Tax Guide for Nurses (2025)
Registered nurses (RNs) earn a median salary of $89,010. Key tax considerations include shift differentials, continuing education deductions, and uniform expenses. The typical salary of $89,010 results in an estimated $71,170 take-home pay after federal income tax and FICA.
Quick Tax Snapshot
Gross Salary
$89,010
Median for nurses
Federal Income Tax
$11,031
Single filer, standard deduction
FICA Taxes
$6,809
Social Security + Medicare
Estimated Take-Home
$71,170
After federal tax + FICA
Key Tax Deductions for Nurses
Continuing education and certification renewals
Professional licenses and dues
Uniform and scrubs (if not reimbursed)
Malpractice insurance premiums
What to know at this income level
At $80,000 to $130,000 you are solidly in the 22% bracket, with some high-end earners touching the 24% bracket at $103,350 taxable income (about $119,000 gross). FICA remains a significant tax — at $100,000, you pay $7,650 in Social Security and Medicare combined. This is the income range where maximizing tax-advantaged accounts, Health Savings Accounts, and the Child Tax Credit have the most impact on your overall tax bill.
Max out tax-advantaged accounts
Between 401(k) ($23,500), IRA ($7,000), and HSA ($4,300 individual / $8,550 family), you can shelter up to $35,000+ from federal income tax. At the 22% bracket, that is over $7,700 in annual tax savings. Prioritize the 401(k) match first, then HSA, then IRA, then additional 401(k). Use calculator →
Health Savings Account (HSA)
If you have a high-deductible health plan, the HSA is the most tax-efficient account available — contributions are pre-tax, growth is tax-free, and withdrawals for medical expenses are tax-free. The 2025 limit is $4,300 (individual) or $8,550 (family). Unlike FSAs, HSA funds roll over indefinitely. Use calculator →
Child Tax Credit
Each qualifying child under 17 gives you a $2,200 credit for 2025 and 2026 (OBBBA raised it from $2,000, made permanent) that directly reduces your tax bill. With two children, that is $4,400 off your federal tax. The credit starts phasing out at $200,000 (single) or $400,000 (MFJ), so you receive the full amount at this income level. Use calculator →
Typical roles at this level: Experienced professionals, mid-career engineers and developers, accountants, registered nurses, project managers, federal employees at GS-11 to GS-13, and small business owners.
Frequently asked questions
What tax deductions can nurses claim?
Nurses can potentially deduct continuing education costs, professional license fees, union dues, and unreimbursed uniform expenses if self-employed. W-2 nurses lost most itemized job-expense deductions after the 2017 Tax Cuts and Jobs Act, but can still benefit from above-the-line deductions like HSA contributions and retirement account contributions.
How is overtime pay taxed for nurses?
Overtime pay is taxed at the same federal income tax rates as regular pay. It may feel like it is taxed more because the extra income pushes some dollars into a higher marginal bracket, but the effective tax rate on your total income remains lower than the marginal rate.
Should nurses contribute to a 401(k) or 403(b)?
Yes. Hospital-employed nurses typically have access to a 403(b) plan. Contributing reduces your taxable income dollar-for-dollar, and many employers offer matching contributions. For 2025, you can contribute up to $23,500 ($31,000 if age 50+).
What is the best order to fund retirement accounts?
The generally recommended order is: (1) 401(k) up to employer match, (2) HSA if eligible, (3) Roth IRA if income-eligible, (4) 401(k) up to the $23,500 limit, (5) taxable brokerage. The HSA ranks high because it offers triple tax benefits — pre-tax contribution, tax-free growth, and tax-free withdrawal for medical expenses.
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Federal Income Tax Calculator →Best states for nurses →
As a nurses, your state choice can save you thousands. Compare all 50 states at your $89,010 income.