The Best States for Psychologists
Key Takeaways
- Utah ranks as the best state for psychologists due to strong projected job growth and a low cost of living.
- Rhode Island ranks second with psychologists earning a high median annual salary of $107,755 adjusted for cost of living.
- Oregon places third with a six-figure median salary, lower cost of living, and reform plans to retain professionals.
Psychologists are in high demand across the country. Many states report critical mental health care shortages, which licensed psychologists can help fill. But what are the best states for psychologists?
Data on psychologist salaries by state reveals an $82,000 salary gap between the highest-paying and lowest-paying states. Salaries, professional opportunities, and work conditions also vary by state. Demand for mental health professionals, workforce supply, and cost of living all play a role in salaries. By drawing on reputable and relevant data sources, our list identifies the best states for psychologists.
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The Top States for Psychologists
How did we determine the best states for psychologists? Our ranking adjusts median earnings for cost of living to provide a more effective comparison between states. We also considered projected employment change as a measure of demand for psychologists from 2020-2030. Finally, we looked at the percent of mental health professional needs met, which compares the number of mental health professionals to the area’s needs.
These metrics inform our list of the best states for psychologists. Visit the sources and methodology section at the end of the article for additional information on our approach.
1. Utah
Utah reports a high need for mental healthcare providers, along with strong job projections for the next decade. Paired with the state’s above-average rate of reported mental illness, Utah ranks as number one for the best state for psychologists.
Recently, Utah’s legislature passed laws to expand the number of mental health providers, including updates to telehealth regulations and licensing restrictions. That should help the state meet its above-average unmet need for mental health care, which stands at 9.3% compared to a national average of 6.2%. And thanks to Utah’s low cost of living, psychologists’ salaries go further in the state.
- Median Annual Salary Adjusted for Cost of Living: $87,058
- Projected Employment Change from 2020-2030: 24.3%
- Percentage of Health Care Professional Need Met: 54.3%
2. Rhode Island
Rhode Island ranks in the top ten for psychologist salary by state, with a six-figure median annual salary. Over 22% of Rhode Islanders reported experiencing mental illness in the past year, demonstrating a strong demand for mental health services.
However, the state’s healthcare professionals only meet around 62% of need, which indicates that Rhode Island has a provider shortage. In addition, Rhode Island reports an above-average number of children receiving mental health services, which could make it a good state for child psychologists.
In 2024, Rhode Island’s senate considered legislation that would expand access to mental health internship spots, allow out-of-state practitioners to offer telehealth services, and expand interstate licensure contracts.
- Median Annual Salary Adjusted for Cost of Living: $107,755
- Projected Employment Change from 2020-2030: 6.7%
- Percentage of Health Care Professional Need Met: 61.9%
3. Oregon
Oregon is second only to New Jersey in median annual salary. But Oregon’s lower cost of living gives psychologists a boost. The West Coast state’s above-average rate of reported mental illness, which stands at 23.8% compared to a national average of 19.9%, also indicates a strong need for mental health providers. Oregon also projects over 10% growth in jobs for psychologists from 2020-2030.
The state’s 2024 legislative session proposed several mental health care reforms, including a bill to incentivize the recruitment and retention of behavioral health professionals. Legislators also debated regulation changes to meet mental health needs, including temporary licensing for out-of-state providers.
- Median Annual Salary Adjusted for Cost of Living: $123,098
- Projected Employment Change from 2020-2030: 10.6%
- Percentage of Health Care Professional Need Met: 27.8%
4. Ohio
Ohio boasts the third-highest median annual salary for psychologists, adjusted for cost of living. The median annual salary for psychologists increased by nearly 10% over the last year. In May 2023, psychologists reported a median annual salary of $105,680. Paired with a below-average cost of living, Ohio offers an excellent foundation for psychologists to start their careers.
Ohio has demonstrated a strong commitment to enhancing mental health and well-being within its communities. In partnership with The Ohio State University, the state government has launched an initiative named SOAR (Study on Ongoing Adversity and Resilience). This research project is backed by a significant $20 million grant from the Ohio Department of Mental Health and Addiction Services. Its main goal is to uncover the root causes of persistent emotional distress, suicide, and drug overdose cases in Ohio.
- Median Annual Salary Adjusted for Cost of Living: $114,299
- Projected Employment Change from 2020-2030: 8.2%
- Percentage of Health Care Professional Need Met: 30.9%
5. New Jersey
New Jersey stands out as the state with the highest median annual salary for psychologists, even when adjusted for cost of living. But high pay is not the only reason New Jersey ranks among the best states for psychologists.
The state’s commitment to mental health services extends to legislative actions. As of 2024, a new reciprocity policy allows New Jersey mental health professionals to practice in over 30 states. The law also allows out-of-state licensed counselors to practice in New Jersey through telehealth services.
Expanding access to mental health services will help New Jersey treat the 16.4% of residents who reported mental illness in the past year, while also keeping New Jersey’s share of unmet need for care below the national average, according to Kaiser Family Foundation (KFF) data.
- Median Annual Salary Adjusted for Cost of Living: $119,799
- Projected Employment Change from 2020-2030: 10.5%
- Percentage of Health Care Professional Need Met: 17.9%
Psychologists’ Salaries by State
Which states pay the highest psychologist salaries? And how much does location matter for your earning potential as a psychologist?
The median annual clinical and counseling psychologist salary by state ranges from $130,700 on the high end to $48,780 on the low end. With location playing a major role in salaries, prospective psychologists need to factor in their location when researching earning potential.
In addition to varying by state, psychologist salaries also vary by metro area. The top-paying metro areas for clinical and counseling psychologists include Waterbury, Connecticut; San Luis Obispo-Paso Robles-Arroyo Grande, California; and San Jose, California, according to May 2023 BLS data.
Median Annual Salary for Clinical and Counseling Psychologists, by State
| Rank⇅ | State⇅ | Median Annual Salary⇅ | Median Annual Salary Adjusted for Cost of Living⇅ |
|---|---|---|---|
| 1 | New Jersey | $130,700 | $119,799 |
| 2 | Oregon | $126,830 | $123,098 |
| 3 | California | $126,450 | $113,107 |
| 4 | Washington | $110,480 | $101,465 |
| 5 | Rhode Island | $110,000 | $107,755 |
| 6 | Ohio | $105,680 | $114,299 |
| 7 | Nevada | $104,020 | $108,872 |
| 8 | Alaska | $103,530 | $99,130 |
| 9 | Maryland | $102,680 | $96,665 |
| 10 | Minnesota | $101,160 | $102,781 |
The Complete List of the Best States for Psychologists
Salary only provides one metric for the best states for psychologists. In addition to median annual salary, factors like demand also play a role. For example, Utah ranks in the top five on our list in part because of its strong projected employment metrics.
If you’re planning to become a psychologist or you’re a psychologist considering relocating to a new state, the following list can help you make an informed decision. Strong demand and a high median salary can make many states on this list a good place to work as a psychologist.
Keep in mind that this ranking is fluid because salary and job projections change annually. Similarly, the best state for you might depend on your personal goals and preferences in addition to your professional opportunities.
The Best States for Psychologists
| Rank⇅ | State⇅ | Median Annual Salary Adjusted for Cost of Living⇅ | Projected Employment Change 2020-2030⇅ | Percentage of Health Professional Need Met⇅ |
|---|---|---|---|---|
| 1 | Utah | $87,058 | 24.3% | 54.3% |
| 2 | Rhode Island | $107,755 | 6.7% | 61.9% |
| 3 | Oregon | $123,098 | 10.6% | 27.8% |
| 4 | Ohio | $114,299 | 8.2% | 30.9% |
| 5 | New Jersey | $119,799 | 10.5% | 17.9% |
| 6 | New York | $91,202 | 13.5% | 51.1% |
| 7 | Georgia | $82,905 | 20.4% | 43.2% |
| 8 | Arizona | $92,875 | 29.3% | 9.1% |
| 9 | California | $113,107 | 8.6% | 24.0% |
| 10 | Washington | $101,465 | 18.5% | 16.9% |
Sources and Methodology
The best states for psychologists were determined using a weighted average ranking of three state-level data points, including the median annual salary for clinical and counseling psychologists adjusted for cost of living, the projected change in employment for clinical, counseling, and school psychologists from 2020 to 2030, and the percentage of mental health care professional need met. Data was collected on April 16, 2024.
Median annual salary data by state were collected from the U.S. Bureau of Labor Statistics, Occupational Employment and Wage Survey. Data reflects annual earnings as of May 2023. Salaries were adjusted using Regional Price Parity data from the U.S. Bureau of Economic Analysis.
Data on the projected increase in employment for psychologists by state were collected from Projections Central. Data reflects the projected change in employment from 2020 to 2030.
Data on the percentage of mental health care professional needs met were collected from the Kaiser Family Foundation. Data reflects percent of health professional needs met as of November 1, 2023.
Data was normalized by creating an index score where the highest value for each achieved a score of 100. Median annual salaries adjusted for cost of living comprised 60% of the final score. Both projected employment change and the percentage of mental health needs met comprised 20% of the final score.
