The Best (& Worst) States for Psychologists in 2024

As a psychologist, you have one of the world’s toughest jobs in terms of emotional labor. On the other hand, workdays can be incredibly fulfilling. And when it comes to monetary payment for services, a career in psychology can also be particularly lucrative. Deciding on a home for your practice is not just about the salary alone but also the affordability and standard of living associated with an area, the ease of finding a job, and ultimately, deciding on a place where you and your practice can thrive. In this article, we cover some of the most important factors you’ll want to weigh when deciding where to practice. Plus, we’ll examine the rise of virtual mental health therapies — and what that will mean for psychologists.

In terms of where you could have the best chances for both professional and personal satisfaction providing in – person counseling services, we’ve identified four key factors that contribute to states’ being considered the “best” (or “worst”):

• Salary
• Affordability/Cost of Living
• Projected Job Demand
• Quality of Life

If you’re considering starting a career in psychology or making a move to increase your earnings, read on to learn more!

The Best & Worst States for Psychologists

Psychologists are just one branch of an overarching group of mental health counselors, also including areas such as alcohol and substance abuse counseling, among others. This article focuses on clinical and counseling psychologists.

The Best & Worst States for Psychologists: Salaries

According to annual data from the U.S. Bureau of Labor Statistics (BLS), the median yearly salary for psychologists was $96,100 as of May 2023. On the lowest end of the spectrum were salaries of around $48,820, while the top paid psychologists earned $168,870 a year. The data also revealed the following as the five top-paying states for clinical and counseling psychologists.

The 5 Highest-Paying States for Psychologists

Even in the best states for psychologists, it may be easier to find a higher salary in some areas than others. Additionally, it’s sometimes possible to find high-paying cities tucked away in states that didn’t make the list above.

While many of the top-paying metropolitan areas for clinical and counseling psychologists are located in the Pacific Northwest and California, one southern city also ranked among the top five.

Let’s take a look at which areas located in the U.S. the BLS identified as the five-top paying metropolitan areas for clinical and counseling psychologists in 2023.

The 5 Top-Paying Metropolitan Areas for Psychologists

While the Portland-Vancouver-Hillsboro, OR-WA area comes in at number six, surprisingly the New York metropolitan area doesn’t even crack the top ten. That said, psychologists in the New York/New Jersey/Pennsylvania area can still expect to earn a healthy average hourly wage of $59.57 and an average mean salary of $123,900.

That’s still nearly double what psychologists earn in U.S. territories like Puerto Rico, where the average annual salary is $61,970. To determine the five lowest-paying states for psychologists in the continental U.S., we looked at the annual salaries of states in the lowest ($61,970–$82,770) annual wage bracket.

The 5 Lowest-Paying States for Psychologists

Keep in mind that simply determining what state pays psychologists the most or least doesn’t always tell the full story. For example, while West Virginia comes in 46th in terms of the average salary you can expect to earn, it’s also one of the best states for psychologists in terms of affordability. Read on to discover the other best states for psychology jobs in terms of cost of living.

The Best & Worst States for Psychologists: Affordability/Cost of Living

It may come as no surprise that some of the best states for psychologists hoping to earn high salaries also rank among the least affordable in the nation. While some states may be able to offer psychologists only a portion, on average, of what the top – paying states can deliver, the affordability/cost of living of each state goes a long way to make a geographic area easier on a counselor’s wallet.

According to U.S. News & World Report, the “higher the cost of living in a state, the harder it is for people of similar means with those in other states to make ends meet.” When conducting its cost of living analysis, U.S. News gives one – third of the weight in the overall ranking of the most affordable states to that area’s costs of daily life and available housing. As of 2020, the most affordable states psychologists were:

1: Arkansas

2: Mississippi

3: Alabama

4: West Virginia

5: South Dakota

Now let’s jump to the other end of the spectrum with a look at which U.S. states have the highest cost of living. As of 2024, the least affordable states for psychologists are:

46: Massachusetts

47: Washington

48: New Jersey

49: Hawaii

50: California

The Best States for Psychologists: Job Demand

Based on the data available for psychologists, mental health professionals are in high demand. But you’ll discover more demand in some states than others. According to Psychology.org, the states with the highest number of projected jobs for psychologists between 2020 and 2030 are:

1: Arizona

2: Utah

3: Florida

4: Colorado

5: Georgia

(Note: Seven states and Washington, DC, were not included due to not having enough data.)

The Best & Worst States for Psychologists: Quality of Life

Whether you’re starting your career as a psychologist or considering a cross-country move, the quality of life in each state is an important factor to consider. Different sources offer different state lists due to slightly different ranking criteria. According to the U.S. News & World Report, the following five states rated the highest for quality of life for psychologists in 2024, based on data from 71 metrics across eight categories, such as healthcare, education, economy, and infrastructure.

1: Washington

2: Minnesota

3: Utah

4: New Hampshire

5: Idaho

The five bottom-ranking states for quality of life for psychologists, according to U.S. News, were:

46: West Virginia

47: Arkansas

48: Mississippi

49: New Mexico

50: Louisiana

The 10 Best & Worst States Overall for Psychologists in 2024

When working remotely or starting your own private practice, the best state to live in as a psychologist could just come down to location. Where do you want to live? WalletHub recently published this list of the top states to live in overall, factoring affordability and quality of life and considering many data points, such as safety ratings, economic outlook, education, and health. Here are some of the highlights of their top ten states:

Top 10 Best States to Live

The best states for psychologists: job growth & affordability

Psychology.org combined their data on projected job demand and current needs met with overall affordability by state. This resulted in an overall ranking of 43 states.

Unfortunately, the study does not include data for Connecticut, Delaware, Louisiana, Mississippi, Montana, Nebraska, Vermont, or Washington, DC, so that will need to be considered when planning your next step. Here’s their data for the best states to live in as a psychologist:

No matter which state you live in, you’ll likely be required to earn a bachelor’s, master’s, and PhD or PsyD in order to become a licensed psychologist. Determining the easiest state in which to become a psychologist will come down more to factors like which standardized tests are required and how many supervised internship hours you’ll need to complete.

Keep in mind, it’s vital you always double-check any requirements with the governing board in the state where you’re considering applying. But if you’re open to relocating, it may be worth considering these states where the psychologist requirements are easiest to obtain.

Idaho requires applicants to complete only 1,000 supervised internship hours, which is on the lower end compared to many other states.

In West Virginia, you can apply for a doctoral level licensure with supervision before completing your supervised internship cards. After passing the necessary exams, you can complete the required supervised hours as an approved supervised psychologist.

While Alabama does require applicants to have a bachelor’s and doctoral degree, the state doesn’t require a master’s degree. Just make sure you’re confident you can make the direct leap from bachelor’s to doctoral studies.

Hardest state to get licensed as a psychologist

When it comes to the hardest state to become licensed as a psychologist, California is a top contender. In order to become a licensed psychologist in California, you’ll not only need a qualifying doctoral degree, but also six specific types of prelicensure coursework.

Additionally, applicants are required to complete 3,000 hours worth of supervised experience, half of which need to be postdoctoral. As far as exams, you’ll need to pass both the Examination for Professional Practice in Psychology (EPPP) and the California Psychology Laws and Ethics Examination (CPLEE). Last but not least, you’ll be required to submit your fingerprints to both the DOJ and FBI for a criminal background check.

Telehealth & Counselor Considerations

With the evolving telehealth trend of mental health apps, psychologists may have the ability to work in any state they choose, as long as licensing and state laws allow for the practice. So your decision on where to live as a psychologist might come down to wherever you want to live as long as the salary meets the affordability.

How much do telehealth therapists make? ZipRecruiter calculates that the national average is $63,943. But the online mental health app Betterhelp states that its counselors make as much as $8,500 per month — or $102,000 a year.

Final Thoughts

Considering a move as a psychologist? There are many options available to you. Remember to take quality of life and affordability into consideration when deciding on a geographical area for you and your practice. After all, as a psychologist, you know that there are a variety of factors that go into happiness besides annual salary.

We’d also be slacking if we didn’t suggest you look into insuring yourself with Berxi’s medical malpractice insurance. Whether it’s your primary policy or extra protection, we offer high-quality coverage at very affordable pricing. We know you’ve got big dreams, and we hope to be part of your possible.

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Image courtesy of istock.com/Nataliia Prachova

 

Last updated on Sep 03, 2024.
Originally published on Aug 25, 2022.

More:

• Career Growth
• Mental Health

The views expressed in this article are those of the author and do not necessarily reflect those of Berxi™ or Berkshire Hathaway Specialty Insurance Company. This article (subject to change without notice) is for informational purposes only, and does not constitute professional advice. Click here to read our full disclaimer