A mental health therapist salary is on the average of $49,710 to $69,000 per year in the United States. The U.S. Bureau of Labor Statistics (BLS) reported that in 2023, mental health counselors had a median annual wage of $53,710, while PsychologyJobs.com lists a broader range up to $69,000, depending on several factors like location and experience.
Mental health therapists working full-time usually receive hourly wages between $23 and $35 per hour. Private practices and hospitals tend to offer higher wages than schools or community centers. Many therapists also earn more by working evenings or weekends or by offering telehealth services.
The pay can vary based on whether the therapist holds a license. Licensed therapists (like LPCs or LMHCs) often earn more than unlicensed interns or associate-level counselors.
Key Takeaways
- Average Salary: Therapists earn $49,710 to $69,000 yearly; licensed professionals earn more.
- Experience Boosts Pay: Entry-level starts at $40K; veterans can earn $70K+.
- Top States: New Jersey and California pay the highest—$80K+ annually.
- Best Industries: Government and hospitals offer the strongest pay and benefits.
- Education Matters: Master’s and licensure raise income by $10K–$20K.
- Job Outlook: 18% job growth expected by 2032—much faster than average.
- Compared Roles: Therapists earn more than social workers, less than psychologists.
- Top Jobs: Clinical directors and private practice owners can make $100K+.
- Main Influencers: Pay depends on license, location, setting, and specialization.
How Does Experience Impact a Mental Health Therapist’s Salary?
Experience raises a mental health therapist’s salary steadily over time. Entry-level therapists with less than one year of experience usually earn around $40,000 to $45,000 per year. These positions are often in community clinics or supervised roles for recent graduates.
Therapists with 5 to 9 years of experience can earn between $55,000 and $65,000. At this stage, many have earned full licences and may take on more responsibilities, such as supervising interns or running group sessions.
Veteran therapists with 10 to 20+ years of experience often earn over $70,000 annually, especially in private practice, hospitals, or leadership roles like clinical supervisors or program directors.
Years of practice not only raise the salary but also open up better job opportunities and negotiating power for flexible schedules or higher hourly rates.
Which States Pay Mental Health Therapists the Most?
Mental health therapists earn the highest salaries in states with high demand and higher living costs. According to data, the top-paying states include:
- New Jersey – Average salary: $91,070
- California – Average salary: $81,960
- Connecticut – Average salary: $79,520
- Oregon – Average salary: $78,580
- Alaska – Average salary: $77,990
These states tend to invest more in mental health services or have large urban areas with higher patient loads. Therapists working in New York City, Los Angeles, or San Francisco often earn above the national average due to demand and private practice rates.
In rural or low-income states, salaries may fall below $45,000, but some offer student loan forgiveness or hiring incentives.
What Industries Employ the Highest-Paid Mental Health Therapists?
Mental health therapists earn different salaries depending on the industry they work in. The highest-paying settings include:
- Government agencies – Average salary: $60,450 to $80,000
Therapists in state or federal programs often get better pay and full benefits. - Hospitals (state, local, private) – Average salary: $59,100
Hospitals offer steady caseloads, team collaboration, and often union protection. - Outpatient care centers – Average salary: $58,790
These centers treat clients without overnight stays and often pay more for licensed professionals. - Private practice – Income varies widely: $60,000 to $100,000+
Therapists can set their own rates, often $100–$150 per session, but must cover their own expenses. - Elementary and secondary schools – Average salary: $54,300
School-based therapists work on academic calendars with structured hours but may earn less than medical settings.
Industries with crisis work or specialized care usually pay more due to higher risk or demand.
How Do Educational Levels and Licensure Affect Therapist Pay?
A therapist’s education and license have a major impact on how much they earn. Most mental health therapists need at least a master’s degree in counseling, psychology, or social work to qualify for higher-paying roles. Therapists with only a bachelor’s degree often work in support roles and earn less, usually under $40,000 per year.
Holding a state license, such as Licensed Professional Counselor (LPC), Licensed Mental Health Counselor (LMHC), or Licensed Clinical Social Worker (LCSW), increases salary potential. Licensed therapists typically earn $10,000 to $20,000 more per year than unlicensed or associate-level counselors. That’s because licensure allows them to bill insurance companies and work independently.
Some therapists also pursue a PhD or PsyD, especially if they want to become supervisors, researchers, or work in academic settings. These advanced degrees can push earnings above $90,000, particularly in government, private hospitals, or specialized care.
Continuing education, certifications in trauma or addiction, and bilingual skills can also raise a therapist’s market value. In short, the more training and credentials a therapist holds, the higher their earning potential.
What is the Salary Outlook for Mental Health Counselors?
The salary outlook for mental health counselors is strong and growing. According to the U.S. Bureau of Labor Statistics, the job market for substance abuse, behavioral disorder, and mental health counselors is expected to grow by 18% from 2022 to 2032. This rate is much faster than the average for all occupations.
This growth is driven by rising awareness of mental health, expanded insurance coverage, and increased demand for therapy in schools, workplaces, and online platforms. As demand rises, salaries are also increasing—especially in urban centers and areas with limited access to care.
Entry-level positions are becoming more competitive, and licensed professionals are in high demand. Teletherapy is also creating new income opportunities, with many therapists earning extra income through online counseling platforms or running hybrid practices.
As more people seek mental health support, qualified therapists are expected to earn more and have more job choices in various industries.
How Do Mental Health Therapist Salaries Compare to Related Professions?
Mental health therapists earn less on average than some related professions, but more than others. For example, clinical psychologists with doctoral degrees often earn $85,000 to $100,000 or more per year, especially in private practice or hospital settings. They diagnose mental disorders and provide advanced treatment, which requires more education and licensing.
Social workers, especially those without clinical licenses, earn less—around $50,000 to $60,000 annually. Licensed Clinical Social Workers (LCSWs), however, can earn wages closer to mental health therapists, especially in medical or private settings.
Substance abuse counselors generally earn slightly less, averaging $49,710 per year, but their pay increases if they work in hospitals or residential treatment centers.
Marriage and family therapists (MFTs) earn similar salaries to mental health counselors, ranging from $50,000 to $70,000, depending on licensure and location.
Compared to these roles, mental health therapists fall in the middle. Their income rises significantly with licensure, specialization, and years of experience.
What Are the Highest Paying Jobs in Mental Health Counseling?
Some roles in mental health counseling offer much higher salaries than the average therapist position. One of the top-paying roles is Clinical Director, with average salaries ranging from $80,000 to over $100,000 per year. These professionals manage programs, supervise staff, and oversee treatment plans in large organizations.
Private practice owners can also earn six figures, especially if they see a full caseload of clients and charge $100 to $150 per session. Running a practice involves extra responsibilities like marketing, billing, and business management, but it gives therapists full control over income.
Supervising therapists, who mentor newer counselors and sign off on licensure hours, can earn $70,000 to $90,000, depending on setting and region.
Therapists with specializations in trauma, EMDR, eating disorders, or bilingual services often charge higher rates and attract more clients, boosting income potential.
Other high-paying jobs include:
- Teletherapy consultants for large platforms
- Mental health program coordinators in hospitals
- Court-ordered or forensic therapists
These roles require advanced credentials but come with higher pay and more career flexibility.
What Factors Influence Mental Health Therapist Pay the Most?
Several key factors directly influence how much a mental health therapist earns. The most important factor is licensure. Therapists with full state licenses (like LPC, LMHC, or LCSW) earn significantly more than those practicing under supervision or in training.
Location also plays a major role. Therapists in states like California, New Jersey, and Oregon earn more due to higher demand, urban density, and cost of living. In contrast, rural or low-income areas may offer lower wages but sometimes include incentives like loan forgiveness.
Work setting matters too. Therapists in private practice, hospitals, or government agencies typically make more than those in schools or nonprofits. Roles involving specialized care, such as trauma, addiction, or crisis intervention, also tend to come with higher pay.
Experience level steadily increases earnings over time. Entry-level salaries are lower, but mid-career and senior therapists see boosts of $10,000–$30,000 over time.
Other factors that influence pay include:
- Education level (master’s vs. doctorate)
- Specialized certifications (e.g., EMDR, DBT)
- Language skills (bilingual therapists are in higher demand)
- Caseload and hours worked (more clients = more income)
Together, these factors determine a therapist’s earning power and long-term financial growth.