Mental Health Care in Canada: A Growing Area of Need

Mental health has become an increasingly visible part of Canada’s overall health landscape. Whether related to stress, anxiety, trauma, depression, burnout, or other emotional challenges, many individuals seek professional support to navigate difficult periods in their lives.

Current data suggests that 1 in 5 Canadians experience a mental health concern each year, and suicide remains a significant public health issue. These numbers reflect a rising awareness of the importance of mental health services, but they also highlight ongoing challenges related to access and affordability.

Within this broader context, psychotherapy and counselling therapy hold an important role. They are widely used, evidence-informed approaches that help individuals explore emotions, understand behavioural patterns, and build coping strategies. Yet unlike most other regulated health services in Canada, they continue to be subject to GST/HST taxation.

This raises a policy question that has been discussed increasingly over the last decade:

Should psychotherapy and counselling therapy be tax-exempt?

Rather than offering a definitive answer, this article outlines the factors involved, the implications of taxation, and the context that shapes the discussion.

Why Some Health Services Are Tax-Exempt and Others Are Not

Canada’s tax rules for health services are based on the idea of medical necessity. Services that fall under this category—such as physician care, psychological assessments, physiotherapy, chiropractic care, occupational therapy, and others—are exempt from GST/HST.

Psychotherapy and counselling therapy are regulated mental health services, yet they remain categorized differently for tax purposes. This classification is historical and administrative in nature. It does not reflect the effectiveness or value of these services, but rather how legislation originally distinguished them from other health professions.

As mental health care has evolved over time, these distinctions have become less clear. Many Canadians now rely on psychotherapy or counselling therapy as their primary form of mental health support, leading to questions about whether the tax rules still reflect the current landscape of care.

How Taxation Influences Accessibility

Taxation affects the final cost that clients pay for therapy. For some individuals, the added GST/HST is manageable; for others, it becomes a point of hesitation or a limiting factor.

When the total price of therapy increases:

• some clients reduce the frequency of sessions

• others delay seeking help

• long-term treatment may become inconsistent

• clinicians may need to adjust their fees to account for tax requirements
  

This does not mean taxation is the sole or primary barrier to mental health care. Factors such as insurance coverage, geographical availability, scheduling, and personal readiness also play significant roles. However, financial considerations are one of the most commonly cited challenges for individuals considering therapy.

In regions such as Whitby, Oshawa, Ajax, Pickering, and the wider Durham Region, this dynamic is especially visible as families navigate rising costs of living alongside mental health needs.

Why People Seek Psychotherapy and Counselling Therapy

Psychotherapy and counselling therapy are used to support a wide range of concerns. Individuals often seek these services for:

• managing stress or anxiety

• navigating depression or low mood

• addressing trauma or past experiences

• understanding emotional patterns

• improving communication and relationships

• exploring identity or major life transitions

• coping with grief, loss, or change

• supporting personal growth
  

These therapies are structured, goal-oriented, and grounded in clinical training and evidence-informed approaches. Regardless of the tax status, their purpose remains to help individuals understand their internal experiences and develop skills that support healthier functioning.

Because demand for therapy continues to grow, questions about accessibility—including financial accessibility—have naturally become part of the national conversation.

Unmet Needs in Canada’s Mental Health System

A national mental health survey conducted in 2018 found that:

• 34.1% of participants felt their need for counselling or therapy was unmet

• by comparison, 9.1% felt their need for medication was unmet
  

These findings suggest a significant demand for talk-based therapeutic support. The reasons for unmet needs vary, but they often include:

• financial limitations

• limited insurance coverage

• long wait times for publicly funded services

• uncertainty about where to find help

• stigma or hesitation
  

Whether or not taxation is the primary factor, it is one piece of a broader accessibility puzzle that many Canadians experience.

Economic Considerations

Any discussion about tax policy requires examining potential economic impact. Forecasts suggest that removing GST/HST from psychotherapy and counselling therapy would have a relatively minimal effect on federal revenue. However, tax policy is influenced by multiple factors beyond revenue alone, including regulatory consistency and historical precedent.

From a financial perspective, tax exemption could:

• lower out-of-pocket costs for clients

• potentially make services more accessible

• reduce discontinuation of therapy due to cost
  

At the same time, any policy change must balance affordability with administrative clarity, consistency across health professions, and long-term fiscal planning. These factors contribute to why the issue remains a topic of discussion rather than an immediate legislative change.

The Context of Canada’s Mental Health Landscape

The past several years have intensified mental health challenges across the country. Many individuals continue to experience:

• heightened stress

• anxiety linked to uncertainty

• workplace exhaustion

• grief from personal losses

• social isolation

• difficulty maintaining routines
  

Children, teens, adults, caregivers, and older adults have each been affected in different ways. These shifts have placed increased pressure on mental health systems, highlighting the need for accessible and sustainable services.

In this context, psychotherapy and counselling therapy continue to serve as important supports. Regardless of policy discussions, their role in emotional recovery and resilience remains steady.

A Familiar and Professional Perspective on the Issue

At The Insight Clinic, we meet individuals at many different stages of their mental health journeys. Some are beginning therapy for the first time; others are returning after a difficult period; many are simply trying to understand why they are feeling the way they do.

Across Whitby and the Durham Region, clients frequently express concerns about the cost of therapy, especially when budgeting around family responsibilities, work commitments, and daily expenses. The tax added to psychotherapy and counselling sessions can influence how often individuals attend, how long they remain in treatment, or whether they begin at all.

From a clinical standpoint, therapy often works best when it is consistent, paced, and adapted to the individual. When financial barriers interrupt this continuity, therapeutic progress may be affected.

While perspectives differ on whether psychotherapy and counselling therapy should be tax-exempt, the importance of accessibility remains clear. The conversation continues because many Canadians recognize the value of mental health care and the need to align affordability with growing demand.

A Neutral Summary of the Debate

The question “Should psychotherapy and counselling therapy be tax-exempt?” does not have a simple answer. Instead, it reflects a complex intersection of healthcare policy, accessibility, economics, and evolving public needs.

Arguments often noted in favour of tax exemption include:

• improved affordability for clients

• increased accessibility to mental health care

• consistency with other exempt health services

• potential reduction in crisis intervention costs
  

Arguments for maintaining the tax classification include:

• the historical structure of GST/HST legislation

• the distinction between different types of health services

• administrative clarity across various professions
  

The goal of this conversation is not to frame one perspective as correct or incorrect, but to recognize that mental health care continues to evolve. As needs grow and services expand, policy discussions naturally follow.

Conclusion

Psychotherapy and counselling therapy play a significant role in the mental health landscape of Canada. These services help individuals understand themselves more deeply, navigate emotional challenges, and build healthier patterns over time. As more Canadians seek support, questions about accessibility—including taxation—are becoming increasingly relevant.

Whether psychotherapy and counselling therapy should be tax-exempt is a policy question shaped by financial, administrative, and public health considerations. While viewpoints differ, the shared understanding is clear: mental health services are essential to individual and community well-being.

At The Insight Clinic, our focus is on providing professional, supportive, evidence-informed care to individuals across Whitby and the Durham Region. Regardless of ongoing policy discussions, our commitment to accessible and compassionate mental health support remains central to our work.

Next Steps

If you’d like to learn more about psychotherapy or counselling therapy, or if you’re considering beginning your mental health journey, contact The Insight Clinic in Whitby.
Our clinicians serve Oshawa, Ajax, Pickering, and the entire Durham Region, providing professional and familiar support in a safe, welcoming environment.
Whenever you’re ready, we’re here to help.