Travel Nurse Stipends Explained: The Complete Beginner’s Guide
What Are Travel Nurse Stipends?
As a travel nurse recruiter, the most common question I hear is: “How do stipends actually work?” It’s no wonder there’s confusion – stipends often make up 60-70% of your total pay, yet many nurses don’t understand how they work.
Travel nurse stipends are non-taxable allowances that reimburse you for expenses you wouldn’t have working at home. The government recognizes that when you work away from home, you have additional costs for housing, meals, and daily expenses.
The Three Types of Stipends
Housing Stipend This covers your temporary housing costs and typically ranges from $1,000-$4,000+ monthly, depending on location. A nurse in San Francisco receives significantly more than someone in rural Iowa – and for good reason.
What it covers:
- Rent or mortgage for temporary housing
- Utilities (if not included)
- Basic furnishings
- Internet and cable
Meal & Incidental (M&IE) Stipend This daily allowance covers food and small expenses, typically $45-$85 per day depending on location.
What’s included:
- All meals throughout the day
- Laundry and dry cleaning
- Tips for services
- Personal care items
- Local transportation
Additional Stipends Some assignments offer:
- Travel reimbursement
- Licensing fee coverage
- Continuing education allowances
How Your Paycheck Works
Your travel nurse paycheck has two parts:
Taxable Hourly Rate ($20-35/hour)
- Subject to all taxes
- Used for overtime calculations
- Contributes to Social Security
Weekly Stipend Payments (Tax-Free)
- Housing stipend (paid weekly)
- Daily M&IE × 7 days
- Often 60-70% of total compensation
Key Point: Stipends are yours regardless of actual spending. If your housing stipend is $800/week but you spend $600, you keep the $200 difference tax-free.
Common Misconceptions
“Stipends are free money” Stipends reimburse legitimate expenses. While receipts aren’t required, you should justify expenses if audited.
“All locations pay the same stipends” False. Manhattan stipends can be 3x higher than rural areas based on local costs.
“You don’t need a permanent address” Wrong. You must maintain a tax home where you return between assignments to qualify for tax-free stipends.
Questions to Ask Your Recruiter
- How are stipend amounts calculated for this location?
- What happens if my contract ends early?
- Can you break down my total compensation clearly?
- Are there hidden costs in this area I should know about?
Red Flags to Watch
- Unusually high stipends (may mean low hourly rates)
- Agencies refusing to explain pay breakdowns
- Changing stipend amounts after starting
- No explanation of local cost factors
Bottom Line
Understanding stipends is crucial for making informed decisions about assignments. When you work with a transparent recruiter who explains these details upfront, you’re set up for financial success from day one.
