Are Therapy Expenses Tax Deductible? (U.S. & Canada Guide)

Therapy is one of the best decisions you can make for your well-being. However, when tax season rolls around, you might be wondering: Are therapy expenses tax deductible?

Short answer: Sometimes, yes.But like anything tax-related, the full answer depends on where you live, who you’re seeing, and what kind of therapy you’re getting.

---

 

As an affiliate partner of various brands and sponsored content, this site may earn commission on qualifying purchases. Disclaimer

---

That’s why we’re breaking it down in this guid. Here’s the answer to “are therapy expenses tax deductable?” for real people who want to feel better and maybe get a little something back for it.

This guide covers both the U.S. and Canada: are therapy expenses tax deductible, can therapy be claimed on taxes, are therapy sessions tax deductible Canada, and everything in between.

You finally invested in your mental health… now let’s talk about your financial one.

U.S. Tax Law: Are Therapy Expenses Tax Deductible in USA?

In the U.S., therapy can be tax deductible if it meets the IRS definition of a medical expense. Here’s what that really means:

• The therapy must be for the diagnosis, cure, mitigation, treatment, or prevention of a disease (including mental health conditions like depression, anxiety, PTSD, etc.).
• It must be prescribed by a licensed healthcare provider.
• You must itemize your deductions on Schedule A of your tax return.
• Your total medical expenses must exceed 7.5% of your adjusted gross income (AGI) to start counting toward deductions.

So, yes, sessions with a licensed therapist, psychologist, or psychiatrist for a documented condition in USAS? Often deductible.

But sessions for personal growth, general stress, or couples counseling? Probably not.

If your employer reimburses you for therapy or you pay through your HSA/FSA, that’s also not deductible, because you’ve already received the tax benefit.

Canada: Are Therapy Sessions Tax Deductible in Canada?

In Canada, the CRA allows mental health therapy to be claimed under the Medical Expense Tax Credit…but there are rules.

You can claim therapy expenses if:

• The services are provided by a medical practitioner authorized under provincial law (usually a psychologist, registered social worker, or clinical therapist)
• You paid out of pocket and weren’t reimbursed
• You have receipts and proof of qualifications

Are therapy sessions tax deductible in Canada? Yes, if they’re medically necessary and provided by someone who holds proper credentials.

Again, casual counseling or non-certified coaching likely doesn’t qualify. But clinical therapy for anxiety, trauma, or diagnosed conditions? That’s usually covered.

How to Claim Therapy on Your Taxes

Whether you’re filing in the U.S. or Canada, the prep is similar:

• Save your receipts. You’ll need dates, provider names, and exact amounts.
• Confirm provider credentials. Must be licensed and qualified under your country’s rules.
• Check for reimbursement. If your insurance or employer paid, you can’t double-dip.
• Use tax software, work with a pro bookkeeper, and hire a professional CPA to file your taxes.

In the U.S., use Schedule A. In Canada, use the Medical Expenses section of your T1 return.

Commonly Asked Questions (Because We Know You’re Wondering)

Are Therapy Expenses Tax Deductible – Conclusion

So, can therapy be claimed on taxes? Often, yes. And if not, it’s still one of the most important investments you can make in yourself.

Your mental health is valid, worthy, and (bonus!) sometimes tax deductible.

If you’re ready to take the next step (emotionally or financially), we’re here to help you find the right therapist—licensed, affirming, and transparent about costs.

Start your match now, and let’s take care of your mind, your heart, and maybe even your refund.