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How much does a typical therapist make?

Curious about the average salary of people in your profession? It depends on a few factors.

June 14, 2024 • Updated on August 11, 2026

By the Headway Editorial Team

10 min read

By the Headway Editorial Team

Whether you’re considering becoming a therapist or are already in practice, you may be curious about the average salary of people in the profession. Knowing how much your peers are making can help you make a wide range of decisions around practice structure, specialties, education, how to accept insurance, working hours per week, and more. 

As with any profession, there’s no simple answer to the question, and a single dollar figure doesn’t always tell the whole story. 

Key insights

1

The average annual salary for a mental health counselor is $64,440.

2

Prescribing providers in the mental health field typically earn more — from $137,000 to $270,000 — because of the advanced degrees required and ability to prescribe medications.

3

License type is the strongest influencer of earnings, but your state, practice structure, experience level, and caseload also help determine your salary.

It’s a wide range that depends a lot on license type

As of August 2026, Bureau of Labor Statistics data suggests the average annual salary for a substance abuse, behavioral disorder, or mental health counselor is $64,440.

The biggest factor in earnings is license type. Prescribing providers in the mental health field typically earn more, because of the advanced degrees required and ability to prescribe medications:

  • Psychiatrists: Due in large part to the extensive educational requirements, psychiatrists make an average annual salary of $269,940.
  • Medical doctors (MD): The salary range of medical doctors varies by specialty, but on average, the wage is around $262,040.
  • Nurse practitioners (NP): Thanks to additional education beyond registered nurses, nurse practitioners make an average annual salary of $137,300.

There’s also variation in salary among non-prescribing providers:

  • Psychologists: Clinical and counseling psychologists earn an average annual salary of $112,750.
  • Licensed marriage and family therapists (LMFT): Marriage and family therapists have an average annual salary of $76,960.
  • Licensed clinical social worker (LCSW): Social workers have an average annual salary of $68,030

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How much do therapists make per hour?

A therapist who charges $150 per hour probably isn’t actually making $150 per hour.

Why? Time spent with paying clients is only one portion of a therapist’s working week. The average full-time private practice therapist schedules somewhere around 20 to 25 appointments per week. But that doesn’t mean they’re only working 20 to 25 hours per week. Some of their time will also go toward documentation, billing, marketing, client communication, and other important — but not directly compensated — tasks.

That means a therapist’s true hourly pay is less than what they charge for an hour of patient care. For example, in 2025, the average hourly wage for a psychologist was $54.21, according to the Bureau of Labor Statistics.

The way a practice is structured can also affect hourly pay. A clinician working within a health care system or group practice may earn a set hourly wage or salary, while a solo practitioner’s hourly rate is determined by their caseload and total number of hours worked.

4 other factors that impact a therapist’s salary

In addition to level of education and ability to prescribe, there are quite a few other factors at play when determining salary level for therapists. 

1. Experience

Like in most professions, experience plays a significant role in earnings. Therapists with many years in practice can often command higher compensation than those who are just starting out. 

2. Specialization

While many therapists treat clients with a wide range of approaches, therapists who specialize in certain types of therapy may earn more. These include things like trauma therapy, substance abuse counseling, and niche focus areas like art therapy or play therapy. 

3. Location

Pay ranges can vary significantly based on geography. In bigger cities where the cost of living is higher, therapists may receive higher compensation than those working in smaller, more affordable towns. 

4. Practice setting

The type of setting you work in can have a significant impact on your pay range. Community mental health workers are usually paid less than those in group practices. Therapists working in hospitals, healthcare facilities or government agencies often earn less than those who run private practices, but they enjoy additional compensation in the form of job stability, retirement benefits, and high-quality health insurance.

Finally, therapists who operate their own private practice have high earning potential, especially if they have a strong reputation locally and a high demand for their services. 

Curious about what it takes to start a private practice? A Headway practice consultant can help you navigate the requirements and get you credentialed with insurance plans quickly and easily.

Practice in-network with confidence

Simplify insurance and save time on your entire workflow — from compliance and billing to credentialing and admin.

Talk to a practice consultant

Tips to make more money as a therapist

Here’s the good news: It is possible to make more money as a therapist — and you may not even need to take on extra clients to do so. You can increase your take-home pay by:

  • Reducing overheard costs, such as rent and software subscriptions
  • Getting assistance with student loan debt
  • Raising your fees, if appropriate based on your experience and average rates in your area
  • Establishing — and marketing — a treatment niche to stand out from the competition
  • Using content creation to generate new leads and revenue streams, such as paid content
  • Consulting, supervising, or teaching paid workshops
  • Networking to find new business

How to find average salary by state

Curious about how much therapists make in your specific area? There are a few ways to find location-specific data.

The Bureau of Labor Statistics breaks down its data by region, state, and even some metropolitan areas. Private companies and job boards, like ZipRecruiter and Psychologyjobs.com, also track state-by-state earnings and provide estimates for different areas.

Keep in mind, though, that earnings can still vary widely by license type and practice setting, even within the same state.

Headway breaks down state-specific metrics:

Therapist salaries by license or practice type

Curious to learn about how much specific license types make? Check out Headway’s guides.

Therapist salary FAQs

Does accepting insurance affect how much a therapist earns?

Yes — but it’s complicated. A private-pay therapist may take home more per session, but therapists who accept insurance may book more sessions overall. That’s because more people can afford in-network therapy, and they can use insurance databases and platforms like Headway to find it.

Do therapists get paid more in private practice or at an agency?

There are benefits to agency and group practice work — including stability, administrative support, and built-in referrals — but private-practice therapists generally have higher earning potential overall.

Do therapists get paid per session or a set salary?

Therapists working in hospitals, schools, or other communal settings often earn a set salary, while those in private practice are generally paid per session.

How long does it take to reach a six-figure salary as a therapist?

There’s no single answer to this question. Your income as a therapist depends on your level of licensure, practice structure, caseload, experience, geographic area, and other factors.

How much can a therapist earn working part-time vs. full-time?

Logically, a full-time therapist generally makes more than a part-time one. But it’s possible to boost your earnings even on a part-time schedule, such as by shifting into a higher-paid specialty, establishing a private practice, or taking on side hustles like consulting.

How much do therapists make when they're just starting out?

As in most fields, newer clinicians typically make less than more experienced ones. For example, an LMFT in the 25th income percentile makes, on average, about $50,000 per year, while one in the 90th percentile makes close to $125,000. Experience isn’t the only factor that defines where someone falls on that spectrum, but it is an important one.

Does telehealth change how much location affects a therapist's pay?

It can. Therapists in rural areas often have a smaller pool of potential clients, which can limit earnings. Telehealth can help overcome that limitation. Headway even offers a free telehealth platform, allowing therapists to offer virtual services with no overhead.

No matter your salary, you can focus on financial planning

Another important factor to consider when earning as a therapist is how you’ll manage your money. Planning for financial success is an important part of being a business owner. Many Headway providers choose to partner with Heard to give practice owners access to monthly bookkeeping services that allow you to spend less time balancing the books and more time caring for your clients.

When you join the Headway network, you’ll also get guaranteed biweekly payments at enhanced reimbursement rates, billing support, clawback protection, and plenty of other features that support a profitable practice. Forget about late payments, delayed or denied claims, and disappointing reimbursement rates. With Headway, you’ll have everything you need to achieve financial freedom — and focus more energy on your clients.

This content is for general informational and educational purposes only and does not constitute clinical, legal, financial, or professional advice. All decisions should be made at the discretion of the individual or organization, in consultation with qualified clinical, legal, or other appropriate professionals.

© 2026 Therapymatch, Inc. dba Headway. All rights reserved. No part of this publication may be reproduced without permission.

Life as a provider