more accurate.
Step 4: Calculate Weekly Housing Cost
Weekly Housing Cost = Monthly Rent ÷ 4.33 (average weeks per month)
Step 5: Calculate Net Disposable Income
Net Disposable Income = Net Weekly Pay - Weekly Housing Cost
Use our Pay Calculator to automate these calculations.
Real-World Example: California vs. Texas
Contract A: California
- Hourly Rate: $60/hr
- Weekly Hours: 36
- Housing Stipend: $1,500/week (tax-free)
- Meal Stipend: $400/week (tax-free)
- Gross Weekly Pay: $3,160
- Net Weekly Pay (after 24% taxes on $2,160 taxable): $2,842
- Average Monthly Rent: $2,400
- Weekly Housing Cost: $554
- Net Disposable Income: $2,288/week
Contract B: Texas
- Hourly Rate: $50/hr
- Weekly Hours: 36
- Housing Stipend: $1,200/week (tax-free)
- Meal Stipend: $350/week (tax-free)
- Gross Weekly Pay: $2,750
- Net Weekly Pay (after 24% taxes on $1,800 taxable): $2,318
- Average Monthly Rent: $1,200
- Weekly Housing Cost: $277
- Net Disposable Income: $2,041/week
Result: California contract has $247/week more net disposable income, despite only $410/week more gross pay. The difference is even larger when you factor in California's higher state taxes.
Why Gross Pay Is Misleading
Agencies often advertise high gross pay to attract nurses, but gross pay doesn't account for:
- ❌ Taxes: Federal, state, and FICA taxes reduce your take-home
- ❌ Housing Costs: High-cost states eat into your net pay
- ❌ Cost of Living: Food, gas, and other expenses vary by location
- ❌ Stipend Shortfalls: When rent exceeds stipend, you pay out of pocket
Always calculate net disposable income before accepting a contract.
Factors That Impact Net Disposable Income
1. State Tax Rates
States with no income tax (TX, FL, NV, etc.) leave more money in your pocket. High-tax states (CA, NY, etc.) reduce net pay significantly.
2. Housing Costs
Housing is your biggest expense. In high-cost states, rent can exceed stipends by $500-800/month, reducing net disposable income.
3. Stipend Amounts
Higher tax-free stipends mean more net pay. Always negotiate stipends up to GSA maximums.
4. Blended Rate
A higher blended rate (total pay ÷ total hours) with tax-free stipends is better than a lower rate with all taxable income.
How to Maximize Net Disposable Income
1. Negotiate Higher Stipends
Tax-free stipends are worth more than taxable income. Negotiate stipends up to GSA maximums.
2. Target Affordable Housing Markets
Use our Stipend vs. Inflation Report to find states where stipends cover rent.
3. Consider Tax-Friendly States
No-income-tax states (TX, FL, NV, etc.) leave more money in your pocket.
4. Factor in All Costs
Don't just look at housing. Consider food, gas, utilities, and other cost-of-living factors.
5. Use Our Calculator
Our Pay Calculator automatically calculates net disposable income, factoring in taxes, housing costs, and stipends.
Comparing Contracts: Net Disposable Income Method
When comparing contracts, always use net disposable income:
- Calculate net weekly pay for each contract
- Research actual housing costs in each location
- Calculate net disposable income for each
- Compare the results
- Factor in other considerations (location preferences, career goals, etc.)
Use our Contract Comparison Tool to compare multiple contracts side-by-side.
Common Mistakes to Avoid
- ❌ Comparing gross pay only: Doesn't account for taxes and housing
- ❌ Ignoring housing shortfalls: When rent exceeds stipend, you pay out of pocket
- ❌ Not factoring state taxes: Can reduce net pay by 5-10%
- ❌ Using state averages: City-specific rent data is more accurate
- ❌ Forgetting about cost of living: Food, gas, and utilities vary by location
Resources
Final Takeaway
Net disposable income is the only metric that matters when comparing contracts:
- Calculate net weekly pay (after taxes)
- Subtract actual housing costs
- Compare net disposable income across contracts
- Factor in other considerations (location, career goals, etc.)
- Use our tools to automate the calculations
Calculate Your Net Disposable Income
See your true take-home pay after taxes and housing costs.
Get Matched with Top-Paying Recruiters
Connect with agencies offering the best contracts in your specialty
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.
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