Travel Therapy Pay Packages Explained

Taxable hourly rate: Your base wage reported on your W-2. Subject to federal, state, and FICA taxes. Typically $20-$35/hr for therapists — lower than permanent positions because compensation shifts to stipends.

Housing stipend: Non-taxable allowance for housing at your assignment location. Based on GSA per diem rates. Ranges from $1,000-$3,000+/month depending on location. You keep whatever you don't spend on housing.

Meals & Incidental Expenses (M&IE): Non-taxable allowance for food and daily expenses. Typically $200-$800/month based on GSA rates for your area.

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 $2,400/week total:

Permanent employee: $2,400/week gross → ~$1,750/week after taxes (~27% effective rate)

Travel therapist: $900/week taxable + $1,500/week stipends → $710 after tax + $1,500 tax-free = $2,210/week take-home

Same gross total, but the travel therapist takes home $460 more per week — $23,920 more per year. That's the power of non-taxable stipends with a valid tax home.

Your pay package is determined by what the facility pays the agency minus the agency's margin. Agencies typically keep 20-35% and pass 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 $28/hr rate with $1,800/week in stipends beats a $35/hr rate with $800/week in stipends.

Factor in benefits: An agency offering $50/week less but with day-one insurance and 401k 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.