How Much Should Real Estate Agents Save for Taxes in Canada?
No tax is deducted from a commission before it is paid, so the tax on it is worked out later. This guide covers the CRA rules that apply, what Agent Runway's tax engine estimates by province, and a free tax estimator for your own numbers.
The short answer: it depends on province and income
The CRA sets income tax by bracket on taxable income for the year[2], not as a percentage of a commission. Agent Runway's tax engine estimates federal income tax, provincial income tax and CPP contributions (QPP in Quebec) on net business income for the year. The estimate moves with province and with net business income for the year, so no single percentage of a commission fits every agent. The figures below are for a sole proprietor. An agent who operates through a personal real estate corporation (PREC) is taxed differently.
| Net business income | Lowest estimate | Highest estimate |
|---|---|---|
| $50,000 | 20.9% (Nunavut) | 26.7% (Nova Scotia) |
| $100,000 | 26.1% (Nunavut) | 33.5% (Nova Scotia) |
| $150,000 | 28.1% (Nunavut) | 36.1% (Nova Scotia) |
| $200,000 | 30.2% (Nunavut) | 39.1% (Quebec) |
The engine counts self-employment income only, with the basic personal amounts and the CPP deduction and credit, and no other deductions or credits. Net business income is commission after the brokerage split and fees, less business expenses. This is an estimate based on CRA rules and engine calculations. Verify with your accountant or tax professional before making any filing or financial decision.
The engine's estimate has three parts. HST/GST is a fourth amount, separate from the estimate:
- Federal income tax — Progressive brackets from 14% to 33% for 2026[2]
- Provincial income tax — Each province and territory sets its own brackets and rates[2]
- CPP contributions — For the 2026 tax year, a self-employed agent pays both the employee and employer portions of CPP: 11.90% of net self-employment income between $3,500 and $74,600, plus 8.00% (CPP2) of income between $74,600 and $85,000.[1][9]
- HST/GST — Per CRA, GST/HST registration is required once revenue from worldwide taxable supplies, before expenses, is over $30,000 in a single calendar quarter or over the last four consecutive calendar quarters. At or under that limit a person is a small supplier and registration is optional.[3] Per CRA, the GST/HST rate to charge depends on the province or territory where the supply is made: 13% HST in Ontario, 14% HST in Nova Scotia, 15% HST in New Brunswick, Newfoundland and Labrador and Prince Edward Island, and 5% GST in the other provinces and territories.[4][8]
Why tax planning is harder for real estate agents
A salaried employee has income tax deducted from each pay. A self-employed agent's commission arrives with none deducted, so the tax on it is worked out and paid later. Per CRA, tax instalments may apply when income does not have enough tax withheld, as with self-employment income.[5]
Per CRA, income tax is paid by instalments for a year when net tax owing is more than $3,000 ($1,800 for Quebec residents) in that year and in either of the two years before it.[5] Per CRA, instalment payments for individuals are due March 15, June 15, September 15 and December 15.[6] Per CRA, instalment interest is charged on all late or insufficient instalment payments, compounded daily at the prescribed interest rate.[7] The free tax estimator produces a starting estimate from your own numbers. For a deeper look, see our full tax planning guide, learn what expenses you can deduct, or walk through the T2125 line by line.
Frequently asked questions
How much should a real estate agent save for taxes in Canada?
The CRA sets no percentage of a commission to save. Agent Runway's tax engine estimates federal income tax, provincial income tax and CPP contributions (QPP in Quebec) on net business income for the year. For the 2026 tax year, on $100,000 of net business income, the engine's estimate runs from 26.1% of that income in Nunavut to 33.5% in Nova Scotia. The estimate moves with province and with net business income for the year, so no single percentage of a commission fits every agent. HST/GST collected on commissions is separate from this estimate.
Do real estate agents in Canada pay CPP?
Yes. For the 2026 tax year, a self-employed agent pays both the employee and employer portions of CPP: 11.90% of net self-employment income between $3,500 and $74,600, plus 8.00% (CPP2) of income between $74,600 and $85,000.[1][9]
Do real estate agents charge HST or GST in Canada?
Per CRA, GST/HST registration is required once revenue from worldwide taxable supplies, before expenses, is over $30,000 in a single calendar quarter or over the last four consecutive calendar quarters. At or under that limit a person is a small supplier and registration is optional.[3] Per CRA, the GST/HST rate to charge depends on the province or territory where the supply is made: 13% HST in Ontario, 14% HST in Nova Scotia, 15% HST in New Brunswick, Newfoundland and Labrador and Prince Edward Island, and 5% GST in the other provinces and territories.[4][8]
How often do self-employed agents pay taxes in Canada?
Per CRA, income tax is paid by instalments for a year when net tax owing is more than $3,000 ($1,800 for Quebec residents) in that year and in either of the two years before it.[5] Per CRA, instalment payments for individuals are due March 15, June 15, September 15 and December 15.[6] Per CRA, instalment interest is charged on all late or insufficient instalment payments, compounded daily at the prescribed interest rate.[7] HST/GST is typically filed annually or quarterly depending on revenue.
Sources
- [1]CRA — CPP contribution rates, maximums and exemptions
- [2]CRA — Canadian income tax rates for individuals
- [3]CRA — When to register for and start charging the GST/HST
- [4]CRA — GST/HST: charge and collect the tax — which rate to charge
- [5]CRA — Required tax instalments: who has to pay
- [6]CRA — Required tax instalments: due dates
- [7]CRA: Required tax instalments for individuals, interest and penalty charges
- [8]CRA: GST/HST calculator (and rates)
- [9]CRA: Second additional CPP contribution (CPP2) rates and maximums
Disclaimer: This guide and the linked estimator provide information for educational purposes only and do not constitute tax, legal, or financial advice. Tax obligations vary based on individual circumstances. Consult a qualified accountant or tax professional for advice specific to your situation. Agent Runway assumes no liability for tax-related decisions.
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