Is Psychotherapy HST-Exempt in Ontario?

The Short Answer

Psychotherapy is now generally HST-exempt in Ontario. The federal government added psychotherapy and counselling therapy services to the list of exempt health care services effective June 20, 2024. For a Registered Psychotherapist with CRPO delivering clinical sessions to individuals, that means no HST on session fees from that date forward.

The exemption is conditional, not automatic — it depends on who provides the service and why.

What Changed on June 20, 2024

Before this date, psychotherapy was not on the exempt list, and many psychotherapists were required to register for and charge HST once their revenue exceeded $30,000. The 2024 amendment to Schedule V, Part II of the Excise Tax Act added psychotherapy and counselling therapy services, putting them on the same footing as other exempt health professions. CRA’s Memorandum 25-3 sets out the detailed conditions.

When the Exemption Applies — and When It Doesn’t

The exemption applies when the service is rendered to an individual by a practitioner registered to provide it for a health-care purpose. In practice:

• Exempt: individual and (generally) couples or family psychotherapy delivered for treatment, by a CRPO Registered Psychotherapist.
• Exempt or fact-dependent: clinical supervision where it is within CRPO scope and its purpose is to safeguard a client’s well-being.
• Taxable: life or executive coaching, corporate wellness workshops, training delivered to organizations, and expert or medico-legal reports prepared for a third party.

A practice that does only clinical work is fully exempt. A practice that mixes therapy with coaching or corporate contracts has both exempt and taxable revenue to track.

Transitioning Off HST Registration

If you charged HST before June 2024, do not simply stop filing. Depending on your remaining taxable revenue you may deregister entirely or keep a registration for the taxable portion, and there are transitional items — including potential adjustments — to address on your final return. Getting this wrong can create either missed filings or unnecessary HST collected after the exemption applied.

What This Means for Your Practice

For most psychotherapists, the day-to-day result is that you stop charging HST on clinical sessions and configure your practice-management software (Jane App, Owl Practice) to mark them as non-taxable. The trade-off is that you can no longer claim input tax credits on expenses tied to those exempt services. If you keep taxable coaching or corporate revenue, you track it separately and register only for that portion once it exceeds $30,000.

Wellspring Accounting handles this exempt/taxable split and the HST transition for psychotherapy practices across Ontario, or read our guide to GST/HST for mental health practitioners.