How is travel nurse blended hourly rate calculated?

A travel nurse blended hourly rate is calculated by adding the weekly taxable wage plus weekly tax-free housing and meal stipends, and dividing the total by contracted weekly hours (typically 36 or 48 hours).

Are travel nurse stipends taxable?

Travel nurse housing and meal stipends are non-taxable provided the nurse maintains a legitimate permanent tax home and incurs duplicated living expenses while on assignment away from home.

What is the standard overtime rate for travel nurses?

Overtime for travel nurses is calculated at 1.5 times the taxable hourly base rate, not the blended rate. However, some agency contracts offer extra-shift bonuses or elevated overtime rates for hours worked beyond 40.

Travel Nurse Pay Breakdown & Tax-Free Stipend Calculator

Contract Pay Details

Weekly Contract Hours

hrs / wk

Standard 3x12 shifts = 36 hours. 4x12 shifts = 48 hours.

Taxable Hourly Base Pay

$ / hr

The hourly wage subject to FICA and income tax withholdings.

Weekly Tax-Free Housing Stipend

$ / wk

Non-taxable lodging per diem (must maintain a qualifying tax home).

Weekly Tax-Free Meals & Incidentals (M&IE)

$ / wk

Non-taxable food and incidentals allowance.

Contract Length (Weeks)

Weeks

Hospital Bill Rate (Optional)

$ / hr

What the facility pays your staffing agency to calculate agency margin.

Blended Gross Hourly Rate

$0.00 / hr

$0.00 Total Weekly Gross

Pay Breakdown Component	Weekly Amount
Taxable Hourly Wages (36 hrs @ $28/hr)	$0.00
Tax-Free Housing Stipend	$0.00
Tax-Free Meals & Incidentals (M&IE)	$0.00
Estimated Weekly Take-Home (Net Cash)*	$0.00
Estimated Monthly Take-Home	$0.00
Total 13-Week Contract Gross Value	$0.00
Overtime Rate (1.5x on taxable base)	$0.00 / hr
Agency Gross Margin Spread	$0.00

*Net Take-Home Assumption: Estimated assuming an effective 22% combined payroll & income tax withholding on the taxable portion only. Tax-free stipends are paid 100% tax-free provided you maintain a true permanent tax home.

How Travel Nurse Pay Packages Actually Work

Unlike standard staff nursing positions where you receive a flat W2 hourly rate, travel nursing pay is structured as a split compensation package. This package is made up of three core components:

1. Taxable Base Hourly Wage: Usually ranges between $20 to $40 per hour. All federal, state, and FICA payroll taxes (Social Security & Medicare) are deducted strictly from this amount.
2. Tax-Free Housing Per Diem: A weekly non-taxable reimbursement designed to duplicate your living expenses while working away from your permanent home.
3. Tax-Free Meals & Incidentals (M&IE): A daily food stipend determined by official US General Services Administration (GSA) federal per diem schedules.

What is a "Blended Hourly Rate"?

Recruiting agencies often advertise a "blended rate" (e.g., "$85/hr blended"). This is calculated by taking your total weekly gross package (taxable pay + tax-free housing + tax-free meals) and dividing it by your contracted weekly hours (usually 36 or 48 hours). Because more than half of the package is typically non-taxable, a travel nurse earning an $82/hr blended rate takes home significantly more net cash than a staff nurse earning an $82/hr purely taxable W2 wage.

IRS Tax Home Requirements

To legally receive tax-free stipends, the IRS requires you to maintain a permanent Tax Home—a physical residence where you incur regular, recurring living expenses (mortgage, rent, utilities) while temporarily working a travel assignment. If you do not maintain a permanent tax home, all travel nurse stipends must be treated as fully taxable income.