Travel therapy pay is structured differently than permanent jobs. Learn how the pieces fit together — taxable wages, tax-free stipends, benefits — and how to make sure you're getting every dollar you deserve.
How Pay WorksUnlike a permanent job where you get a single salary, travel therapy compensation is split into multiple components. The facility pays your staffing agency a single hourly rate for your work. The agency takes its margin to cover operating costs and profit, and the remainder becomes your total pay package.
Your pay package is then divided between a taxable hourly wage and non-taxable stipends (housing, meals and incidentals, and travel reimbursement). This split structure is what makes travel therapy financially advantageous — the tax-free stipends significantly boost your take-home pay compared to a permanent position at the same total compensation.
Your base hourly rate, typically $20–30/hour. This is taxed like normal income. IRS rules require a "reasonable" taxable wage — agencies can't set this at $10/hour and put everything into stipends.
Tax-free payment for temporary housing. Based on GSA per diem lodging rates for your location. Ranges from $1,000–$3,500+/month. Keep the difference if you spend less. Learn more →
Tax-free daily allowance for food and small expenses. GSA M&IE rates range from $59–$79/day ($413–$553/week). Fixed amount — spend less, pocket more. Learn more →
One-time payment per assignment for getting to your assignment location. Typically $500–$1,500. May cover gas, flights, or mileage.
Health insurance, 401(k), CEU reimbursement, licensure fee coverage. Value varies widely between agencies. These affect total compensation even though they don't show up in your weekly check.
Some agencies offer completion bonuses, extension bonuses, or referral bonuses. These are taxable but can add $500–$2,000+ per contract.
Location matters most. High-cost cities have higher GSA rates (bigger stipends) and often higher facility rates. But rural and underserved areas sometimes offer premium rates to attract travelers.
Setting affects pay. SNF and home health assignments often pay more than outpatient. Acute care and inpatient rehab fall in between. Specialized settings may command higher rates.
Your agency's margin matters. This is the factor most travelers underestimate. The facility pays the same total regardless of which agency fills the position. The difference in your paycheck comes from how much the agency keeps. Smaller, therapist-owned agencies typically have lower overhead and pass more to you.
Discipline differences exist. PT, OT, and SLP pay varies by market demand. SLPs are often in highest demand (and highest pay) in school settings. PTs tend to earn most in outpatient ortho and home health. OTs see strong rates in acute care and SNF.
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