Is Therapy Tax Deductible?
Key takeaways:
Therapy is tax deductible if it’s treatment for a diagnosed mental health condition. But therapies like marital counseling typically don’t qualify.
You can deduct therapy costs if your total medical expenses exceed 7.5% of your adjusted gross income. You will need to itemize deductions to claim medical expenses on your tax return.
Prescription medications, psychiatric evaluations, and transportation to therapy appointments may also be tax deductible.
Table of contents
The cost of mental health therapy can be a barrier for many people. Whether you’re paying out of pocket or coinsurance, the expenses can add up over months of treatment.
If you’re looking for ways to manage therapy costs, you might be wondering if it’s tax deductible. The IRS allows deductions for certain medical expenses if they meet certain criteria. This includes mental health care.
Is going to therapy tax deductible?
Yes, therapy is tax deductible if it meets certain criteria. According to IRS Publication 502, therapy costs qualify as a medical expense when prescribed by a healthcare professional. This applies to therapy that treats a diagnosed condition, such as:
Eating disorders
Looking for ways to save on mental health care? Use a health savings account or flexible spending account to pay for therapy and medications with pretax dollars.
You can access mental health therapy without insurance. Here’s how to get free or low-cost mental health services and therapy.
Surgery, acupuncture treatments, and some home-improvement expenses are tax deductible. Here’s a list of other medical expenses you can deduct on your taxes.
Prescription medications related to therapy, such as antidepressants, are also tax deductible. These must be prescribed by a healthcare professional as part of your treatment plan.
But not all therapy qualifies. For example, the IRS doesn’t consider marital counseling a medical expense. Therapy must be part of treatment for a health condition.
What is a qualified medical expense?
The IRS defines qualified medical expenses as costs paid for diagnosing, treating, and preventing a health condition. These must be for medical care, not general wellness or health maintenance. And only costs paid out of pocket are eligible. Costs reimbursed by your insurance or employer don’t qualify as medical expenses.
Common qualified medical expenses include:
Office visit copays
Hospital stays and medically necessary procedures
Mental health treatment from licensed professionals
Prescription medications, such as Wegovy (semaglutide), Mounjaro (tirzepatide), and Prozac (fluoxetine)
Medical equipment, like wheelchairs, hearing aids, or blood glucose monitors
Vision care, including eye exams, prescription eyewear, and surgery such as LASIK
Dental treatments, such as dental fillings (excluding cosmetic procedures)
Physical therapy and rehabilitation services
Medical transportation costs
Not all health-related costs qualify as medical expenses. The following generally don’t meet IRS requirements:
Over-the-counter medications such as vitamins and supplements (unless prescribed to treat a condition)
Gym memberships and fitness programs
Most cosmetic procedures
General wellness products like toothpaste and toiletries
Vacations for relaxation or stress reduction
Dance or swimming lessons
When determining if an expense qualifies, ask yourself: Is this treating, diagnosing, or preventing a specific health condition? If not, it probably isn’t a deductible medical expense.
How much does therapy cost?
Therapy typically costs $65 to $250 per hour. In most parts of the country, you can expect to pay $100 to $200 per session. According to the American Psychological Association, most people begin seeing improvement after 15 to 20 sessions. Many people see meaningful results after 20 to 30 sessions.
What you pay for therapy depends on several factors, including:
Location, since therapy usually costs more in places with higher costs of living
Therapist’s credentials and experience
Session length and frequency
Type of therapy
In-person versus online sessions
Whether you’re using insurance
How much can you deduct for therapy?
The amount you can deduct for therapy depends on how much you paid and your income. You can include therapy costs for yourself, your spouse, and your dependents when calculating your medical expenses. To qualify, the person must have been your spouse or dependent when the therapy was provided or when you paid for it.
Medical expenses count as deductions if you itemize them on your tax return. The total must be more than 7.5% of your adjusted gross income (AGI). Itemizing deductions means listing each qualifying expense on your tax return. If you take the standard deduction (a fixed amount set by the IRS), you won’t be able to claim therapy expenses.
Let’s say you attend 25 therapy sessions for the year at $175 per session. Your therapy cost would be $4,375. If your AGI is $40,000, you would calculate 7.5% of that amount ($3,000) and subtract it from your total medical expenses. In this case, you could deduct $1,375 of your therapy costs ($4,375 minus $3,000).
If your medical expenses don’t exceed this threshold, you can’t include them in your itemized deductions. Not everyone benefits from itemizing deductions. Calculate both options — itemizing and standard deduction — to see which lowers your tax bill more. A tax professional can help you find the best option for your situation.
What other medical expenses are tax deductible?
In addition to therapy sessions, many medical expenses are also tax deductible. Tax-deductible mental health expenses may include:
Inpatient treatment at mental health facilities
Care received in a partial hospitalization program
Transportation costs to and from mental health appointments
Medical tests ordered by a mental health professional
Teletherapy or online therapy sessions
Medications are often an important part of mental health treatment. Tax-deductible prescription medications for mental health conditions include:
Celexa (citalopram) for depression
Latuda (lurasidone) for bipolar disorder
Effexor (venlafaxine) for depression and anxiety
Abilify (aripiprazole) for depression, bipolar disorder, and schizophrenia
Xanax (alprazolam) for anxiety and panic disorders
Zoloft (sertraline) for anxiety and depression
These expenses follow the same rules as therapy costs. You can deduct only amounts that exceed 7.5% of your AGI.
How do you deduct therapy on your tax return?
To deduct therapy on your tax return, follow these steps to itemize deductions:
1. Gather your receipts
Save all receipts and payment records from your therapy sessions throughout the year. These should show what you paid out of pocket after insurance coverage. Also, note the therapist’s credentials, dates of service, and condition being treated.
2. Calculate your total medical expenses
Add up all qualifying medical expenses for the year, including therapy sessions, prescription medications, and copays. Don’t include costs reimbursed by your insurance or employer.
3. Check if you meet the threshold
Calculate 7.5% of your adjusted gross income. Qualified medical expenses exceeding this amount are deductible.
4. Report on your tax return
Use Schedule A (Form 1040) to itemize your deductions. Enter your eligible medical expenses, and complete the form with other qualified deductions. Then compare your total itemized amount with the standard deduction. If your itemized deductions are higher, enter that amount on line 12 of Form 1040. This will replace the standard deduction on your tax return.
The bottom line
Therapy is a tax-deductible medical expense if it meets IRS guidelines. To claim therapy on your tax return, your total medical expenses must exceed 7.5% of your adjusted gross income, and you must itemize your deductions. Prescription medications for mental health treatment may also qualify as tax deductions. If you’re unsure whether an expense qualifies, keep your receipts and ask a tax professional.
Why trust our experts?
References
Clinical Practice Guideline for the Treatment of Posttraumatic Stress Disorder. (2017). How long will it take for treatment to work? American Psychological Association.
GoodTherapy. (n.d.). How much does therapy cost?
Internal Revenue Service. (2024). IRS provides tax inflation adjustments for tax year 2024.
Internal Revenue Service. (2024). Publication 502: Medical and dental expenses.
Internal Revenue Service. (2024). Topic no. 502, medical and dental expenses.
Internal Revenue Service. (2025). About Schedule A (Form 1040), itemized deductions.
Internal Revenue Service. (2025). Definition of adjusted gross income.
This article is solely for informational purposes. This article is not professional advice concerning insurance, financial, accounting, tax, or legal matters. All content herein is provided “as is” without any representations or warranties, express or implied. Always consult an appropriate professional when you have specific questions about any insurance, financial, or legal matter.
