Reviewed by Stephanie Ungles, BSN, RN, CEO, CK Medical Staffing
When comparing a travel nurse vs. local contract nurse, many of the day to day responsibilities may look similar, but there can be important differences in assignment location, compensation, flexibility and lifestyle. Travel nursing isn’t the only way to work a contract nursing position. Many nurses can choose between travel contracts and local contracts, and the two options can look very similar at first glance.
Both typically involve working a temporary assignment for a healthcare facility, often for a set number of weeks. The biggest differences usually involve how compensation is structured, whether you qualify for tax-free travel stipends, and how far you live from the assignment.
Understanding those differences can help you determine which type of contract makes the most sense for your situation.
What Is a Travel Nurse Contract?
A travel nurse contract is a temporary nursing assignment that generally requires the nurse to work away from their tax home.
Travel nurses may receive a compensation package that combines taxable hourly wages with non-taxable housing, meals, and incidental stipends when they meet the applicable IRS requirements.
Contracts are commonly around 13 weeks, although assignment lengths can vary considerably depending on the facility and its staffing needs.
What Is a Local Nursing Contract?
A local contract is also a temporary nursing assignment, but it is designed for nurses who live close enough to the facility that they are not working as qualifying travelers.
Instead of receiving a travel stipend, local contract nurses are generally paid taxable wages.
This can be an attractive option for nurses who want the flexibility and earning potential of contract work without relocating or maintaining temporary housing away from home.
Do Local Contract Nurses Get Tax-Free Stipends?
Generally, simply working a contract position does not automatically make someone eligible for tax-free travel stipends.
Eligibility depends on the nurse’s individual tax situation and whether the assignment qualifies as travel away from their tax home under applicable IRS rules.
This is also why nurses should be cautious of blanket rules such as “you only need to live 50 miles away.” Distance policies may be used by hospitals or staffing agencies, but a mileage rule by itself does not determine whether someone qualifies for tax-free treatment.
For questions about an individual tax situation, nurses should consult a qualified tax professional.
Does a Travel Contract Pay More Than a Local Contract?
Not necessarily.
A travel position may advertise a higher weekly package because part of the compensation can include tax-free stipends. A local contract may instead place more of the compensation into taxable hourly wages.
The actual difference depends on factors such as the facility’s bill rate, specialty, location, hours, shift, current market demand, and the traveler’s eligibility for stipends.
When comparing opportunities, nurses should look beyond the advertised weekly number and understand exactly how each compensation package is structured.
How Far Do You Have to Live From a Hospital to Be Considered a Travel Nurse?
There is no universal IRS rule stating that a nurse automatically becomes a traveler after living a specific number of miles from a facility.
You may hear about a “50-mile rule,” but this is often misunderstood. Individual facilities or staffing agencies may establish distance requirements for their travel positions, while tax-free stipend eligibility involves separate tax-home and travel considerations.
That distinction is important when comparing local and travel opportunities.
Can I Take a Local Contract Near My Home?
Yes. Local contracts can allow nurses to work temporary assignments within commuting distance of home.
For nurses who don’t want to relocate, this can provide an alternative to traditional permanent employment while still offering the opportunity to work contract assignments.
Availability depends on the healthcare facilities and positions currently accepting local contract clinicians.
Is a Travel or Local Nursing Contract Better for Me?
That depends on what you value most.
Travel contracts may make sense for nurses who are comfortable temporarily relocating and want to explore opportunities in different locations. Local contracts may be better suited for nurses who want contract flexibility while remaining close to home.
Before accepting either type of assignment, compare the full compensation package, guaranteed hours, schedule, contract length, benefits, travel requirements, housing costs, and any cancellation or missed-hours provisions.
How Do I Find Travel and Local Nursing Contracts?
CK Medical Staffing offers both travel and local contract opportunities for healthcare professionals.
Rather than focusing only on the advertised weekly rate, we believe clinicians should understand how an opportunity is structured before accepting it. Our team can walk you through the position, compensation package, schedule, and contract details so you know what you’re considering before making a decision.
Browse current CK Medical Staffing opportunities or connect with our team to discuss travel and local contract positions that match what you’re looking for.
