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Compare travel nurse contractor income vs staff nurse salary with taxes and expenses.
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Travel nursing and per diem contracts often pay through 1099, while staff positions are W-2. The hourly rates for travel nurses look much higher, but you're paying full self-employment tax, covering your own insurance, and absorbing travel costs. This calculator shows whether the premium pay actually translates to more take-home money.
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Travel and contract nursing can absolutely pay more, but the net advantage depends on the full package. Housing stipends, licensing costs, travel, benefits, and assignment gaps can take a large bite out of what looks like a huge hourly premium. The real question is not whether contract pay is higher per shift; it is whether the premium is still attractive after all the non-hospital costs land on you.
Tax treatment of stipends is one of the biggest swing factors in this field. If you maintain a legitimate tax home and handle assignments correctly, tax-free housing and meal stipends can materially improve take-home pay, but if you do not meet the rules those amounts can become taxable. That makes compliance a financial issue, not just an administrative one.
W-2 staff roles also carry hidden stability that matters in healthcare. Guaranteed hours, employer coverage, paid leave, and predictable schedules may be worth more than they look when burnout or assignment gaps are real risks. Contract nursing tends to win when the premium is strong and the lifestyle trade-off is genuinely acceptable, not just when the hourly rate looks exciting on Instagram.
Travel nurses often gross 50–100% more per hour than staff nurses, but the net difference is smaller. After self-employment tax, health insurance, travel costs, licensing fees, and housing expenses (when stipend doesn't fully cover it), the effective premium is typically 20–40%. The trade-off is instability and time away from home.
Not always. Housing and meal stipends are tax-free if you maintain a "tax home" (a permanent residence). If you don't have a permanent home base, stipends become taxable income. This is a major tax advantage of travel nursing — the tax-free portion can be worth $20,000–$30,000/year but requires careful compliance.
Deductible expenses include: state licensing and certification fees, continuing education, malpractice insurance, uniforms and scrubs, travel between assignments, meals during travel, medical equipment, professional memberships, and a portion of phone/internet. These can total $5,000–$12,000 per year.
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Disclaimer
This calculator provides estimates for planning purposes only. It uses projected 2026 federal tax brackets and standard deductions. State tax is approximated using a flat rate. W-2 benefits are valued at the amounts entered in the scenario. Your actual tax obligations depend on your specific situation, deductions, credits, and jurisdiction. Consult a tax professional for personalized advice.