Mental Health Counselor Salary and Career Outlook

Mental health is a growing area of focus in the healthcare field. People’s mental and emotional needs are widely recognized as essential to the diagnostic, therapeutic, and healing processes. As such, the need for mental health professionals continues to grow.

There are several points of entry into careers in counseling. Therefore, pursuing a career in the mental health field depends on where you live, where you work, and your educational background.

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Mental Health Counselor Careers

A variety of specializations fit under the umbrella of mental health counseling. Each has its own educational and licensing requirements (some of which vary by state). The salary potential and work environments also vary for mental health counselor careers.

Mental Health Counselors in Hospitals

Mental health counselors are quickly becoming an essential part of hospital patient care. Counselors work in both inpatient and outpatient capacities to help patients with psychological issues, rehabilitation from a procedure, or behavioral changes. Counselors are often called upon to support patients’ family members through struggles such as lifestyle changes or grief.

Most hospitals require counselors to hold a minimum of a bachelor’s degree, but a master’s degree is often preferred.

Mental Health Counselors in Residential and Substance Abuse Facilities

Sometimes referred to as addiction counselors, these professionals help clients cope with addiction as well as the underlying causes and triggers of addictive behavior. Substance abuse counselors work in either inpatient or outpatient settings and some focus on specific demographics (like veterans, minors, or elderly adults) and/or patients receiving compulsory interventions.

Another critical component of substance abuse counseling is providing care for patients’ families, friends, and coworkers. Cultivating a personal support network is crucial for recovery.

In some states, it is possible to serve as a substance abuse counselor with a high school diploma and a state-issued license. However, positions with the highest pay and professional authority require a bachelor’s degree and/or a master’s degree.

Mental Health Counselors for Individual and Family Services

When most people think of mental health professionals, they think of the archetypal psychiatrists – counselors with clipboards and pens jotting notes as patients share their concerns. According to the Bureau of Labor Statistics, psychiatry is certainly a lucrative career in and of itself, but it requires a doctoral degree and the residency and educational time investments that come with it.

In fact, it is possible to provide this style of mental health care to patients without an MD. Many states offer licenses for mental health care practice that can be obtained after completing a relevant bachelor’s and/or master’s degree program.

Mental health counselors specializing in individual and/or family services work in public or private settings and help patients work through issues including (but not limited to):

Relationship/marriage issues
Social conflicts
Anxieties
Abuse
School concerns
Career struggles
Behavioral disorders
Destructive decisions
Unhealthy dependencies
Grief

How Much do Mental Health Counselors Make?

According to the Bureau of Labor Statistics, the median annual salary for mental health counselors was $59,190. Using the same BLS data, figures from May 2024, the top 10% earners in mental health counseling careers had a median annual salary of over $98,210. The lowest 10% earned less than $39,090 a year.

However, mental health counselor salaries vary based on a number of factors:

Education – Higher-level degrees usually correlate with higher earning potential, and mental health counselor salaries are no exception. The highest-paying positions are typically reserved for those with post-secondary and/or graduate-level degrees in mental health counseling.
Specialization – Median pay varies by counselor’s field. For example, careers in school counseling and family counseling tend to have higher earning potential than careers in rehabilitation counseling. Psychiatrists and other associated careers requiring a master’s degree in psychology are among the highest paying in mental health care.
Experience – In mental health counseling, earnings often increase with experience as clinicians build advanced skills, develop specialty expertise, and qualify for higher-responsibility roles (for example, clinical supervision or leadership positions). The work can also be demanding. According to the Bureau of Labor Statistics, counselors may manage large caseloads and sometimes intervene in crisis situations, so employers frequently place a premium on proven clinical judgment and reliability over time. For counselors in private practice, income can rise as a practitioner establishes a reputation and a steady referral network, but it varies widely depending on factors such as session rates, insurance participation, client volume, and practice expenses. Private practice typically requires a state-issued license.
Industry – There is a notable discrepancy in median counselor salaries depending on where counselors are employed. Here’s a breakdown of median mental health counseling salaries as of May 2024, according to the Bureau of Labor Statistics:

Employer	Median Salary
Hospitals; state, local, and private	$61,930
Offices of other health practitioners	$59,570
Outpatient mental health and substance abuse centers	$58,200
Individual and family services	$57,080
Residential mental health and substance abuse facilities	$49,610

Job Outlook for Mental Health Counselors

According to the BLS, employment is expected to grow 17% from 2024 to 2034. The combination of increased public awareness surrounding mental health and a high rate of occupational burnout will keep demand for careers in counseling high.

Most master’s degree programs in mental health counseling include state licensure requirements for specializations such as substance abuse and behavioral disorder counseling. Therefore, entering the field with a comprehensive background in mental health education will likely increase employment opportunities and earning potential.

Information last updated January 2026