How California taxes a travel nurse contract
A travel contract pays a taxable hourly wage plus a weekly housing stipend and a meals and incidentals (M&IE) stipend. With a qualifying tax home, and with stipends at or under the General Services Administration (GSA) rate for the assignment county, the stipends are not wages. Everything below applies to the taxable wage only.
- Federal income tax. Tax year 2026 brackets on the annualized taxable wage after the $16,100 standard deduction for a single filer, divided back to a week.
- FICA. 6.2% Social Security up to the 2026 wage base of $184,500, plus 1.45% Medicare.
- California personal income tax. The Franchise Tax Board’s brackets on the annualized taxable wage after the $5,706 California standard deduction. This page uses the 2025 Schedule X for single filers, the latest rate schedule the Franchise Tax Board has published; 2026 thresholds are indexed for inflation when the FTB releases them. California rates run from 1% to 12.3%, plus 1% on taxable income over $1 million. California also withholds State Disability Insurance (SDI) from wages: withheld at 1.3% on all wages in 2026, with no wage cap since January 1, 2024.
- Nonresidents. If your tax home is in another state, California still taxes the pay for work you do in California, on Form 540NR. Your home state may tax it too and usually gives a credit for the tax paid here.
Taxable weekly pay = hourly rate × hoursAnnual taxable wage = taxable weekly pay × 52Weekly federal tax = federal brackets on (annual taxable wage − $16,100) ÷ 52Weekly FICA = taxable weekly pay × 7.65%Weekly California tax = California brackets on (annual taxable wage − $5,706) ÷ 52Weekly SDI = taxable weekly pay × 1.3%Net weekly take-home = taxable weekly pay − all of the above + housing stipend + M&IE stipend
Worked example: a 13-week contract in Los Angeles
A single filer with a qualifying tax home takes a 13-week, 36-hour-a-week contract in Los Angeles at $55 an hour taxable, with a $1,300 weekly housing stipend and a $602 weekly M&IE stipend. Both are under the GSA fiscal year 2027 rates for Los Angeles: $199 a night for lodging ($1,393 a week) and $86 a day for M&IE ($602 a week).
| Gross weekly pay (the number a recruiter quotes) | $3,882.00 |
| Taxable portion: $55 × 36 hours | $1,980.00 |
| Stipend portion: housing + meals and incidentals | $1,902.00 |
| Estimated taxes on the taxable portion | |
| Federal income tax: $102,960 a year less the $16,100 standard deduction | −$265.79 |
| Social Security: 6.2% | −$122.76 |
| Medicare: 1.45% | −$28.71 |
| California personal income tax | −$105.45 |
| State Disability Insurance (SDI): 1.3% | −$25.74 |
| Total estimated tax (27.7% of the taxable portion) | −$548.45 |
| Net weekly take-home | $3,333.55 |
| Net for the full 13 weeks | $43,336.15 |
Without a qualifying tax home the same contract is $3,882.00 a week of taxable wages, and net take-home falls to about $2,557.58: $775.97 a week, or $10,088 over 13 weeks, that depends on the tax home alone. The rules are in the travel nurse tax home rules.
Three contract sizes
The same 13-week, 36-hour assignment at three taxable rates, stipends at or under the Los Angeles GSA rate. These are example contracts to show how the split moves the result, not market averages.
| Contract | Gross a week | Taxable | Stipends | Tax | Net a week | Net for 13 weeks |
|---|---|---|---|---|---|---|
| $45/hr + $1,610 stipends | $3,230 | $1,620 | $1,610 | $404 | $2,826 | $36,744 |
| $55/hr + $1,902 stipends | $3,882 | $1,980 | $1,902 | $548 | $3,334 | $43,336 |
| $65/hr + $1,995 stipends | $4,335 | $2,340 | $1,995 | $693 | $3,642 | $47,341 |
For scale, the Bureau of Labor Statistics (BLS) puts the California registered nurse annual mean wage at $150,280 for May 2025, about $72.25 an hour over a 2,080-hour year. A taxable rate far below the local staff wage paired with maximum stipends is what the IRS calls wage recharacterization (Revenue Ruling 2012-25), and it puts the stipends at risk.
GSA stipend ceilings in California, fiscal year 2027
Weekly ceilings for the largest California travel markets, from the GSA nightly lodging and daily M&IE rates times 7. Where lodging changes by season the range covers the lowest and highest month. Every county is in the full GSA per diem table, and the travel nurse stipend calculator checks an offer against them.
| Location | Housing, per week | M&IE, per week |
|---|---|---|
| Los Angeles | $1,393 | $602 |
| San Francisco | $1,624 to $2,275 | $644 |
| Oakland | $1,064 | $644 |
| Sunnyvale / Palo Alto / San Jose | $1,526 | $644 |
| San Diego | $1,456 to $1,743 | $602 |
| Sacramento | $1,092 | $602 |
| Fresno | $952 | $602 |
| Bakersfield / Ridgecrest | $1,148 | $518 |
| Barstow / Ontario / Victorville | $903 | $602 |
| Rest of the state (standard rate) | $791 | $476 |
What these examples assume
- A single filer, the standard deduction, no credits and no other income for the year. Married filers, dependents and income from other states all change the result.
- Pay annualized over 52 weeks to find the bracket. Unpaid weeks between contracts lower real annual income; the agency versus staff nursing comparison counts them.
- No pre-tax deductions such as health premiums or retirement contributions, which lower the taxable wage.
- Withholding on an actual paystub can differ week to week even when the annual tax is the same.
Frequently asked questions
How much does a travel nurse take home in California?
It depends on the split between taxable wage and stipends more than on the headline number. In this page's main example, a 13-week, 36-hour contract paying $3,882 a week gross leaves about $3,334 a week for a single filer with a qualifying tax home, and about $2,558 without one.
Are travel nurse stipends taxed in California?
Housing and meals and incidentals stipends are not wages when you keep a qualifying tax home and the stipends stay at or under the GSA rate for the assignment location, so neither federal nor California income tax applies to them. Without a tax home they are taxable wages in full.
Do I pay California income tax if my tax home is in another state?
Yes, on the pay for work you do in California. The Franchise Tax Board taxes nonresidents on income from services performed in California, reported on Form 540NR. Your home state may also tax it and usually gives a credit for tax paid to California.
What is SDI on a California paycheck?
State Disability Insurance (SDI) is a payroll tax withheld from wages in California. In 2026 it is 1.3% of all wages with no cap. It applies to the taxable wage, not to stipends.
What is the GSA housing limit for a travel nurse in Los Angeles?
For fiscal year 2027 (October 1, 2026 to September 30, 2027) the GSA lodging rate for Los Angeles is $199 a night, or $1,393 a week, and meals and incidentals are $86 a day, or $602 a week.
Related tools and guides
- Travel nurse take-home pay calculator: run your own contract in any state.
- Travel nurse stipend calculator: check housing and meals stipends against the GSA limit.
- California nurse salary: staff RN, nurse practitioner and travel pay in California.
- Travel nursing in California: licensure and the California travel market.
An educational estimate, not tax advice. Tax home status and multi-state filing depend on your own facts. Check your situation with a tax professional who works with travel nurses.