Real estate commission,
explained.
Calculate exactly what you'll pay in real estate commission across Canada. Province-specific defaults, GST/HST included, your net proceeds at a glance.
Your transaction
Defaults reflect typical Ontario rates. Commission is always negotiable.
Your estimate
Total commission
$53,675
5.65% of sale price
Seller nets
$896,325
Before mortgage payoff, legal, and adjustments
Breakdown
- Listing agent (2.50%)
- $23,750
- Buyer agent (2.50%)
- $23,750
- Commission subtotal
- $47,500
- 13% tax
- $6,175
- Total commission cost
- $53,675
The agent you choose can make a $47,500+ difference on a transaction this size. The right agent sells for closer to (or above) list price and shortens days on market.
Find a top-ranked agent in your cityEstimates only. Real commission rates vary by brokerage, agent, market conditions, and negotiation. Tax rates as of 2026. Always review your listing agreement carefully and confirm rates in writing before signing.
The basics,
in plain language.
In a Canadian real estate transaction, the seller pays commission to the listing brokerage, which then splits that fee with the buyer's brokerage. The seller typically pays commission to both sides — the buyer almost never writes a cheque to their own agent.
The split varies by province and brokerage, but the most common structure in Ontario and Quebec is 2.5% to the listing side + 2.5% to the buyer's side = 5% total, plus applicable tax (HST or GST + provincial). BC uses a tiered model that effectively works out to ~4% on most transactions; Alberta and the prairies trend higher.
The headline number isn't the whole story. The agent you choose — and what they get for you on price and timing — moves the needle far more than a 0.5% commission negotiation. The top agents in any given market consistently sell faster, closer to (or above) list price, and with fewer fall-throughs. That gap is usually worth multiples of the commission difference.
Commission,
explained.
- How much is real estate commission in Canada?
- Typical real estate commission in Canada ranges from 3% to 6% of the final sale price, split between the listing agent and the buyer's agent. Ontario and Quebec tend toward a 5% split (2.5% / 2.5%); BC uses a tiered structure (typically 7% on the first $100K, 2.5% on the balance); Alberta and the prairies trend higher. Commission is always negotiable.
- Is commission tax-deductible for the seller?
- Commission on the sale of your principal residence is generally not deductible because the sale is tax-exempt. For investment or rental properties, commission paid on sale can typically be deducted from the capital gain. Consult your accountant or the Canada Revenue Agency for your specific situation.
- Who pays real estate commission — the buyer or the seller?
- In Canada, the seller traditionally pays the full commission, which is then split between the listing brokerage and the buyer's brokerage. The buyer typically does not pay their agent directly. New CREA rules (effective 2024) require buyer representation agreements that disclose this arrangement explicitly.
- Can I negotiate the commission rate?
- Yes — real estate commission is fully negotiable in Canada. Many agents are willing to adjust their rate based on transaction value, market conditions, and the level of service provided. Top-ranked agents often command standard rates because their results justify them; less experienced agents may discount to win business.
- Does GST or HST apply to real estate commission?
- Yes. GST or HST applies to the commission paid to brokerages — not to the sale price itself. The rate depends on province: 13% HST in Ontario, 15% in the Atlantic provinces, 14.975% combined GST + QST in Quebec, 5% GST in BC, Alberta, Saskatchewan, and Manitoba.
Pick the right agent.
The numbers matter more than the rate.
Top-ranked agents earn standard commission because their results justify it. Find the ones whose track record makes the math work in your favour.