Clinical Social Work

Are Social Work Counselling Services HST-Exempt in Ontario?

Quick Answer

Often, yes. Counselling and psychotherapy provided by a Registered Social Worker can be GST/HST-exempt under the social-work exemption when the conditions are met — broadly, the service must be rendered to an individual within a professional-client relationship and provided for the prevention, assessment, remediation, or coping support described in Schedule V, Part II, section 7.2 of the Excise Tax Act. Organizational consulting, training, and program evaluation generally remain taxable at 13% HST. As of May 2026.

Direct Answer

Clinical counselling provided by a Registered Social Worker (RSW) in Ontario is generally GST/HST-exempt, provided the conditions are met. What is not exempt is the non-clinical side of many social work careers — consulting, facilitation, training, and program work. The distinction is about the nature of the service, not your title.

The Social-Work Exemption

Social work counselling is usually exempt under section 7.2 of Schedule V, Part II of the Excise Tax Act. That provision covers services rendered in the practice of social work when the service is rendered to an individual within a professional-client relationship and is provided for the prevention, assessment, or remediation of, or to assist the individual in coping with, a physical, emotional, behavioural, or mental disorder or disability.

CRA’s 2026 psychotherapy and counselling therapy memorandum is careful on this point: when a social worker provides psychotherapy that is part of the scope of social work, CRA treats the person as practising social work, not the profession of psychotherapy. For a typical RSW running a private counselling practice, clinical sessions with individual clients can still be exempt, but the exemption route is the social-work provision.

Clinical Counselling vs. Consulting

The line that matters for HST is clinical care to an individual versus everything else:

  • Exempt: individual, couples, and family counselling delivered for treatment purposes.
  • Taxable: organizational consulting, staff training and workshops, program design and evaluation, facilitation contracts, administrative or professional-development supervision, and expert or assessment reports prepared for third parties.

Many social workers do both, which creates a mixed practice with two revenue streams to track separately.

HST Registration and the $30,000 Threshold

If all of your revenue is exempt counselling, you generally do not register for HST. If your taxable revenue exceeds $30,000 over four consecutive calendar quarters, you must register and charge HST on that portion. Once registered, you can claim input tax credits only on expenses tied to your taxable work — not your exempt counselling.

Practical Steps

Set up your books so exempt and taxable revenue sit in separate accounts from day one, configure your practice-management software to mark clinical sessions as non-taxable, and monitor your taxable revenue against the threshold so you register at the right time and only for the right portion.

Wellspring Accounting handles this for Registered Social Workers across Ontario, or read our guide to GST/HST for mental health practitioners.

Related Questions

Does my OCSWSSW registration make all my work exempt?

No. Registration is necessary but not sufficient. The exemption attaches to clinical counselling rendered to an individual for a health-care purpose. Consulting, training, and organizational work fall outside it and are taxable.

Does the June 2024 counselling therapy change make all RSW counselling exempt?

No. CRA's 2026 psychotherapy and counselling therapy memorandum says a social worker who provides psychotherapy is generally practising social work, not psychotherapy, and should look to the social-work exemption instead. In Ontario, RSW counselling is usually analyzed under section 7.2 of Schedule V, Part II.

Do I charge HST on supervision I provide to other social workers?

Often yes, but the facts matter. CRA's psychotherapy guidance recognizes that some clinical supervision can be exempt where it is within the regulated scope and safeguards a client's well-being. Administrative, educational, or professional-development supervision that is not rendered to an individual for a qualifying health-care purpose is generally taxable.

When do I have to register for HST?

When your taxable revenue (consulting, training, supervision, expert reports) exceeds $30,000 over four consecutive calendar quarters. Exempt counselling does not count toward that threshold.

Sources

  1. Excise Tax Act — Schedule V, Part II (Health Care Services)
  2. CRA — GST/HST Memorandum 25-3: Psychotherapy and Counselling Therapy Services
  3. Ontario College of Social Workers and Social Service Workers (OCSWSSW)
  4. CRA — When to register for and start charging the GST/HST

Related Resources

Last Updated: May 2026

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