As a healthcare staffing agency that works with physical therapists every day, we’re always watching where the Best States for Physical Therapists are. If you’re a physical therapist today, or training to become one, you’ve probably asked yourself where you can build a strong career with good pay and stability.
Choosing where to practice physical therapy is a key decision in shaping your career. The right state can offer better job prospects, higher salaries, and an improved quality of life. In this article, I’ll break down the best states for physical therapists in 2025 using data from the Bureau of Labor Statistics and other reliable sources. This guide breaks down the best states for physical therapists in 2025 based on average salaries, projected job growth, cost of living, and demand.
When evaluating states for physical therapists, I focus on both the physical therapy salary and the state’s cost of living. A high salary doesn’t always translate to better take-home pay if everyday expenses are higher. For example, while California offers the highest average salaries, it also has a high cost of living index. On the other hand, states like Texas and Alabama offer competitive salaries with much lower living costs.
States with higher projected job growth show a stronger demand for physical therapy jobs. The Bureau of Labor Statistics reports that physical therapy is expected to grow 15% from 2022 to 2032. States like Arizona and Utah are seeing the highest projected employment growth for PTs, making them ideal places to look for work.
Quality of life affects both professional and personal satisfaction. States that offer a better balance between work, cost, and lifestyle generally provide more rewarding careers. In addition to salary and demand, I also consider the work settings available: hospitals, outpatient clinics, home healthcare services, and private practice.
| State | Average Annual Salary | Projected Growth (%) | Cost of Living Index |
|---|---|---|---|
| Texas | $106,960 | 28% | 93 |
| California | $114,270 | 19% | 143 |
| Nevada | $111,460 | 31% | 101.3 |
| Georgia | $99,860 | 33% | 91 |
| Arizona | $98,960 | 52% | 107.2 |
| New Jersey | $109,280 | 24% | 114.1 |
| Colorado | $98,000 | 37% | 105.5 |
| Pennsylvania | $98,970 | 20% | 99 |
| Alabama | $96,950 | 21% | 88.8 |
| Washington | $101,920 | 35% | 116.4 |
Texas stands out as one of the best states for physical therapists due to strong job growth, no state income tax, and high demand across outpatient and home healthcare settings. The average salary for PTs in Texas is around $103,710, and the state projects over 1,100 annual job openings. With a cost-of-living index near 92 and consistent demand, therapists enjoy better take-home pay and long-term career opportunities.
California offers the highest average PT salary nationwide at $114,270, and leads in annual job openings with over 1,500 expected each year. While the cost of living is high, therapists working in outpatient care centers and home health can reach six-figure salaries. The state’s large, aging population keeps demand steady across all regions.
Nevada ranks second in pay, with PTs earning an average annual salary of $111,460. The state also benefits from job growth of over 30% and a balanced cost of living. PTs are in demand across hospitals, home health services, and outpatient rehab clinics, especially in the Las Vegas and Reno areas.
Georgia combines an affordable cost of living with high demand in outpatient and orthopedic rehab settings. Physical therapists earn an average salary of $99,860, and job growth is projected at 33%. The state is part of the Physical Therapy Licensure Compact, allowing cross-state practice for PTs holding licenses in compact states.
Arizona leads the nation in projected employment growth for PTs at 52%, with an average salary of $98,960. Opportunities are strong in private practice and hospitals, and demand is driven by population growth and expanded access to healthcare services across Phoenix, Tucson, and rural areas.
New Jersey offers one of the highest PT salaries at $110,830, though the cost of living is among the highest in the U.S. The state has about 480 job openings annually, with strong hiring across outpatient rehab, educational support, and home healthcare settings.
Colorado projects job growth for physical therapists at 37%, with an average salary of $98,000. Therapists work in expanding outpatient clinics, hospital rehab, and long-term care across Denver, Boulder, and Fort Collins. The state’s growing population and active lifestyle continue to drive steady demand.
Pennsylvania employs nearly 12,000 physical therapists, making it one of the states with the highest employment levels. The average salary is $98,970, and cost of living is close to the national median. Annual job openings hover around 770, with steady hiring in both urban hospitals and rural outpatient centers.
Alabama offers affordable living and competitive salaries, with PTs earning an average of $96,950. Cost of living ranks among the lowest nationwide. Early-career therapists benefit from consistent demand in home health, rural hospitals, and private practice clinics. The state expects over 200 new openings per year.
Washington supports high demand and strong job growth at 35%, with PTs earning an average of $101,480. Therapists working in geriatrics, orthopedics, and neuro rehab are especially needed in Seattle, Spokane, and Tacoma. Opportunities are available across outpatient clinics, hospital systems, and home health agencies.
| State | Average Annual Salary | Projected Growth (%) | Cost of Living Index |
|---|---|---|---|
| Hawaii | $103,010 | N/A | 188.4 |
| Maine | $91,720 | 9% | 111.5 |
| New Mexico | $94,200 | 13% | 104.6 |
| Mississippi | $95,230 | 23% | 85.3 |
| West Virginia | $94,130 | 35% | 90.3 |
These states have either lower salaries, lower job growth, or high living costs. Hawaii, for example, has high wages but one of the most expensive housing markets in the U.S.
| Industry | Annual Mean Salary |
|---|---|
| Outpatient Care Centers | $123,900 |
| Home Health Care Services | $116,500 |
| Educational Support Services | $112,270 |
| Management of Companies | $111,950 |
| Individual and Family Services | $108,950 |
PT salaries vary depending on where physical therapists work. Outpatient clinics and home healthcare services are currently the highest-paying industries. For those with a DPT degree and experience in specialized care like wound management or sports-related injuries, private practice can also offer higher salaries.
States with higher projected job growth offer more chances for advancement. Arizona, Utah, Georgia, and Texas lead the country in projected job growth for PTs.
Physical therapy specializations such as neurological rehab, pediatrics, and sports therapy can help raise your physical therapist’s salary. Specializing in musculoskeletal dysfunction and chronic conditions also adds value.
A DPT degree opens more job opportunities and allows you to qualify for higher-paying roles in both outpatient clinics and home health settings.
Some PTs earn more by working short-term contracts in high-demand regions. The Physical Therapy Compact makes it easier to practice physical therapy in multiple states without getting a new license every time.
Picking the right state involves more than salary. You need to weigh average salaries against living costs, projected employment growth, and job availability. If you’re looking to improve your life, support your patients, and grow your career, focus on states that match both your personal and professional goals.
Choosing the right state to work as a physical therapist in 2025 means weighing salary, job growth, cost of living, and work setting. States like Texas, Arizona, and Georgia offer strong job prospects and balanced living costs, while California and Nevada lead in pay. Whether you’re new to the field or looking to relocate, understanding where physical therapists are in the highest demand can help you make informed career decisions. At Flagstar Rehab, we help match PTs with top opportunities across the country, so you can focus on your patients, not your job search.
Flagstar Rehab connects physical therapists with rewarding job opportunities in the highest-paying states and fastest-growing markets. We work with healthcare professionals across various settings, including outpatient clinics, home healthcare services, and hospitals. If you’re a physical therapist today looking for a better opportunity, we’re here to support your next step. Contact us to view current openings or speak with a recruiter.
Physical therapists make the most money in California, where the average annual salary is around $114,270, according to the Bureau of Labor Statistics. Other high-paying states include Nevada, Alaska, and New Jersey.
The best place to live for a physical therapist depends on salary, cost of living, and job availability. Texas is a top choice due to strong job growth, affordable living, and high demand. States like Georgia, Arizona, and Colorado also offer good career opportunities and personal satisfaction.
You make the most money as a physical therapist by working in outpatient care centers or home health settings in high-paying states like California or Nevada. Specializing in areas like sports injuries or neurological rehab can also increase your income.
Yes, many physical therapists earn six figures, especially those working in high-paying industries or states. With experience, specialization, or work in outpatient clinics or private practice, PTs can make over $100,000 per year.