Mental health therapist salaries can vary greatly depending on a therapist’s experience, location, and specialization.
What is the average income for a therapist?
Mental health therapist salaries can vary greatly depending on a therapist’s experience, location, and specialization. However, according to the Bureau of Labor Statistics, the median income for mental health therapists was $42,840 in 2016. And this number is expected to grow in the years to come as more and more people seek out mental health treatment. In this blog post, we will discuss therapist salaries in more detail and also look at how telehealth is changing the landscape of mental health care.
After the national COVID-19 restrictions, much of the population was forced to resort to telehealth therapy sessions. This has provided therapists, and clients, with a new opportunity.
How much does a telehealth therapist make per year?
Therapists working in telehealth make about $50,000 a year on average, which is slightly higher than the therapist salary for those who work in-person. This may be due to the fact that there are fewer therapists available for telehealth sessions, so demand is higher. And since many people are now turning to telehealth, this is providing an opportunity for mental health professionals looking to rebalance their work life schedule.
There are a number of benefits to working in telehealth. For therapists, it can be a way to continue practicing while also caring for young children or aging parents. It can also help therapists who live in rural areas where there are fewer mental health professionals available.
Therapist Income in Private Practice – Independent Contractor versus Employee
In private practice, there are several possible approaches; the most common approaches are being an employee or being an independent contractor.
Employees are typically paid a set salary, which may or may not include benefits such as health insurance, vacation days, and sick days. Employees also have to follow the rules and regulations of their employer.
Independent contractors are self-employed professionals who provide services to clients. They typically charge by the hour and can work for more than one provider. As an independent contractor, a therapist will have a split with the agency. In return, the agency will provide an Electronic Healthcare Records (EHR) Platform, clients, marketing, administrative support, and more. This is a good route if you want flexible hours but don’t want to build and run your own business. In these circumstances, your income is dictated by:
- Rate Split
- Session rate – this differs based on individual, couples, insurance, or private pay, so you’ll need to figure out the average based on your client mix
- Caseload – how many sessions you have per week
- Schedule – how many weeks you work per year
We created the calculator below to help you figure out your ideal situation.