2025 Psychiatry Salary Report: Compensation Trends, Regional Data, and Negotiation Insights

Introduction

Psychiatry compensation climbed another 6–8% in 2025, continuing a five-year trend driven by workforce shortages and expanded mental health funding across the U.S. With telepsychiatry now a permanent care model and behavioral health initiatives scaling nationwide, psychiatrists remain among the most in-demand clinicians in medicine.

This report breaks down the latest salary benchmarks by clinical setting, region, and experience level, drawing from both MGMA data and MedStaff Nationwide's internal placement statistics. You'll also learn how to negotiate your next offer confidently using current market intelligence.

Compensation by Clinical Setting

Inpatient Psychiatry — $300K–$395K

Inpatient psychiatrists continue to command the highest base compensation due to the complexity and intensity of their work. These positions typically involve acute care hospitals, psychiatric hospitals, and residential treatment centers, often requiring 24/7 coverage and managing involuntary holds.

Facilities compensate accordingly—with productivity bonuses and call stipends frequently pushing total pay above $400K.

Example: A community behavioral health hospital in Ohio recently offered a $380K base plus a $40K sign-on bonus for a full-time inpatient psychiatrist—one of several similar placements MedStaff facilitated this year.

Outpatient Psychiatry — $260K–$335K

Outpatient psychiatrists earn slightly less on average but benefit from predictable schedules and superior work-life balance. Common practice settings include integrated health systems, private practices, and community mental health centers.

Subspecialists in child/adolescent or addiction psychiatry can surpass $350K when productivity incentives are factored in. Based on recent MedStaff placements, outpatient roles in the Midwest and South now often include loan repayment or hybrid-work flexibility as additional incentives.

Telepsychiatry — $240K–$310K

Telepsychiatry compensation runs about 10–15% lower than on-site positions, but offers unmatched geographic freedom and scheduling control. Hybrid schedules (for example, three on-site days and two remote days) are rapidly becoming the preferred model.

Since 2020, telepsychiatry has evolved from a temporary fix to a stable career track, particularly for clinicians prioritizing family balance or multi-state licensing flexibility.

Academic Psychiatry — $210K–$260K

Academic roles pay the least in base salary, but their total value extends beyond cash. Teaching hospitals and university programs provide protected research time, CME budgets, student loan repayment, and strong job security.

Division chiefs or program directors often earn $300K+ with administrative stipends—and the prestige, publishing opportunities, and influence on training the next generation can be invaluable career assets.

Regional Variations

Northeast (CT, MA, NY, PA)

The Northeast remains a competitive market with higher nominal pay offset by steep living costs. Outpatient psychiatrists average $305K, and inpatient roles approach $390K in dense metro areas.

Sign-on bonuses typically fall between $25K and $40K, while housing or relocation allowances are increasingly common in suburban and rural parts of these states.

Midwest (IL, IN, MI, OH)

The Midwest saw the fastest salary growth nationwide—up roughly 9% year-over-year. Expanding FQHC networks and rural mental health initiatives have created a steady pipeline of new openings. Combined with a lower cost of living, psychiatrists relocating here achieve some of the highest effective compensation in the country.

Retention bonuses after year two are now standard practice, and employers are more flexible with schedules to attract clinicians.

South (TX, FL, GA, NC, SC)

Southern states lead the nation in recruitment aggressiveness. Sign-on bonuses averaging $40K–$60K, flexible start dates, and relocation coverage are routine.

Population growth, Medicaid expansion, and increased funding for behavioral health are driving demand. Texas and Florida, in particular, continue to post double-digit job growth in psychiatry positions facilitated by MedStaff.

West Coast (CA, WA, OR)

Despite high living expenses, the West Coast offers some of the nation's highest base salaries—often exceeding $320K for outpatient and $380K+ for inpatient roles. However, competition from telehealth providers has tightened supply in major metros.

Clinicians should seek housing assistance, childcare subsidies, or CME stipends when negotiating offers in these high-cost markets.

Experience Level Impact

Experience remains a key differentiator in 2025. Many MedStaff placements show experienced psychiatrists receiving total comp packages near $400K, particularly when including performance and quality incentives.

Negotiation Strategies for 2025

Even in a strong market, success comes from preparation and professionalism. Based on hundreds of MedStaff placements, here's what works best:

The Outlook for 2025 and Beyond

Psychiatry's trajectory remains upward. As behavioral health integration deepens into primary care, and as telehealth expands reach, psychiatrists can expect both greater choice and stronger leverage. Employers are finally adapting, offering creative compensation structures, sign-on flexibility, and hybrid options to secure top talent.

For employers, the takeaway is clear: to attract and retain psychiatrists, act quickly, market competitively, and provide autonomy plus flexibility.

For clinicians, it's a year to be mobile, data-driven, and confident in your worth.

Conclusion

2025 is shaping up as one of the strongest years in decades for psychiatrist compensation. Whether you're seeking your first attending position, exploring telepsychiatry, or negotiating a leadership offer, the key is informed decision-making backed by real data.

MedStaff Nationwide continues to monitor compensation across all settings and regions, leveraging this insight to guide both clinicians and employers toward equitable, efficient matches.