If you are looking for the highest-paying states for travel therapy jobs in 2026, you might be tempted to just search for the highest gross weekly pay on a travel therapy job board. But this would be a mistake.
In the world of travel healthcare high gross pay can be incredibly deceptive. Between state income taxes, the complexities of “tax home” rules, and rising housing costs, the state with the biggest paycheck on paper often isn’t the state where you actually keep the most money.
As we move through 2026, you’ll come out ahead financially by being strategic about geo-arbitrage: the art of working in high-demand “hotspots” while keeping your expenses and tax burden low.
The “Tax Home” Paradox: Why 0% Doesn’t Always Mean 0%
Before diving into the rankings, we have to address the most important rule in travel therapy finance: The Resident vs. Non-Resident Tax Credit.
As we’ve discussed in our comprehensive guide to state tax rates, travel therapists generally pay the higher of two tax rates: their home state (tax home) or the state where they are working.
- The 0% Tax Dream: If your tax home is in Florida (0% tax) and you work in Washington (0% tax), you pay $0 in state income tax.
- The Reality Check: If your tax home is in Virginia (approx. 5.75% tax) and you work in Washington (0% tax), you still owe Virginia that 5.75%. In this case, you shouldn’t just look for 0% states; you need high gross pay to overcome your home state’s tax.
The 2026 Travel Therapy Job “Hotspots”
We asked top recruiters from major travel therapy agencies where they are seeing the highest travel therapy job rates currently. Here are some of the top states with highest travel therapy pay for Q1 of 2026:
- California
- Vermont
- Massachusetts
- New Hampshire
- Maine
- Alaska
- Illinois
- Montana
- The Dakotas
- Missouri
The “Real Wealth” Rankings: Best States for Net Pay
Washington State
- Why it wins: Consistently high West Coast rates + No State Income Tax.
- The Strategy: Avoid Seattle’s rent. Target smaller cities or more rural areas for better cost of living to keep more money in your pocket.
- The Math: If your tax home is in a low or no tax state, you’ll come out significantly ahead.
New Hampshire
- The Pay: New England rates are currently leading the nation and we’re seeing high travel therapist rates in NH.
- The Tax: 0% state income tax on earned wages. Unlike neighboring VT or MA, NH lets you keep the entirety of your taxable hourly rate if you also live in a no income tax state, and still benefits you if you live in a lower tax state.
- Cost of Living Strategy: You can find moderate to lower cost of living areas in NH compared with other northeast states.
The Midwest (IL, MO, OK)
- Why it wins: These states are currently “overpaying” travelers to attract much needed therapists.
- Cost of Living: You can find moderate to higher pay packages here with lower cost for rent.
Surprise Runner-Up: California
Don’t let the “high tax” reputation scare you. This may actually come as a surprise to many. Because travel taxable hourly rates are low ($20–$27/hr), most of your CA income falls into the 1% to 4% tax brackets (this is your “effective” tax rate). Recent jobs in California offer some of the highest gross numbers in the country. Your “effective” tax here is often lower than in the Midwest! The caveat is that cost of living can be high in many parts of California, so be sure to research the specific area and compare that with the weekly pay before signing a contract.
Highest Paying Settings
Setting matters as much as location. If you want the highest pay, look for home health or rural hospitals. Here’s the current overall rank for highest paying settings:
- Home Health
- Hospital inpatient/acute
- Outpatient
- Skilled Nursing
- Schools
Summary: How to Pick Your 2026 Travel Therapy Contracts
To build the most wealth this year as a travel therapist, follow these guidelines:
- Look for high weekly pay packages
- Consider the state taxes (but don’t put too much stock in this if your tax home state is high tax)
- Research the cost of living and rent prices to know how much ahead you’ll come out compared to the pay rate
- Consider working in home health to earn the highest pay
- Avoid overly saturated locations like Florida or Hawaii where pay is moderate to low and cost of living is high
For more info about the travel therapy job market, check out our January 2026 Job Market Update
Looking for the best paying travel therapy jobs? Check out our Hot Travel Therapy Job List here, or get our recommendations for travel therapy recruiters here to assist you with your job search!
Check out the additional resources below, and feel free to reach out to us if you have any questions or need advice on starting your journey as a travel therapist!
Additional Resources:
- How to Become a Travel Therapist
- Travel Physical Therapy (Travel PT)- The Ultimate Guide
- Top 5 Mistakes to Avoid When Choosing Your First Travel Therapy Contract
Written by Whitney Casazza, PT, DPT – Whitney has been a traveling physical therapist since 2015. She has become an expert in the field of travel healthcare through her experience, research, and networking over a decade. She and her husband and fellow Travel PT, Jared, are the Travel Therapy Mentors.
