Quarterly Estimated Taxes for Travel Nurses: Complete 2026 Guide

Many travel nurses are surprised by a large tax bill in April—or worse, underpayment penalties. The solution? Quarterly estimated tax payments.

Here’s everything you need to know about managing quarterly taxes as a travel nurse.

Why Travel Nurses Need Quarterly Payments

Most agencies withhold taxes on your taxable wages. But there’s often a gap:

What’s withheld: Federal/state taxes on taxable hourly wages What’s not withheld: Self-employment tax (if 1099), state taxes in assignment state (sometimes), taxes on side income

If you owe more than $1,000 at tax time (after withholding), you may face underpayment penalties.

The 2026 Quarterly Due Dates

Note: Q2 is only 2 months of income but same timing.

Calculating Your Quarterly Payment

The Safe Harbor Method

Pay at least one of these amounts to avoid penalties:

1. 100% of last year’s tax liability (divided by 4)
2. 90% of current year’s expected tax liability (divided by 4)

Example:

• Last year’s total tax: $16,000
• Safe harbor per quarter: $4,000

The Precise Method

For more accurate planning:

Step 1: Estimate annual taxable income

• Taxable wages: $70,000
• Other income: $5,000
• Total: $75,000

Step 2: Calculate federal tax

• After deductions (~$14,600 standard): $60,400 taxable
• Federal tax (24% bracket): ~$11,000

Step 3: Calculate state tax

• Tax home state rate × taxable income
• Example: 5% × $70,000 = $3,500

Step 4: Add it up

• Federal: $11,000
• State: $3,500
• Total: $14,500
• Quarterly: $3,625

How to Pay

IRS Direct Pay

• Free, online payment
• Schedule payments in advance
• irs.gov/payments

EFTPS

• Electronic Federal Tax Payment System
• Requires enrollment
• Good for recurring payments

State Payments

Each state has its own system:

• California: Franchise Tax Board
• New York: NY Tax Department
• Texas: No state income tax

Multi-State Complexity

Travel nurses often work in multiple states. Tax situations include:

Scenario 1: Tax home state + assignment state

• Pay tax to both states (with credits)
• Quarterly payments to both may be needed

Scenario 2: Tax home in no-tax state

• Only pay tax to assignment state(s)
• Simpler quarterly calculation

Scenario 3: Reciprocity states

• Only pay to tax home state
• Check reciprocity agreements

Common Mistakes

1. Ignoring Stipends in Planning

Tax-free stipends don’t affect quarterly payments, but they do affect your overall financial picture. Don’t confuse total income with taxable income.

2. Under-withholding

If your agency withholds at single/0 and you’re married with dependents, you may still owe. Review your W-4.

3. Forgetting State Taxes

Federal quarterly payments don’t cover state taxes. Many states require separate quarterly payments.

4. Missing Deadlines

Late payments accrue penalties. Set calendar reminders.

The Simple Strategy

If tax planning overwhelms you:

1. Set aside 25-30% of taxable wages in a separate savings account
2. Make safe harbor payments based on last year’s tax
3. Hire a travel nurse CPA to handle the details

The peace of mind is worth the cost.

When to Hire a CPA

Consider professional help if:

• You work in 3+ states
• You have 1099 income
• You’re unsure about tax home status
• Your situation changes significantly

Travel nurse-specialized CPAs: TravelTax, HealthcareTravelersGuide, specialized CPAs on Nomad Health.

Key Takeaways

• Pay quarterly if you’ll owe >$1,000 at tax time
• Use safe harbor (100% of last year) to avoid penalties
• Set aside 25-30% of taxable wages
• Don’t forget state taxes
• Hire help if your situation is complex