How much do therapists in private practice make?

Therapists in private practice earned an average of $127,631 in revenue in 2025, up 2.7% from 2024, and took home an average of $86,961 in net income after $40,668 in business expenses, according to Heard's analysis of anonymized financial data from therapy practices in all 50 states.

How much do sole proprietor therapists make?

Sole proprietor therapists earned a median of $91,178 in revenue and $66,084 in net income in 2025, roughly $5,500 per month in take-home pay. Average revenue for sole proprietors was $98,095 and average net income was $70,696. Sole proprietors kept a 72.1% net margin.

How much do S corp therapy practices make?

S corp therapy practices averaged $179,003 in revenue and $115,250 in net income in 2025, with median net income of $94,307. Expenses grew 11.2% year over year, and net margins compressed from 66.5% to 64.4%. The higher revenue largely reflects group practices with payroll and overhead that solo practitioners do not carry.

When does an S corp election make sense for a therapist?

Heard's general rule of thumb is that an S corp election starts to make financial sense when a therapist's net income consistently exceeds $100,000 per year. In 2025, sole proprietors kept a 72.1% net margin compared with 64.4% for S corp practices before accounting for the self-employment tax savings an S corp election can provide, so the decision depends on income level, growth plans, and tolerance for added administrative cost.

What are the biggest expenses for a therapy practice?

Staffing is the largest expense for group practices and S corps, which averaged $63,754 in total expenses in 2025. After staffing, the largest therapy practice expenses were rent and lease ($10,396 per year, $866 per month), software and technology ($3,636 per year), office expenses ($2,813 per year), and advertising and marketing ($2,165 per year). Smaller recurring costs included professional fees ($1,590), meals and networking ($1,269), continuing education ($1,227), credit card processing fees ($779), professional liability insurance ($642), and internet ($365).

How Much Did Therapists Make in 2025?

Key Takeaways

Therapists in private practice earned an average of $127,631 in revenue in 2025, up 2.7% from 2024, according to Heard's analysis of anonymized financial data from therapy practices in all 50 states.
The average therapist took home $86,961 in net income in 2025, after $40,668 in business expenses.
Sole proprietor therapists earned a median of $91,178 in revenue and $66,084 in net income in 2025, roughly $5,500 per month in take-home pay.
S corp therapy practices averaged $179,003 in revenue and $115,250 in net income in 2025, with expenses up 11.2% year over year.
Sole proprietors kept a 72.1% net margin in 2025, compared with 64.4% for S corp practices, before accounting for the self-employment tax savings an S corp election can provide.
After staffing, the largest therapy practice expenses in 2025 were rent and lease ($10,396 per year), software and technology ($3,636), office expenses ($2,813), and advertising and marketing ($2,165).
Median revenue declined for both sole proprietors and S corps in 2025 even as averages rose: top earners pulled the averages up while the typical practice slipped slightly.

Source: Heard, How Much Did Therapists Make in 2025? Based on full-year 2024 and 2025 financial data from Heard customers across all 50 states. Updated February 2026.

"How much should I be earning?" is one of the most common questions therapists ask — and one of the hardest to answer. Salary surveys and job postings don't capture the reality of running your own practice.

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That's why we built this report. Using anonymized financial data from Heard customers across all 50 states, we analyzed full-year 2024 and 2025 results to give you real benchmarks for revenue, expenses, and take-home income — broken down by business structure.

Whether you're just starting out, evaluating an S Corp election, or wondering where you stand compared to peers, this data can help you make smarter financial decisions for your practice.

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Essential resources:

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The Big Picture: Therapy Practice Finances in 2025

Across all practices in our dataset, average revenue grew 2.7% year-over-year to $127,631 — a modest but positive trajectory in a year marked by rising operational costs and evolving insurance reimbursement landscapes.

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The real story, however, is in the split between sole proprietors and S Corps. These two groups operate at fundamentally different scales, and understanding the differences is crucial whether you're planning your first year or your tenth.

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Key takeaway: S Corp practices generate 83% more revenue on average — but their expenses grow even faster, resulting in a lower net margin (64.4% vs. 72.1%). The higher revenue largely reflects larger or group practices with payroll, staffing, and overhead costs that solo practitioners don't carry.

Sole Proprietors: Year-over-Year

2024

2025

Mean Revenue +0.63%

$97,478

$98,095

Median Revenue -3.26%

$94,246

$91,178

Mean Net Income +0.74%

$70,177

$70,696

Median Net Income -2.17%

$67,548

$66,084

Mean Expenses +0.36%

$27,298

$27,396

S Corps: Year-over-Year

2024

2025

Mean Revenue +4.71%

$170,950

$179,003

Median Revenue -0.16%

$143,872

$143,646

Mean Net Income +1.45%

$113,597

$115,250

Median Net Income -2.55%

$96,776

$94,307

Mean Expenses +11.16%

$57,353

$63,754

Solo Practice Income: Stability With a Squeeze

For the sole proprietors and 1099s in our dataset, 2025 told a story of stability on the surface — but a subtle decline underneath.

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Average revenue ticked up just 0.63% to $98,095, while the median declined 3.3% to $91,178. That divergence between mean and median tells us that high earners at the top pulled the average up, while the typical practitioner saw their revenue slip slightly.

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Net income followed a similar pattern: the average rose 0.7% to $70,696, but the median fell 2.2% to $66,084. Expenses stayed essentially flat (+0.4%), which is encouraging — most solo practitioners are keeping costs disciplined even as the cost of doing business rises.

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What this means for you: If you're a sole proprietor earning around $91,000 in revenue, you're right at the median — solidly in the middle of the pack. That translates to roughly $5,500 per month in take-home income after expenses. If you're looking to grow beyond this, consider whether increasing session volume, raising rates, or diversifying revenue streams (like group therapy or workshops) makes sense for your practice.

S Corp Practices: Revenue Up, But Expenses Growing Faster

S Corp practices saw stronger top-line growth in 2025, with average revenue climbing 4.7% to $179,003. But the headline number masks a growing pressure point: expenses surged 11.2%, nearly ten times the rate of expense growth among sole proprietors.

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As a result, average net income grew just 1.5% to $115,250, and the median net income actually declined 2.6% to $94,307. Net margins compressed from 66.5% to 64.4% — a meaningful shift for practices managing payroll and overhead.

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S Corp Metric	2024	2025	Change
Mean Revenue	$170,950	$179,003	+4.71%
Median Revenue	$143,872	$143,646	-0.16%
Mean Net Income	$113,597	$115,250	+1.45%
Median Net Income	$96,776	$94,307	-2.55%
Mean Expenses	$57,353	$63,754	+11.16%
Net Margin	66.5%	64.4%	-2.1 pts

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The S Corp tradeoff: S Corp election can provide significant tax savings through the salary/distribution split — but 2025's data shows that the operational complexity and costs of running an S Corp are rising. If you're considering an S Corp election, the general rule of thumb is that it starts making financial sense when your net income consistently exceeds $100,000 per year. Learn more about whether S Corp is right for you.‍

Where Your Money Goes: The Biggest Practice Expenses

Although business expenses are tax deductible, they still eat into your take-home income. Understanding how other therapists spend their money can help you budget smarter and identify areas where you might be overspending — or under-investing.

Here are the top expense categories impacting therapy practices, including the average amount Heard customers pay annually and monthly:

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No. 1 Expense

Staffing Costs

Varies widely

For group practices and S Corps

Salaries, wages, contractor payments, payroll taxes, and employee benefits. This is the largest expense category for group practices and S Corps — but it also represents your growth investment. S Corp practices average $63,754 in total expenses, with staffing making up the largest share.

No. 2 Expense

Rent and Lease

$10,396

$866 per month

Home offices, shared spaces, and commercial leases. Whether you use a home office or lease commercial space, this is the largest non-staffing expense for many practices.

No. 3 Expense

Software and Technology

$3,636

$303 per month

EHR systems, billing software, and telehealth platforms. Non-negotiable in 2025 — good tech drives efficiency and better client outcomes.

No. 4 Expense

Office Expenses

$2,813

$234 per month

Supplies, furniture, and equipment. This includes operating expenses (supplies) and depreciable items like furniture and computers.

No. 5 Expense

Advertising and Marketing

$2,165

$180 per month

Web hosting, directory listings, and online ads. Your expense will vary based on your marketing strategy and how established your referral network is.

Category	Annual Avg.	Monthly Avg.
Professional fees (legal, consultation)	$1,590	$133
Meals and entertainment (networking)	$1,269	$106
Continuing education	$1,227	$102
Credit card processing fees	$779	$65
Professional liability insurance	$642	$54
Internet	$365	$30

What this means for you: If your expenses in any of these categories are significantly higher or lower than these benchmarks, it's worth examining why. Are you overspending on office space? Under-investing in marketing? These figures can help you identify opportunities to optimize your spending. If tracking your financials or deductibles feels overwhelming, Heard is here to help.

Key Takeaways for Your Practice

Revenue growth is slowing — focus on efficiency

With median revenue declining slightly for both sole props and S Corps, 2025 wasn't a year of dramatic growth. The therapists who came out ahead focused on reducing no-shows, optimizing their schedules, and ensuring their fee structures keep pace with inflation.

Expenses are the real threat for S Corps

An 11.16% jump in expenses for S Corp practices is eating into margins. If you're running or building a group practice, careful expense management is more important than ever.

Solo practices maintain stronger margins

At 72.1%, sole proprietors keep a larger share of every dollar earned compared to S Corps (64.4%). Growth is great — but it should be intentional. Scaling your practice without a plan can erode the very income you're trying to grow.

$100K+ net income? Time to evaluate S Corp

If you're a sole proprietor consistently earning above $100,000 in net income, the tax savings from an S Corp election could be significant. But it's not automatic — the decision depends on your specific financial situation, growth plans, and tolerance for administrative complexity.

How to cite this report

Heard. (2026). How much did therapists make in 2025? Analysis of full-year 2024 and 2025 financial data from therapy practices in all 50 states. Updated February 2026. https://www.joinheard.com/how-much-did-therapists-make-in-2025

More first-party data from Heard

How much did therapists spend on marketing in 2025? What 500 therapists spent across directories, ads, SEO agencies, and websites, and which channels correlated with revenue growth.

The Heard 2025 Financial State of Private Practice Report. The full picture of therapy practice finances, from revenue and expenses to entity structure.

S Corp Calculator. Estimate what an S corp election could save your practice at your current net income.

Take Control of Your Practice Finances

Whether you're earning $50K or $500K, understanding your numbers is the first step to growing your income. Heard provides bookkeeping, tax preparation, and financial tools built specifically for therapists — so you can spend less time on spreadsheets and more time with clients. Learn how Heard can help your practice →

How Much Did Therapists Make in 2025?

Key Takeaways

The Big Picture: Therapy Practice Finances in 2025

Solo Practice Income: Stability With a Squeeze

S Corp Practices: Revenue Up, But Expenses Growing Faster

Where Your Money Goes: The Biggest Practice Expenses

Key Takeaways for Your Practice

Table of Contents

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Key Takeaways

The Big Picture: Therapy Practice Finances in 2025

Solo Practice Income: Stability With a Squeeze

S Corp Practices: Revenue Up, But Expenses Growing Faster

Where Your Money Goes: The Biggest Practice Expenses

Key Takeaways for Your Practice

Table of Contents

Heard handles your taxes, year-round

Take Control of Your Practice Finances

Tax Deadlines

Which plan is right for me?

Heard is the only financial management software built for therapists and wellness practitioners that enables you to manage your bookkeeping, taxes, and payroll-all in one place.