Real Estate Commission Calculator Canada
By Hami Tahm · Last reviewed August 2026
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Selling a home in Canada costs more than the percentage you were quoted, because sales tax is charged on the commission and a tiered quote doesn't mean what it sounds like. Selling in a specific province? Alberta, British Columbia, and Ontario each have their own page with the local convention already filled in.
How much is real estate commission in Canada?
There is no standard commission rate in Canada — it is negotiated, not regulated. Alberta and British Columbia are usually quoted as a tiered rate of 7% on the first $100,000 and roughly 2.5–3% on the balance, plus 5% GST. Ontario and most other provinces are usually quoted flat, most commonly 5% of the whole price, plus that province's GST or HST. Because sales tax is charged on the fee, a 5% Ontario quote costs 5.65% of the sale price, and a 7%/3% Alberta quote on a $500,000 home works out to 3.99% including GST.
There is no set commission rate in Canada
Your sale
Ontario is usually quoted as one percentage of the whole price — commonly 5%, split about evenly between the two brokerages — plus 13% HST.
What you'd pay
What that actually works out to
5.65%
of your sale price, including HST.
What you'd walk away with
Every one of these numbers is negotiable
There is no set commission rate in Canada — not in any province, not for any brokerage. The rate, the split, the structure, and even who pays are all agreed between you and your agent, and written into the listing agreement. The figures this page starts with are just what's commonly quoted. Replace them with what you've actually been offered.
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Key Takeaways
- No province in Canada sets or caps real estate commission — under the federal Competition Act, brokerages agreeing on a rate would be the offence, so a “standard rate” cannot legally exist.
- Sales tax is charged on the commission, not the home: 5% GST in Alberta and BC, 13% HST in Ontario. A 5% Ontario quote therefore costs 5.65% of the sale price.
- A tiered 7%/3% quote and a flat 5% quote cross over near a $200,000 sale price — below it the flat quote is cheaper, above it the tiered one is, and the gap widens as the price rises.
- The seller conventionally pays the whole commission out of closing proceeds and the listing brokerage passes about half to the buyer's brokerage — but who pays, how much, and how it splits are all negotiable.
- The buyer-side share and the rate charged when no second brokerage is involved move the total as much as the headline percentage, and are far less often contested.
- On an investment or rental property the commission is an outlay of disposition that reduces your taxable capital gain; on a principal residence the exemption usually leaves no gain to reduce.
Why the quoted rate isn't what you pay
Two things move the real number away from the percentage on the listing agreement.
Sales tax is charged on the commission. The fee is a service, so GST or HST applies to it — 5% in Alberta and BC, 13% in Ontario. A 5% commission in Ontario costs 5.65% of the sale price once HST is added. That surprises people, because the tax is invisible in the way the rate is usually quoted.
A tiered quote works out lower than it sounds. “7% and 3%” means 7% applies only to the first $100,000, not the whole price. On a $400,000 home that averages about 4%; on a $1,000,000 home it's closer to 3.4%. The higher the price, the further the effective rate falls below the headline — which also means the tiered structure is relatively more expensive on cheaper homes.
Who actually pays it
Conventionally the seller pays the whole commission out of the sale proceeds, and the listing brokerage passes roughly half to the buyer's brokerage. The buyer doesn't write a cheque, but the cost is inside the price they paid.
That convention is not a rule. Who pays, how much, and how it splits are all negotiable, and buyer-side arrangements in particular have been changing.
There is no standard commission rate
Not in any province, and not for any brokerage. Commission is not regulated in Canada — the federal Competition Act treats the idea of a going rate as a competition problem precisely because believing in one costs sellers money. Alberta's RECA and Ontario's TRESA both require the rate to be negotiated and written into the listing agreement.
The figures this calculator starts with are the structures most commonly quoted, not rates you have to accept. Reviewed August 2026.
What else comes out of the sale
Commission is the biggest line, but it isn't the only one. Your mortgage balance is paid off at closing, and if you're breaking a fixed term early there may be a prepayment penalty on top — use the mortgage penalty calculator to size that before you list. Legal fees, any outstanding property tax, and moving costs come off as well.
If you're buying again afterwards, the closing cost calculator covers the other side of the move, and land transfer tax is usually the largest single cost on a purchase.
What commission actually costs in Canada, price by price
The table below runs the structure most commonly quoted in Canada through the same engine as the calculator above. The last column is the one worth reading: the effective rate — total commission including sales tax, as a share of the sale price. It is the number that leaves your proceeds, and it is almost never the number you were quoted.
| Sale price | Commission | GST | Total | Effective rate |
|---|---|---|---|---|
| $150,000 | $7,500 | $375 | $7,875 | 5.25% |
| $400,000 | $20,000 | $1,000 | $21,000 | 5.25% |
| $700,000 | $35,000 | $1,750 | $36,750 | 5.25% |
| $1,000,000 | $50,000 | $2,500 | $52,500 | 5.25% |
With a flat structure the effective rate never moves: 5.25% of the price at every level, because both the fee and the GST on it scale with the sale price. Predictable, but it also means an expensive home costs proportionally the same as a cheap one — which is exactly what makes the rate itself worth negotiating at higher prices.
Tiered or flat: which structure costs less?
Canada uses two shapes. Alberta and British Columbia are usually quoted as a tiered rate — 7% on the first $100,000, then a lower rate on everything above. Ontario and most of the rest of the country are usually quoted flat — one percentage of the whole price.
They cross over. Below roughly $200,000, a 5% flat quote costs less than a 7%/3% tiered one; above it, the tiered quote is cheaper and the gap widens with every additional dollar of price. That single fact is worth more than any rate table, because it tells you which structure to ask for before you negotiate the number inside it.
| Sale price | Tiered | Flat | Cheaper structure |
|---|---|---|---|
| $150,000 | $8,500 | $7,500 | Flat |
| $400,000 | $16,000 | $20,000 | Tiered |
| $700,000 | $25,000 | $35,000 | Tiered |
| $1,000,000 | $34,000 | $50,000 | Tiered |
Province pages with the local convention already filled in: Alberta, British Columbia, and Ontario.
How and when the commission is actually paid
You never write a cheque for commission, which is a large part of why sellers underestimate it. On closing day the buyer's funds arrive with your lawyer or notary, who pays out in a fixed order: the mortgage balance and any discharge fee first, then the brokerage commission plus GST, then legal fees and adjustments. What is left is wired to you.
Two consequences follow. First, the commission is deducted from your equity, not your income, so a seller with a large mortgage feels it far more sharply. Second, if the sale price does not cover the mortgage plus the commission, the shortfall is yours to fund before closing can complete — which is why the calculator above shows a negative net figure rather than a reassuring zero.
If you are breaking a fixed term to sell, the prepayment penalty lands in the same settlement. Size it with the mortgage penalty calculator before you list, not after you have accepted an offer.
Five things you can negotiate that are not the headline rate
Most sellers negotiate one number and stop. These terms move the total as much or more, and are far less often contested:
1. The split with the buyer's brokerage
Conventionally about half the total goes to the co-operating brokerage. You set that share in the listing agreement. Lowering it is the single largest lever available — with a real trade-off, since a below-market offer can reduce buyer-agent showings in a slow market. It costs nothing to ask what the local norm is.
2. The rate if the brokerage finds the buyer itself
If no second brokerage is involved, there is no second brokerage to pay. Many agreements are silent on this and default to the listing brokerage keeping both sides. A reduced rate in that scenario is a standard, reasonable request — put it in writing.
3. The length of the listing term
A shorter term is not a discount, but it is leverage. A 60-day agreement that you can decline to renew keeps pressure on performance in a way a 180-day one does not.
4. The holdover period
The clause that makes commission payable if you sell privately, after expiry, to someone the brokerage introduced. Typically 60 to 90 days. It is legitimate — it stops buyers and sellers from waiting out the agreement — but the length is negotiable and worth reading before you sign, not after.
5. What the fee actually buys
Professional photography, floor plans, staging, print, and paid listing promotion are sometimes included and sometimes billed on top. Two identical rates can represent very different packages. Ask for the marketing spend in writing and compare that, not just the percentage.
Flat-fee, discount, and private sale
Full-service percentage listings are the default, not the only option. The honest comparison is not “full commission versus nothing”, because most sellers using the cheaper routes still offer commission to a buyer's brokerage to stay competitive. The realistic saving is the listing side alone.
| Route | What you pay | What you do yourself |
|---|---|---|
| Full-service listing | Percentage of the sale price plus GST, paid on closing | Little — pricing, marketing, showings and negotiation are handled |
| Flat-fee / mere posting | A set fee up front, often paid whether or not the home sells | Showings, negotiation, and usually your own pricing research |
| Discount / limited service | A reduced percentage, sometimes with a lower marketing budget | Varies by package — confirm exactly what is excluded |
| Private sale (FSBO) | No listing commission; buyer-side commission still commonly offered | Everything, including MLS exposure if you want it |
Run each option through the calculator as a different rate rather than trusting the advertised saving. A flat fee of a few thousand dollars plus a 2.5% buyer-side offer is a real number you can compare directly against a full-service quote on the same sale price.
Who regulates commission in Canada
Real estate is licensed province by province, but competition law is federal. The Competition Bureau has taken enforcement action in this industry precisely because the belief in a going rate is what keeps rates from moving.
This is the point most commission articles get backwards, so it is worth stating plainly: no body in Canada sets, caps, or recommends a commission rate. What the Competition Bureau governs is conduct, licensing and disclosure. Under the federal Competition Act, brokerages agreeing among themselves on a rate would be the offence — which is precisely why a “standard rate” cannot exist, and why every figure on this page is editable.
Treat every percentage here as a starting point
After the sale
Commission is the largest single cost of selling, but the net figure depends on what follows. If the property was a rental or second home, the commission is an outlay of disposition that reduces your taxable gain — the capital gains tax calculator accounts for selling costs directly.
If you are buying again, the closing cost calculator covers the purchase side, and land transfer tax is usually the biggest line on it. To see what the sale proceeds support as a down payment, use the affordability calculator.
Frequently asked questions
- How much is real estate commission in Canada?
- There is no standard rate. Alberta and BC are usually quoted as a tiered 7% on the first $100,000 and roughly 2.5–3% on the balance; Ontario is usually a single percentage of the whole price, most commonly 5%. GST or HST is charged on the fee on top. All of it is negotiable.
- Is GST or HST charged on realtor commission?
- Yes. The commission is a service, so sales tax applies to the fee itself — 5% GST in Alberta and BC, 13% HST in Ontario. A 5% Ontario commission therefore costs 5.65% of the sale price.
- Who pays the real estate commission?
- Conventionally the seller pays the whole commission out of the sale proceeds, and the listing brokerage passes roughly half to the buyer’s brokerage. That is a convention rather than a rule — who pays and how it splits are negotiable.
- Is real estate commission negotiable?
- There is no set commission rate anywhere in Canada. Commission is not regulated — the rate, the split and the structure are negotiated between you and your agent and written into the listing agreement. Any figure quoted as standard is a starting point, not a requirement.
- How much is commission on a $500,000 home in Canada?
- On a $500,000 sale, a 5% flat quote is $25,000 before tax — $28,250 with 13% HST in Ontario, or $26,250 with 5% GST elsewhere. A tiered 7%/3% quote on the same price is $19,000 before tax, or $19,950 with GST. The tiered structure is cheaper at this price; the two cross over as the price rises.
- When is real estate commission paid?
- On closing day, out of the sale proceeds. Your lawyer or notary deducts the commission and the mortgage payout from the buyer’s funds and sends you the balance. You never write a cheque for it, which is why sellers often underestimate the amount.
- Do I pay commission if my house doesn’t sell?
- Under a conventional listing agreement, no — commission is earned on a completed sale. Two exceptions are worth reading for: a holdover clause can make commission payable if you sell privately to a buyer the brokerage introduced, typically within 60–90 days of expiry, and some flat-fee or marketing packages charge upfront regardless of outcome.
- Is real estate commission tax deductible in Canada?
- Not as an income-tax deduction, but on an investment or rental property it counts as an outlay of disposition that reduces your capital gain — so it lowers the tax you owe on the sale. On a principal residence the exemption usually leaves no gain to reduce. Confirm with the CRA or your accountant.
- What happens to the commission if the buyer has no agent?
- It depends on your listing agreement. Some specify a lower total rate when no cooperating brokerage is involved; others let the listing brokerage keep both sides. Ask for that clause in writing before you sign — it is one of the easiest terms to negotiate and one of the most commonly overlooked.
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