Travel Therapy Pay Packages Explained

Taxable hourly rate: Your base wage reported on your W-2. Subject to federal, state, and FICA taxes. It is often lower than a permanent position's wage because part of the package is paid as stipends.

Housing stipend: Non-taxable allowance for housing at your assignment location. Based on the GSA per diem lodging rate for your area (GSA per diem rates). You keep whatever you don't spend on housing.

Meals & Incidental Expenses (M&IE): Non-taxable allowance for food and daily expenses, based on the GSA M&IE rate for your area: see GSA per diem rates and how the M&IE stipend works.

Travel/relocation stipend: One-time or per-contract reimbursement for getting to your assignment. Varies by agency — some pay mileage, others a flat amount, some nothing.

Here's the math that makes travel therapy pay work. Compare two therapists earning the same weekly total:

Permanent employee: the whole weekly gross — every dollar of it taxable

Travel therapist: a smaller taxable hourly wage + non-taxable stipends — the same weekly gross, but only the hourly wage is taxed

Same gross total, but only part of it is taxed instead of all of it. What that is worth to you depends on your bracket, your state and your filing status — the pay calculator will run your own numbers. That's the power of non-taxable stipends with a valid tax home. To see a real package laid out this way, with every line shown, ask a recruiter: Find my next contract.

Your pay package is determined by what the facility pays the agency minus the agency's margin. The agency keeps its margin and passes the rest to you. This is why the same assignment through different agencies pays differently — agencies with lower margins pass more to you.

What to ask your recruiter: "Can I see a complete written breakdown of my pay package — taxable rate, housing stipend, M&IE, any deductions?" A transparent agency will provide this without hesitation.

Always compare total weekly packages — not just hourly rates. A lower hourly rate with larger stipends can beat a higher hourly rate with smaller stipends.

Factor in benefits: An agency offering a little less per week but with day-one insurance and a retirement match might cost you less overall.

Watch for hidden deductions: Some agencies deduct insurance premiums, compliance fees, or other costs from your package without clear disclosure. Ask for a full written breakdown before accepting.

Use the Travel Therapy Pay Calculator to compare packages apples-to-apples.