Taxes for Real Estate Agents in Canada (2026)
Real estate agents in Canada are typically self-employed and report income on Form T2125. Commission-based income varies significantly, but there are numerous business expenses to reduce your tax burden.
Quick Tax Snapshot
Based on a typical real estate agents salary of $68,000 in Ontario (2026).
Gross Salary $68,000
Federal Income Tax -$7,833
Ontario Tax & Health Premium -$3,957
CPP Contributions -$3,838
EI Premiums -$1,108
Estimated Take-Home (Annual) $51,265
Effective tax rate: 24.6% • Marginal federal rate: 20.5% • Marginal Ontario tax & levy rate: 9.2%
Gross Salary
$68,000
Typical median (CAD)
Take-Home Pay
$51,265
After all deductions (ON)
Effective Rate
24.6%
Combined tax rate
Monthly Take-Home
$4,272
Approximate monthly
Key Tax Deductions for Real Estate Agents
- ✓ RECO or provincial real estate council registration fees
- ✓ Real estate board (MLS) membership fees
- ✓ Vehicle expenses (mileage log for client showings)
- ✓ Marketing and advertising costs (signage, photography, online ads)
- ✓ Home office expenses for administrative work
- ✓ Errors and omissions insurance premiums
Frequently asked questions
Do real estate agents pay CPP contributions?
Yes. As self-employed individuals, real estate agents pay both the employee and employer portions of CPP, effectively doubling the contribution rate. At the profession's typical $68,000 salary, this works out to roughly $7,676 in combined CPP contributions for 2025 (income below the $71,300 earnings ceiling, so no CPP2 applies).
Do real estate agents need to register for GST/HST?
Yes, once your taxable supplies (commissions) exceed $30,000 in a calendar quarter or over four consecutive quarters, you must register for GST/HST. Most active agents register voluntarily from the start to claim input tax credits on business expenses.
Can a real estate agent deduct vehicle expenses?
Yes, to the extent the vehicle is used for business purposes (client showings, property visits). You must keep a mileage log. You can deduct the business-use proportion of fuel, insurance, maintenance, and CCA or lease costs.
How is commission income reported to CRA?
Commission income is reported on Form T2125 (Statement of Business or Professional Activities) as part of your T1 return. Net business income (commission minus eligible expenses) is then added to other income and taxed at your marginal rate.
Calculate Your Actual Tax
The snapshot above uses a typical salary. Use our Income Tax Calculator to enter your exact income, province, and tax year for a personalized breakdown.
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