Ontario Real Estate Commission Calculator
By Hami Tahm · Last reviewed August 2026
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Ontario commissions are usually one percentage of the whole sale price — but 13% HST is charged on top of the fee, so 5% isn't 5%. Here's the real cost on your price, and what's left once the mortgage is paid off.
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How much is real estate commission in Ontario?
Ontario commission is most commonly quoted as a single percentage of the whole sale price — usually 5%, split roughly evenly between the listing and buyer brokerages — plus 13% HST on the fee. That makes the real cost 5.65% of the sale price: on a $1,000,000 Toronto home, $50,000 before tax and $56,500 after. Rates between 3.5% and 5% are all common depending on the brokerage and service model, and under TRESA the rate, the split, the structure and even who pays are negotiable.
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
- Ontario is normally quoted flat — one percentage of the whole price, most commonly 5%, split about evenly between the two brokerages.
- 13% HST is charged on the commission, so a 5% quote costs 5.65% of the sale price. Ontario has the widest gap between the quoted and the real rate of any province.
- On a $1,000,000 Toronto sale, a 5% commission is $50,000 before tax and $56,500 with HST — $28,250 to each brokerage side including tax.
- TRESA replaced REBBA and changed representation and disclosure, but introduced no set rate: rates, splits and structures remain fully negotiable and must be documented in writing.
- The HST on commission is not rebatable to a residential seller — Ontario's new-housing HST rebates apply to the purchase price of a newly built home, not to a brokerage fee.
- Because the flat structure charges the same proportion at every price, the rate itself is the only lever — which makes it more worth negotiating on an expensive home than in a tiered province.
How Ontario commissions are usually quoted
Unlike Alberta and BC, Ontario normally quotes one percentage of the entire sale price, most commonly 5%, split roughly evenly — 2.5% to the listing brokerage and 2.5% to the buyer's. Rates in the 3.5%–5% range are all common depending on the brokerage and service model.
Then 13% HST is added to the fee. A 5% commission costs 5.65% of the sale price once HST is counted — on an $800,000 home that's $45,200 rather than the $40,000 the quote implies. Ontario has the highest tax-on-commission in the country, so the gap between the quoted and the real rate is widest here.
A flat structure means the rate is the only lever. In Alberta and BC the tiered shape drags the effective rate down automatically as the price rises. In Ontario it never moves: 5.65% on a $600,000 sale and 5.65% on a $2,000,000 one. That is exactly why negotiating the percentage matters more on an expensive Toronto property than most sellers assume.
Under TRESA, everything about the arrangement is negotiable: the rate, the split, the structure, and who pays. Discount, flat-fee and mere-posting models are all legal in Ontario.
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 Ontario, price by price
The table below runs the structure most commonly quoted in Ontario 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 | HST | Total | Effective rate |
|---|---|---|---|---|
| $600,000 | $30,000 | $3,900 | $33,900 | 5.65% |
| $800,000 | $40,000 | $5,200 | $45,200 | 5.65% |
| $1,000,000 | $50,000 | $6,500 | $56,500 | 5.65% |
| $1,500,000 | $75,000 | $9,750 | $84,750 | 5.65% |
With a flat structure the effective rate never moves: 5.65% of the price at every level, because both the fee and the HST 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.
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 HST, 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 HST, 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 Ontario
RECO administers TRESA, which replaced REBBA. TRESA changed representation and disclosure — designated representation, the option of open offers — but introduced no set rate.
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 Real Estate Council of Ontario (RECO) 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
- What is the typical real estate commission in Ontario?
- Ontario normally quotes a single percentage of the whole sale price, most commonly 5%, split roughly evenly between the listing and buyer brokerages. Rates between 3.5% and 5% are all common depending on the brokerage and service model.
- How much HST is charged on realtor commission in Ontario?
- 13%, charged on the commission itself. A 5% commission therefore costs 5.65% of the sale price — on an $800,000 home that is $45,200 rather than the $40,000 the quote implies.
- Does TRESA set commission rates in Ontario?
- No. Under TRESA the rate, the split, the structure and even who pays are all negotiable. Discount, flat-fee and tiered models are all legal in Ontario.
- Is real estate commission negotiable in Ontario?
- 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 realtor commission on a $1,000,000 Toronto home?
- At 5%, commission on $1,000,000 is $50,000 before tax and $56,500 once 13% HST is added — an effective 5.65% of the sale price. Split evenly, $28,250 goes to each brokerage side including tax.
- Can I offer the buyer’s agent less than 2.5% in Ontario?
- Yes. The co-operating brokerage share is a term you set in the listing agreement, and 2.5% is convention rather than a rule. The trade-off is competitiveness: if similar listings offer more, yours may attract fewer buyer-agent showings. Discuss the local norm with your agent before deciding.
- What did TRESA change about commission in Ontario?
- TRESA replaced REBBA and changed how representation and disclosure work — including designated representation and the option of open offers — but it did not introduce a set commission rate. Rates, splits and structures remain fully negotiable, and must be documented in your written agreement.
- Is there an HST rebate on real estate commission in Ontario?
- No. The 13% HST on commission is not rebatable to a residential seller. The new-housing HST rebates that exist in Ontario apply to the purchase price of a newly built home, not to a brokerage fee.
- What is a flat-fee or mere-posting listing in Ontario?
- A service that lists your property on the MLS system for a set fee instead of a percentage, leaving showings and negotiation to you. It is fully legal in Ontario. Most sellers using it still offer commission to a buyer’s brokerage, so compare the flat fee plus the buyer-side offer against a conventional quote before deciding.
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