The Short Answer
State-by-state analysis of travel nurse savings potential. Which states offer the best combination of pay, taxes, and cost of living?
Read the full breakdown below for detailed analysis, examples, and actionable steps.
High pay doesn’t always mean high savings. A $3,000/week contract in San Francisco might leave you with less than a $2,400/week contract in Phoenix.
Here’s a state-by-state analysis of where travel nurses actually keep the most money.
The Savings Formula
Net Savings = Pay - Taxes - Cost of Living
The best states optimize all three:
- High pay rates
- Low or no state income tax
- Affordable cost of living
Top 10 States for Travel Nurse Savings
Based on 2026 pay data, tax rates, and cost of living:
| Rank | State | Weekly Pay | State Tax | COL Index | Est. Monthly Savings |
|---|---|---|---|---|---|
| 1 | Texas | $2,700 | 0% | 85 | $5,800 |
| 2 | Florida | $2,600 | 0% | 90 | $5,400 |
| 3 | Nevada | $2,900 | 0% | 95 | $5,200 |
| 4 | Tennessee | $2,400 | 0% | 80 | $5,000 |
| 5 | Washington | $3,000 | 0% | 105 | $4,900 |
| 6 | Arizona | $2,600 | 2.5% | 88 | $4,700 |
| 7 | Georgia | $2,500 | 5.5% | 82 | $4,400 |
| 8 | North Carolina | $2,450 | 5.25% | 85 | $4,200 |
| 9 | Colorado | $2,700 | 4.4% | 100 | $4,100 |
| 10 | Ohio | $2,400 | 4% | 82 | $4,000 |
Why Texas Tops the List
Texas combines three advantages:
High demand:
- Large population needs nurses
- Multiple major metro areas
- Consistent contract availability
No state income tax:
- Keep 100% of state tax portion
- 5-7% immediate savings vs. high-tax states
Affordable living:
- Housing well below GSA stipends
- Low overall cost of living
- Pocket significant stipend surplus
State Tax Impact Analysis
No-Tax State Advantage
At $100,000 annual taxable income:
| Scenario | State Tax | Annual Savings |
|---|---|---|
| California (10%) | -$10,000 | $0 |
| New York (8%) | -$8,000 | $2,000 |
| Texas (0%) | $0 | $10,000 |
Working in Texas vs. California = $10,000/year more in your pocket.
But Consider: Pay Differentials
| State | Weekly Rate | State Tax | Net Weekly |
|---|---|---|---|
| California | $3,300 | -$330 | $2,970 |
| Texas | $2,700 | $0 | $2,700 |
California’s higher pay partially offsets taxes. The net difference is ~$270/week, not the full tax amount.
Cost of Living Deep Dive
Housing Costs vs. GSA Stipends
| City | GSA Lodging | Actual Rent | Monthly Profit |
|---|---|---|---|
| San Antonio, TX | $107/day | $1,200 | $2,010 |
| Dallas, TX | $144/day | $1,600 | $2,720 |
| Tampa, FL | $124/day | $1,700 | $2,020 |
| Phoenix, AZ | $132/day | $1,400 | $2,560 |
| Denver, CO | $191/day | $2,200 | $3,530 |
Even lower GSA rates can yield good housing profit if actual rent is proportionally lower.
Strategy: Geographic Arbitrage
The Concept
Work in high-pay areas, live in low-cost areas:
- Take California contracts, live just over Nevada border
- Take NYC contracts, live in New Jersey
- Take Boston contracts, live in New Hampshire
Cross-Border Examples
| Work State | Live State | Pay | Tax Home Tax | Net Benefit |
|---|---|---|---|---|
| CA | NV | CA rates | 0% | Best of both |
| NY | PA | NY rates | 3% (vs 8%) | +$5K/year |
| MA | NH | MA rates | 0% | Major savings |
Worst States for Savings
States where savings potential is lowest:
| State | Issue | Impact |
|---|---|---|
| California | High tax + high COL | Eat into high pay |
| New York | Similar to CA | Metro areas expensive |
| Hawaii | Highest COL nationwide | Pay doesn’t compensate |
| Connecticut | High tax + high COL | Limited upside |
| Massachusetts | High COL in Boston metro | Better outside Boston |
Building Your Strategy
If Maximizing Savings is #1 Priority
- Establish tax home in no-tax state
- Take contracts in no/low-tax states
- Choose mid-sized cities over major metros
- Pocket housing stipend surplus
If Balance Matters
- Accept some high-tax states for variety
- Mix expensive and affordable assignments
- Take one “maximize” contract, one “lifestyle” contract
- Use tax credits appropriately
Example Year
- Contract 1: Texas (Dallas) - High savings
- Contract 2: California (San Diego) - Lifestyle
- Contract 3: Florida (Tampa) - High savings
- Net result: Strong savings + variety
Key Takeaways
- Texas, Florida, Nevada, Tennessee offer best savings potential
- No state income tax = 5-10% immediate advantage
- Cost of living matters as much as pay rate
- Housing arbitrage can add $2,000-3,500/month
- High-pay states aren’t always high-savings states
- Geographic arbitrage optimizes both
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