Updated July 2026 · 4 min read
Part of the Travel Nursing Hub — browse every related guide in one place.
GSA rates are the foundation of travel nurse tax-free pay—and most travel nurses only have a vague understanding of how they work. That vagueness costs money. Here's the complete picture.
The General Services Administration (GSA) publishes per diem rates for every U.S. county and city. These rates represent the maximum daily reimbursement for federal government employees traveling for work—and they set the standard the IRS uses to evaluate whether travel nurse stipends are reasonable and therefore tax-free.
Two components:
Lodging per diem: The maximum tax-free daily lodging reimbursement. Rates vary by city and county, updated annually on October 1. In 2026, rates range from the "standard" rate of $110/day in low-cost markets to $400+/day in cities like San Francisco, New York, and Honolulu.
Meals and Incidentals (M&IE) per diem: A daily allowance for food and incidental expenses. Standard rate is $68/day; high-cost areas reach $92/day. First and last day of travel is typically 75% of the M&IE rate.
Your agency's tax-free stipend is IRS-legitimate as long as it doesn't exceed a reasonable per diem for your assignment location. The GSA rate is the widely accepted benchmark for "reasonable."
If an agency pays you a stipend above the GSA rate, the excess may be considered taxable income—particularly if audited. Most agencies stay at or below GSA rates for exactly this reason.
If an agency pays you below the GSA rate, they're leaving money on the table that you could legitimately receive tax-free. This is why knowing the GSA rate for your assignment location is a negotiating tool.
Go to gsa.gov/travel/plan-book/per-diem-rates and enter the city or county of your assignment location. The site shows the fiscal year lodging and M&IE rate.
Important nuance: GSA rates apply to the county where you'll be working, not the county where you find housing. If your hospital is in San Francisco County but you're living across the bay in Oakland, the rate that applies is San Francisco's—because that's your place of business.
Markets with above-standard GSA rates in 2026 include:
San Francisco/Bay Area: Lodging rates in the $250–$340/day range. M&IE: $92/day. Travel nurses in SF assignments should be receiving maximum stipends.
New York City (Manhattan): Lodging rates exceed $350/day during peak months. Among the highest GSA rates in the country.
Honolulu, HI: Lodging rates around $280–$320/day. High cost of living makes Hawaii assignments lucrative for tax-free pay.
Boston, MA: $230–$290/day lodging depending on season.
Seattle, WA: $200–$250/day lodging.
Denver, CO: $190–$220/day. Colorado has grown significantly in housing cost.
Washington, D.C. metro: $250–$320/day across different surrounding counties.
Standard rate markets: Small cities, rural counties, and most of the Midwest and South pay the standard lodging rate of $110/day and M&IE of $68/day.
Agencies typically express stipends as weekly amounts. Here's the conversion:
Daily lodging rate × 7 = weekly lodging stipend ceiling
At the standard rate: $110 × 7 = $770/week In San Francisco: $300 × 7 = $2,100/week (plus M&IE)
M&IE weekly ceiling: Standard $68 × 7 = $476; high-cost $92 × 7 = $644
Total weekly tax-free maximum (lodging + M&IE): Standard market: $770 + $476 = $1,246/week San Francisco: $2,100 + $644 = $2,744/week
These are maximums—you need legitimate business expense (actually being away from your tax home) and appropriate documentation to receive them tax-free.
GSA rates aren't always flat year-round. The GSA applies seasonal variations in some markets. In beach and ski destinations, rates fluctuate with tourism demand. Check the rate for the specific months of your assignment, not just the annual headline figure.
When you're comparing offers or negotiating with agencies:
Example: If the GSA rate supports $2,100/week in housing stipend and the agency offers you $1,400/week, there's a potential $700/week in additional tax-free income you're leaving on the table. At 13 weeks, that's $9,100.
The GSA rate is the ceiling for tax-free reimbursement—not a guarantee that you'll spend that much or be paid that much. If you find housing for $800/month in a market where GSA supports $2,100/week, you pocket the difference tax-free. This is the housing arbitrage strategy that experienced travel nurses use intentionally.
Conversely, in very high-cost markets like San Francisco or NYC, even the GSA ceiling may not cover what you'll actually spend on housing. Research actual furnished rental prices in your assignment area before accepting the contract.
Keep copies of the GSA rate printout for each assignment period you work. If you're ever questioned by the IRS about whether your stipend was reasonable, the GSA rate printout for that location and that fiscal year is your primary piece of supporting evidence.
This, combined with proof of your tax home maintenance and your actual housing receipts, makes for a clean audit trail.
This article is for general informational purposes only and does not constitute medical, financial, or legal advice. Always verify information with current sources and consult qualified professionals for your specific situation.
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