Travel Nursing Per Diem Rates 2026: GSA Rates, Stipends & Tax-Free Income

Per diem rates are one of the biggest financial advantages of travel nursing. These tax-free payments for housing, meals, and incidentals can represent 40-60% of your total pay package. Understanding how per diem works — and how to maximize it — can mean thousands of extra dollars per contract.

What Are Travel Nursing Per Diem Rates?

Per diem (Latin for “per day”) refers to the daily allowance for living expenses while working away from your permanent tax home. For travel nurses, per diem covers:

• Housing/Lodging: Rent or temporary housing costs
• Meals: Food expenses
• Incidentals: Laundry, tips, small travel expenses

The key benefit: Per diem payments are tax-free if you maintain a valid tax home, saving you thousands in taxes every year.

2026 GSA Per Diem Rates for Travel Nurses

The General Services Administration (GSA) sets maximum per diem rates by location. These rates serve as the IRS benchmark for tax-free stipends. Here are the rates for popular travel nurse destinations:

High-Cost Cities

Moderate-Cost Cities

Standard Rate (All Other Locations)

The standard rate applies to cities not listed in the GSA tables. Many rural and small-city assignments use this rate.

How Per Diem Is Calculated for Travel Nurses

Method 1: Agency-Set Stipends (Most Common)

Most staffing agencies set your stipend amounts based on GSA rates for your assignment location. The typical breakdown:

• Housing stipend: 70-100% of GSA lodging rate
• Meals & incidentals stipend: 70-100% of GSA M&IE rate

Example for Houston, TX assignment:

• GSA lodging rate: $157/day = $1,099/week
• Your housing stipend: $1,000-$1,100/week
• GSA M&IE rate: $69/day = $483/week
• Your meal stipend: $350-$483/week
• Total weekly per diem: $1,350-$1,583

Method 2: Negotiated Stipends

You can negotiate different stipend splits with your agency:

• Higher stipend + lower hourly rate = More tax-free income (lower tax bill)
• Lower stipend + higher hourly rate = More taxable income (higher retirement contributions)

Use our pay calculator to compare both scenarios.

Method 3: Actual Expense Reimbursement

Some agencies reimburse actual expenses instead of paying a flat stipend. This is less common and requires receipts, but can sometimes result in higher reimbursements in expensive cities.

Tax Rules for Per Diem

When Per Diem Is Tax-Free

Your per diem is tax-free when ALL of these conditions are met:

1. You maintain a tax home — a permanent residence where you pay rent/mortgage
2. You have duplicate expenses — paying for housing at both your tax home and assignment
3. Your assignment is temporary — generally under 1 year at the same location
4. Your stipends don’t exceed GSA rates — amounts above GSA limits may be taxable

Use our tax home assessment to check if you qualify.

When Per Diem Becomes Taxable

Per diem becomes fully taxable income if:

• You don’t have a valid tax home
• Your assignment exceeds 1 year at the same location
• You’re considered an “itinerant worker” by the IRS
• Your stipends significantly exceed GSA rates

Tax Savings Example

Over a 13-week contract: $6,305 more take-home pay with a valid tax home.

Calculate your specific savings with our tax calculator.

How to Maximize Your Per Diem

1. Maintain a Valid Tax Home

This is the foundation. Without a tax home, your entire pay is taxable. Keep your:

• Permanent address active
• Rent/mortgage payments current
• Utility bills in your name
• Driver’s license at tax home address

2. Choose High-GSA-Rate Locations

Higher GSA rates = higher tax-free stipends. Top GSA rate cities for 2026:

• San Francisco: $418/day
• New York: $397/day
• Boston: $378/day

3. Find Housing Below Your Stipend

If your housing stipend is $1,500/week but you find housing for $1,000/week through Furnished Finder, the $500/week difference stays in your pocket — tax-free.

4. Negotiate Stipend-Heavy Packages

Ask your recruiter to shift more compensation into stipends (up to GSA limits). This reduces your taxable income and increases tax-free income.

5. Track Everything

Keep records of:

• Tax home expenses (rent, utilities, insurance)
• Assignment contracts and locations
• Housing costs at assignment locations
• Travel receipts between assignments

Per Diem vs. Hourly Rate: Finding the Right Balance

Warning: Extremely low hourly rates with extremely high stipends can trigger IRS scrutiny. Keep stipends within GSA limits.

Per Diem Rate Resources

• Full Pay Calculator — Compare contracts with per diem calculations
• Stipend Calculator — Compare your stipend to GSA rates
• Tax Calculator — See how per diem affects your taxes
• Tax Home Assessment — Verify your tax home qualifies
• GSA Rates 2026 — Full GSA rate lookup by location

Rates updated for 2026 GSA fiscal year. Always verify current rates at gsa.gov. Tax information is educational — consult a travel nurse tax professional for personalized advice.