Psychotherapy and Counselling Therapy Should It Be Tax Exempt

Psychotherapy and Counselling Therapy Should It Be Tax Exempt? Did you know 1 in 5 Canadians experience a mental illness in any given year? Even more worrying, around 4,000 Canadians die every year by suicide.

The country is undoubtedly amidst a mental health crisis, so it’s more important than ever to provide treatments.

Thankfully, many mental health services are available in Canada for anyone to access. Many of these are tax-exempt, apart from psychotherapy and counselling therapy.

Shockingly, these highly effective therapies are the only essential services to charge GST and HST tax to patients.

It’s caused quite a debate, with many people wondering if these services should also be exempt from tax. In short, they absolutely should. There is no valid reason for paying taxes on these services, and let us explain why.

No other mental health services need to charge tax

It is entirely absurd and unjustified. As briefly mentioned in the introduction, all other mental health services are tax-free in Canada.

Psychotherapy and Counselling

therapy are the only two that need to charge tax. Why can’t these two be tax-free if other mental health services can?

The extra charges create barriers for patients Requiring 

Psychotherapy and Counselling Therapy

The biggest problem with the tax law is that it raises a barrier between these two mental health services and patients nationwide. Not everyone can afford

Psychotherapy and Counselling

therapy. Part of this is down to the fact that practitioners need to increase their rates to cover the tax charges. It’s unfair to them and not the people in need, either.

Removing tax from

Psychotherapy and Counselling

therapy would make these services more accessible. Theoretically, more people with mental health problems would be able to get a treatment that helps them. As a result, this has the potential to save many lives.

Counseling and other therapies are the most significant unmet need

There was a survey in 2018 that looked at Canada and assessed people’s needs regarding mental health services. Amongst the findings, it was discovered that counselling and other therapies were the most unmet services.

34.1% of people in Canada believed their needs were unmet in this category, compared to 9.1% believing their medication needs were unmet. It shows a clear need for services like

Psychotherapy and Counselling

It is something that people cannot get enough of, yet they need it. If we want to meet the needs of individuals suffering from mental health problems, we must make it easier for them to obtain these services. Taxing these services does the opposite, which is why it must change.

The economy would not suffer a big hit at all

People worry about the knock-on effect on the economy whenever there is talk of things becoming tax-exempt. Some argue that these mental health services must remain taxed to help support Canada. What happens when the money from these services suddenly disappears?

Well, calculations and forecasts suggest that hardly anything will change at all. There would be a predicted 0.004% decrease in Canada’s revenue if psychotherapy and counselling therapy were exempt from GST/HST taxes.

So, there’s no need to maintain the tax on these services from an economic standpoint. Realistically, that’s nothing to worry about at all.

There is a mental health crisis in the country

Finally, as we mentioned, Canada has a mental health crisis. You saw earlier stats, which paint a bleak picture of the country’s mental health.

People of all ages and backgrounds struggle with mental health issues and mental illnesses. What’s more, they need to get help.

Psychotherapy and Counselling is one of the best ways for someone to open up about their problems and receive advice. Psychotherapy is a unique technique that educates patients and helps them understand their mental issues and how to solve them.

Making these services tax-exempt will only mean more people can finally get help.

Furthermore, the mental health crisis is getting worse, thanks to the pandemic. Suffering through lockdowns and losses has meant more people are struggling than ever. Thus, providing more mental health services should be a priority.

With all things considered, Psychotherapy and Counselling Psychotherapy and Counselling therapy should be tax-exempt. They’re the only mental health services covered by GST/HST tax.

Removing this tax won’t damage the economy, but it will make these services more accessible, helping thousands of people find professional help.

We are thrilled to update you on the #StopTaxingMyTherapy campaign to remove the GST/HST on psychotherapy and counselling therapy. We have been collaborating with major stakeholders to advance MP Lindsay Mathyssen’s Bill C-218: An Act to Amend the Excise Tax Act: psychotherapy services.

A new House of Commons e-petition is now live!  

We ask all our wonderful clients to please click the link above to add your support because it’s time to remove GST/ HST on Psychotherapy services in Canada.

Why are we asking you to sign a NEW petition?

For every 500 e-signatures, THIS House of Common petition will be addressed by the government. If we work together to sign and encourage our friends and family to sign and share this new House of Commons petition, we can get rid of this tax once and for all!

 For more information, please visit, where you can easily find resources, updates, and an email link to your MP and the Minister of Finance. Using the hashtag #taxfreetherapy on social media, please post and share as much as possible!

If you’d like to learn more about psychotherapy or counselling, please don’t hesitate to contact us today.


Psychotherapy and Counselling Therapy Should It Be Tax Exempt? The answer is yes, it should. You’re trying to get better, and you shouldn’t have to worry about being able to afford the help. Contact The Insight Clinic today.

Psychotherapy and Counselling Therapy

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Getting Help at The Insight Clinic

Getting Help at The Insight Clinic