What Are Travel Therapy Stipends?
When you work a travel therapy contract away from your tax home, your pay package includes two types of income: a taxable hourly wage and tax-free stipends. Stipends reimburse you for the cost of living away from home — specifically for housing and meals/incidentals.
These stipends are the primary reason travel therapists earn significantly more than permanent employees. Because you don't pay taxes on this portion of your income, your after-tax take-home is substantially higher.
Two Types of Stipends
Housing Stipend: Covers lodging expenses at your assignment location. Based on GSA lodging rates for the area.
Meals & Incidentals (M&IE): Covers daily expenses like food, transportation, and laundry. Also based on GSA per diem rates.
How Are Stipend Amounts Determined?
The General Services Administration (GSA) publishes maximum per diem rates for every city and county in the U.S. Your stipends cannot exceed these maximums or they become taxable. Rates vary dramatically by location — a travel therapist in San Francisco receives much higher stipends than one in rural Kansas.
💰 Example Pay Package Breakdown
Travel PT working 40 hrs/week in Denver, CO:
A permanent PT in Denver earning $38/hr would take home ~$1,140/week. That's $570/week less — or nearly $30,000/year.
How to Maximize Your Stipends
Choose high-GSA locations. Major cities and high cost-of-living areas have higher GSA rates, which means higher tax-free stipends.
Find affordable housing. If your stipend is $770/week but you find housing for $500/week, you pocket the $270 difference tax-free.
Maintain your tax home properly. If you lose your tax home status, all stipends become taxable. Read our complete tax guide for details.
Work with an agency that maximizes your stipend allocation. Agencies structure pay differently — some put more into taxable wages, others maximize stipends within GSA limits. A transparent agency will show you exactly how your pay is structured.
Get the GSA Rate Lookup Cheat Sheet
Quick-reference guide to looking up stipend maximums for any location in the U.S.