The Full Pay Package Breakdown
When a facility needs a travel therapist, they agree to pay the staffing agency a single hourly rate for every hour you work. This is the total amount of money available. Everything — your pay, your stipends, agency costs, and agency profit — comes from this one number. Most facilities prohibit recruiters from disclosing this number directly — it’s typically written into the staffing contract as confidential. What you can ask for, and should always ask for, is a full line-item breakdown of your pay package: taxable hourly rate, housing stipend, M&IE stipend, travel reimbursement, benefits valuation, overtime rate, and any guaranteed-hours clauses. Compare offers based on total weekly take-home, not on the hourly figure alone.
Your agency then structures your pay package from that total. A transparent agency will show you every line item in writing before you sign. Here's what you should see:
Taxable Hourly Rate
Your base wage, reported on your W-2 and taxed as normal income. Typically $20–30/hour for travel therapists. Some agencies set this higher and reduce stipends; others minimize it to maximize tax-free pay. The IRS requires this to be "reasonable" — very low taxable rates ($10–15/hour) can trigger scrutiny.
Housing Stipend
Non-taxable weekly or monthly payment based on GSA lodging rates for your assignment location. This is usually the largest tax-free component. You choose how to spend it — find housing cheaper than the stipend and pocket the difference.
Meals & Incidentals (M&IE)
Non-taxable daily allowance based on GSA M&IE rates ($59–$79/day depending on location). Fixed amount regardless of actual spending. Over 13 weeks, this alone can be $5,000–$7,000+ tax-free.
Travel Reimbursement
One-time or per-assignment payment for travel costs. May be taxable or non-taxable depending on structure. Typically $500–$1,500.
Example Pay Package
Sample PT package — Denver, CO (13 weeks):
Taxable hourly rate: $25/hour × 40 hrs = $1,000/week
Housing stipend: $1,800/month = ~$415/week
M&IE: $69/day × 7 = $483/week
Travel reimbursement: $1,000 one-time
Weekly gross: ~$1,898 (but only $1,000 is taxed)
Weekly take-home: ~$1,700+ (estimated after taxes on $1,000)
A permanent PT at the same facility earning $1,898/week gross would take home significantly less because the entire amount is taxed.
Comparing Pay Packages
When you're evaluating offers from different agencies for the same assignment (or different assignments), always compare the full pay package breakdown in writing. Don't compare blended rates — one agency might offer "$2,100/week" that's mostly taxable, while another offers "$1,900/week" that's mostly tax-free. The lower number might actually put more money in your pocket.
The only way to compare accurately is to see every line item. Ask your recruiter for the full breakdown. If they won't provide it, that's one of the biggest red flags in the industry. Learn about recruiter red flags →