How Much Should Real Estate Agents Save for Taxes in Canada?
Most agents know they should be setting money aside. Few know exactly how much. Use the calculator below to estimate your federal tax, provincial tax, CPP, and HST/GST obligations — based on your GCI, province, and brokerage split.
Most Canadian real estate agents should set aside 25–40% of their commission for taxes. Use the calculator below to refine your number.
Tax Set-Aside Calculator
Estimate based on 2025 Canadian tax brackets
You should be setting aside approximately:
$5,611 /mo
32.1% effective tax rate on $145,000 net business income
Includes $20,800/yr HST/GST remittance
If you're not consistently setting this aside, you're likely underestimating your tax liability — and that gap compounds quickly.
Total Annual Tax
$67,335
Set Aside Per Deal
$5,611
Estimated Net Income
$98,465
View full breakdown
This is a simplified estimate. It does not account for RRSP contributions, other tax credits, PREC/corporate structures, or ITCs on HST/GST. For real-time tracking tailored to your business, try Agent Runway.
The short answer: 25% to 40%
For most Canadian real estate agents earning between $80,000 and $300,000 in gross commission income, the total tax set-aside lands between 25% and 40% of net business income. That range depends on your province, your brokerage split, your deductible expenses, and whether you operate through a personal corporation (PREC).
The breakdown typically includes four components:
- Federal income tax — Progressive brackets from 15% to 33% on net self-employment income
- Provincial income tax — Varies by province, from ~4% (Nunavut) to ~21% (Nova Scotia) at the highest marginal rates
- CPP contributions — Self-employed agents pay both employee and employer portions: 11.9% on income between $3,500 and $71,300 (2025), plus CPP2 up to $79,400
- HST/GST — If you gross over $30,000 per year, you must register and collect HST/GST. In Ontario that's 13%; in the Maritimes, 15%
Why tax planning is harder for real estate agents
Salaried employees have taxes deducted at source. Real estate agents don't. Every commission cheque arrives as gross income with no deductions — and the CRA expects you to manage your own instalments, track your own expenses, and calculate your own obligations.
This creates a common pattern: agents spend commission income as it arrives, underestimate their tax liability, and face a painful bill at filing time. The CRA may also charge interest on missed quarterly instalments — even if you eventually pay the full amount.
The fix is straightforward but requires discipline: know your estimated rate, set aside that percentage from every cheque, and pay your quarterly instalments on time. The calculator above gives you a starting point. For continuous, real-time tracking, read our full Canadian tax planning guide.
Frequently asked questions
How much should a real estate agent save for taxes in Canada?
Most Canadian real estate agents should save between 25% and 40% of their net business income for taxes. This covers federal income tax, provincial income tax, CPP contributions, and HST/GST remittances. The exact percentage depends on your province, total income, and deductible expenses.
Do real estate agents in Canada pay CPP?
Yes. Self-employed real estate agents pay both the employee and employer portions of CPP — a combined rate of 11.9% on net self-employment income between $3,500 and $71,300 (2025 figures), plus CPP2 on earnings up to $79,400.
Do real estate agents charge HST or GST in Canada?
If a real estate agent earns more than $30,000 in gross revenue over four consecutive calendar quarters, they must register for and collect HST/GST. In HST provinces like Ontario (13%) or the Maritimes (15%), this is a significant additional obligation.
How often do self-employed agents pay taxes in Canada?
The CRA requires quarterly instalment payments (March 15, June 15, September 15, December 15) if you owe more than $3,000 in net tax. HST/GST is typically filed annually or quarterly depending on revenue. Missing instalments can result in interest charges.
Disclaimer: This calculator provides estimates for educational purposes only and does 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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