Physical Therapist
Take-Home Pay Calculator

At the 2024 BLS median salary of $99,710, a single physical therapist filing with a $6,000 401(k) contribution can expect roughly $72,000–$80,000 per year in take-home pay depending on their state. In no-income-tax states like Texas, Florida, or Washington the net is closer to $80,200. In high-tax states like California or New York it drops toward $67,000–$70,000. Federal income tax under the 2026 OBBBA brackets, FICA (7.65%), and your 401(k) deduction are the three biggest deductions from gross pay.

Travel PTs often earn significantly more in take-home pay than the W-2 salary alone suggests. Legitimate travel PT contracts include tax-free housing stipends and meal/incidental per diems — these amounts are excluded from your taxable wages entirely as long as you maintain a true tax home. A travel PT earning $95,000 in taxable wages plus $20,000 in stipends effectively takes home as much as a staff PT earning $120,000+. You must keep documentation of your tax home and ensure stipends are proportionate to the area’s GSA rates to qualify for the exclusion.

Yes — if you are a W-2 employee earning overtime pay, the OBBBA exemption applies to you regardless of your profession. For 2026, the first $12,500 of overtime earnings is excluded from federal taxable income. Physical therapists working in SNFs, home health, hospitals, or travel roles who regularly work more than 40 hours per week can benefit meaningfully. If you earn $10,000 in overtime during the year, all of it is federally tax-free. The exemption phases out for very high earners (above ~$150,000 total income) and does not apply to 1099 independent contractors.

Most new DPT graduates carry $100,000–$150,000 in federal student loan debt. Under a SAVE or IBR income-driven repayment plan, monthly payments are typically 5–10% of discretionary income, which for a PT earning $99,710 works out to roughly $450–$850/month. This is an after-tax expense — it comes out of your take-home pay, not before taxes. If you work for a qualifying nonprofit hospital or government employer, Public Service Loan Forgiveness (PSLF) can eliminate your remaining balance after 10 years of payments, which dramatically changes your effective net hourly rate.

PTs typically earn enough ($87k–$115k) to be in the 22% or 24% federal bracket. At those rates, a traditional (pre-tax) 401(k) reduces your current-year tax bill meaningfully — every $1,000 contributed saves $220–$240 in federal tax plus your state rate. If you expect your income to be significantly higher in retirement, or if your state has no income tax and you plan to retire there, a Roth 401(k) can make sense. Many financial advisors recommend splitting contributions — some traditional for the current tax break, some Roth for long-term flexibility. The 2026 contribution limit is $23,500 ($31,000 if you’re 50+).

The best states for PT net pay are those with zero state income tax: Texas, Florida, Washington, Nevada, Wyoming, South Dakota, Tennessee, and Alaska. Among these, Texas, Florida, and Washington have the highest PT job markets and salaries, making them the strongest overall options. New Hampshire taxes only investment income, not W-2 wages, so it’s effectively tax-free for employed PTs. On the other end, California (top marginal rate 13.3%), Oregon (9.9%), Minnesota (9.85%), and New Jersey (10.75%) impose the highest effective state income taxes on PT-level salaries.

For W-2 employees, the short answer is generally no at the federal level — the Tax Cuts and Jobs Act suspended the itemized deduction for unreimbursed employee business expenses through 2025, and current law does not restore it for 2026. However, if your employer reimburses CEUs, licensure fees, or professional association dues through an accountable plan, that reimbursement is excluded from your taxable income entirely. If you are a 1099 contractor or have any self-employment income, those business expenses are fully deductible on Schedule C, which is a significant tax advantage for independent PT contractors.