Travel Nurse, Allied and Therapy Stipends
Understand How Stipends Work Before You Compare Offers
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Most travel clinicians instinctively judge a contract by the hourly rate—and it makes sense. It’s the number you see first. But in travel healthcare, that’s only part of the picture. For many assignments, tax-exempt stipends for housing and meals make up the bulk of your take-home pay—sometimes 40–60%.
Understanding how stipends work helps you evaluate offers more accurately, avoid tax surprises, and get the most out of every paycheck. This guide breaks down what’s new in 2025, how to stay compliant, and how to tell if an offer is really as good as it looks.
Stipends
A stipend is the tax-exempt portion of your pay package, meant to cover the added cost of living away from home while on assignment. The IRS allows these untaxed payments for:
- Housing: Rent, utilities, and other lodging costs while you are on assignment
- Meals & Incidentals (M&I): Daily meals plus small travel-related tips and fees
Important: The U.S. General Services Administration (GSA) sets tax-exempt stipend limits by country and date. What you actually receive depends on the bill rate and how your pay package is built.
Why Hourly Wage Isn’t the Whole Story
It’s common to compare offers based on hourly rate alone—but in travel healthcare, that number can be misleading. Stipends for housing and meals are often a much larger (and untaxed) part of your paycheck.
Here’s a side-by-side look at two sample contracts:
Example assumes 36 hours, CA state, single filer. Net calculated with federal and state taxes applied to wages only.
What do you notice? While the higher hourly rate might look impressive, a well-structured package with generous, tax-exempt stipends can leave you with more in your pocket. Always look at the full picture—hourly + stipend—and run a take-home estimate before accepting a contract.
What Counts As “Incidentals”?
Incidentals include small, travel-related expenses like baggage tips, hotel gratuities, and minor service fees. These are already factored into your M&IE stipend, so you won’t be reimbursed for them separately, and there’s no need to save every coffee or snack receipt.
IRS Rules That Keep Stipends Tax‑Exempt
To stay tax-exempt, your stipends must meet specific IRS guidelines. Here are the three core rules every traveler should understand:
Pro-Tip: Keep digital copies of leases, mortgage statements, and mileage logs in one folder so you are audit‑ready.
- What is a Travel Nurse Stipend?
A travel nurse stipend is a tax-exempt allowance provided to nurses who take temporary assignments away from their permanent residence. It typically covers costs like housing, meals, transportation, and incidentals, allowing travel nurses to reduce expenses while working in new locations. - What is a Travel Therapist Stipend?
A travel therapist stipend is a tax-exempt reimbursement given to physical, occupational, or speech therapists accepting assignments outside their home areas. - What is a Travel Allied Health Stipend?
A travel allied health stipend is a tax-exempt allowance provided to allied healthcare professionals, including radiologic technologists, medical laboratory technicians, respiratory therapists, and others. - Can I receive the full lodging stipend if my rent is lower than the cap?
Yes. Agencies may pay up to the lodging cap even if your actual rent is lower, as long as lodging and M&IE together stay within the county cap. - What happens if my contract extends beyond 12 months in one city?
If you expect to work in the same metro area longer than 12 months, the IRS treats the job as permanent and stipends become taxable wages from that point forward. - Do I need to keep every receipt?
Keep proof of duplicate expenses such as your home lease or mortgage, assignment housing invoices, and a mileage log.
Sources: U.S. General Services Administration (GSA), Internal Revenue Service (IRS) Publication 463
Got questions? Chat with a FlexCare recruiter
Your recruiter can walk you through your exact take‑home pay and make sure every stipend follows IRS and GSA guidelines. No math degree required
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