Private Practice Therapist Salary and Requirements in California

People who want to change bad habits, improve relationships, and handle past trauma can benefit from therapy. Despite this, many Americans who need therapy or counseling go without help because of a lack of available professionals.

More than half of adults with a mental illness did not get treatment in 2024, according to Mental Health America (MHA). In 2022, the American Psychological Association (APA) surveyed therapists. Sixty percent of them said they could not accept new patients.

Those who are interested in combating this mental health crisis can consider becoming a private practice therapist. Future therapists should understand the career's requirements. This includes the need for an advanced degree. An advanced degree helps meet licensure requirements, job duties, and salary potential.

What Does a Private Practice Therapist Do?

Private practice therapists, also known as private practice psychologists or licensed counselors, help patients with personal problems. They focus on issues related to mental health and relationships through diagnosis and treatment. They commonly help patients experiencing anxiety, depression, post-traumatic stress disorder (PTSD), behavioral issues, relationship problems, and grief.

Private practice therapists typically offer one-on-one counseling sessions, although some also offer group therapy. Treatments may vary depending on a therapist’s specialty and the patient’s needs and may include the following:

Cognitive behavioral therapy (CBT)

Interpersonal therapy

Dialectical behavior therapy (DBT)

Psychodynamic therapy

Supportive therapy

Psychoanalysis

Private practice therapists must document their patients’ progress and maintain confidentiality. They may work with healthcare professionals to offer better care. For example, they can consult a psychiatrist who prescribes medications for their clients' mental health. As business owners, private practice therapists are also responsible for following legal guidelines and managing their own finances.

A therapist takes notes while talking with a client.

Requirements to Become a Private Practice Therapist

Becoming a private practice therapist can be a challenging process. It requires earning an advanced degree and holding specific licensure. Requirements vary by state, and California has a distinct set of prerequisites.

California Therapist Education Requirements

To work as a private practice therapist in California, you need to meet specific licensure requirements. You can earn an advanced degree in several fields. These include Psychology, Clinical Psychology, Counseling, Social Work, and Clinical Mental Health Counseling.

A Master of Science (MS) in Clinical Psychology includes courses that focus on clinical practice. These courses cover ethics and law, family systems, relational psychotherapy, and human sexuality.

Some programs prepare students for licensing exams. They also teach how to diagnose and treat patients well. Additionally, some programs offer business management courses. This is important for running a successful private practice.

California Therapist License Requirements

To work as a private practice therapist in California, professionals must first earn a relevant license from the California Board of Behavioral Sciences (BBS). Available licenses include the following:

Licensed Marriage and Family Therapist (LMFT)

Licensed Clinical Social Worker (LCSW)

Licensed Professional Clinical Counselor (LPCC)

Licensed Educational Psychologist (LEP)

Each license has different eligibility requirements, including fulfilling educational prerequisites, completing a specific number of hours of supervised work experience, and passing a required licensing exam.

For example, prospective LMFTs must first earn a relevant advanced degree, such as a master’s degree in Clinical Psychology, and complete coursework in suicide risk assessment, intervention, and telehealth-based mental health services to become Associate Marriage and Family Therapists (AMFTs).

AMFTs must pass the LMFT California Law and Ethics exam. They also need to complete at least 3,000 clinical hours. These hours must be supervised by a licensed therapist for over 104 weeks.

Therapists then take the LMFT California Clinical exam, which covers clinical evaluation, diagnosis, crisis management, and treatment planning and implementation. After completing these steps, therapists are eligible to submit applications for licensure. Licensure must be renewed every two years and may require continuing education.

In addition, therapists are required to register their practices as businesses in California; this may require a local business license and filing fees.

A mature therapist is seated taking notes as a father and son are seated on the couch venting.

Private Practice Therapist Salary and Job Outlook

A private practice therapist’s salary can vary considerably based on location. Payscale reports that the median annual salary for mental health therapists in Los Angeles, California, was about $71,000 in early 2025, but approximately $75,000 in San Diego, California. Both salaries are significantly higher than the 2023 mean annual salary for all professions of $64,570 reported by the U.S. Bureau of Labor Statistics (BLS).

A therapist’s salary depends on their per-session or per-hour rates. The rate can vary based on a therapist’s area of expertise and length of experience. Additionally, therapists who specialize in certain areas, such as trauma, addiction, or family therapy, may command higher fees due to the demand for their expertise. Many therapists also offer sliding scale fees, which can make their services more accessible to clients with varying financial situations.

The job outlook for private practice therapists remains positive in the long term. According to the BLS, the employment of mental health counselors is projected to grow by 22% from 2020 to 2030, much faster than the average for all occupations. This growth is driven by an increasing awareness of mental health issues and a greater acceptance of seeking therapy.

Moreover, the rise of teletherapy has expanded opportunities for therapists, allowing them to reach clients beyond their immediate geographic area. This flexibility can lead to increased client volume and, consequently, higher earnings.

According to the BLS, positions for substance abuse, behavioral disorder, and mental health counselors, including private practice therapists, are projected to increase by 19% between 2023 and 2033. This is significantly higher than the 4% growth projected for all careers. The BLS suggests that this growth is due to the increasing number of people who need assistance in managing and treating their mental health.

Help Solve the Mental Health Crisis as a Private Practice Therapist

After researching the private practice therapist salary and job duties, the next step is to pursue the education you’ll need to become a licensed therapist in California. The Master of Science in Clinical Psychology degree program at Notre Dame de Namur University (NDNU) is an ideal way to gain the skills and expertise to make a real difference in clients’ well-being.

The program offers coursework on topics such as human sexuality, professional ethics and law, and CBT. With the option to focus on licensing as an LMFT or LPCC or choose tracks in Business, Organizational, and Consulting Psychology or Consulting and Applied Psychology, we offer degrees that fit your career plans.

Our flexible program allows students to take courses full-time or part-time and offers them both in person and 100% online. Students can earn a degree in as little as one and a half to two years.

Find out how you can make a real difference in people’s lives with NDNU by filling out the form below.

Recommended Readings

Is Psychology a Good Major?

Master of Arts vs. Master of Science: What’s the Difference?

Where Do Clinical Psychologists, Therapists, & Counselors Work

Sources:

American Psychiatric Association, What Is Psychotherapy?

American Psychological Association, “Group Therapy Is as Effective as Individual Therapy, and More

Efficient. Here’s How to Do It Successfully”

American Psychological Association, Psychologists Struggle to Meet Demand Amid Mental Health Crisis

Blueprint, “Starting a Private Therapy Practice in California”

Board of Behavioral Sciences, Application for Associate Marriage and Family Therapist (AMFT) Registration