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Real Estate Agent Expenses and Taxes in Canada

Agents pay their own brokerage fees, marketing and car costs — and commissions arrive in large, uneven amounts.

What real estate agents can usually deduct

Only the business part of a cost is deductible, and you need a receipt or record for each. See CRA's guide T4002.

GST/HST

Commissions are taxable for GST/HST; most agents pass $30,000 quickly and must register. Check with our GST/HST calculator.

Keep good records

Set aside tax from every commission cheque — uneven income makes instalments likely. Keep records for six years.

What to set aside — quick estimate

Income tax + CPP/QPPSet aside each monthEffective rate
Full breakdown by bracket:Open the tax calculator

Your province

Built for real estate agents in Canada. PlanTaxes.Pro finds your receipts in Gmail, sorts them into T2125 categories, adds the GST/HST and shows what to set aside. Opens November 27 — join the list for 20% off.

Questions

Can realtors deduct staging and photography?

Yes, when you pay them as part of marketing a listing for your business.

Do agents charge HST on commission?

Yes, once registered, at the rate where the property is located.