So you’re a therapist—or on your way to becoming one—and you’re wondering:
“How much do therapists actually make?”
“Will I ever be able to pay off these student loans?”
“Should I stay in a salaried job, or go out on my own?”
If you’ve asked any of those questions lately, you’re in the right place.
This blog is going to walk you through the average salary of a therapist in 2025, what the difference is between working for someone else versus owning your own practice, and what really changes when you decide to go solo.
First: What’s the Average Salary for a Therapist in 2025?
Let’s get to the numbers first, then we’ll unpack what they mean.
Right now in 2025, most licensed therapists working as employees—that means you’re working for a hospital, school, clinic, or group practice—are earning somewhere between $62,000 and $85,000 per year.
If you’re brand new and just got your license, you might start on the lower end. If you’ve been at it for years and have a niche (like trauma, EMDR, or couples therapy), you might be above $90K, especially in bigger cities.
Now, these are averages. Some therapists make less. Some make much more. But this is the ballpark if you’re clocking in 35–40 client hours per week, working under someone else’s business.
What Does That Salary Actually Look Like?
Let’s pause here for a second. Because “$75,000 a year” sounds decent—until you factor in:
- Student loan payments
- Rent or mortgage
- Cost of living (hello, inflation)
- Taxes
- Health insurance (which might not be amazing if you’re at a smaller agency)
A lot of therapists we talk to are working full-time and still feeling stretched thin. And they’re not doing fluff work either—they’re holding space for trauma, helping couples rebuild trust, guiding people through anxiety, depression, grief…
So it’s fair to start asking: Is this sustainable? Is there a better way?
Let’s Talk Private Practice
Here’s where the door starts to open a little wider.
When you go out on your own—start your own practice—you’re no longer waiting on someone else to decide your salary. You get to set your rates. You choose how many clients you want to see. And you decide how you want your business to run.
Sounds exciting, right? And it is. But there are a few things you need to know.
How Much Do Therapists Make in Private Practice?
This is the part that can make therapists’ eyes light up a little. Because in private practice, your income is tied to what you charge, and how full your caseload is.
Let’s say:
- You charge $150 per session
- You see 20 clients a week (which is a reasonable, sustainable number for most solo therapists)
That’s $3,000 per week. Multiply that by 48 working weeks a year (give yourself a few weeks off!), and you’re at $144,000 gross income.
Sounds amazing, right? But remember, that’s before expenses and taxes.
Now let’s subtract:
- Rent for your office (or a virtual platform subscription)
- Malpractice insurance
- Marketing (even if it’s just a Squarespace site and Psychology Today)
- EHR (SimplePractice or something similar)
- Accounting or tax help
- Continuing education
- Self-employment taxes
After all that, many solo therapists still take home $90,000–$120,000 per year, depending on where they live, how full their caseload is, and how good they are at managing expenses.
In other words: yes, you can make more in private practice. But it takes some financial planning to make sure you’re not just earning more, but also keeping more.
Wait, So Why Doesn’t Everyone Just Start a Private Practice?
Because it’s not a quick flip of a switch.
When you work for someone else, you show up, do your work, get a paycheck, and go home. Taxes are taken out. Someone else handles billing, rent, client flow, insurance, and all that.
When you start your own practice, you’re no longer just the therapist. Now you’re also the business owner.
Which means:
- You’re responsible for getting your own clients
- You pay your own taxes (and yes, quarterly taxes are a thing—fun!)
- You need to track your income and expenses
- You make business decisions, like setting your rate, marketing, and picking software
It’s not rocket science, but it is different. And if you’ve never run a business before (most therapists haven’t), it’s going to take some learning and support.
But Here’s the Thing: It’s Doable
We’ve helped so many therapists go from “I have no idea what I’m doing” to “Hey, I actually understand my numbers now and I’m paying myself consistently.”
You don’t need a finance degree. You don’t need to be good at spreadsheets. You just need someone to walk you through the basics, and help you put the right systems in place so you’re not guessing every month.
(That’s why we built Traktion.)
Final Thoughts
If you’re in a salaried role, there’s nothing wrong with that. It can be stable and structured, and for many therapists, that’s exactly what they need right now.
But if you’re ready to earn more, work on your own terms, and build something that’s yours… private practice is worth considering.
Just know that the income bump comes with new responsibilities. And that’s not a bad thing, it’s just something to be prepared for.
If you’re not sure where to start, or you’ve got questions about setting up your rates, your taxes, or your (P)LLC—we’re here.
We’re Traktion.
Helping therapists build sustainable businesses is what we do.