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HST & GST on real estate commission — Canadian calculator
A real estate commission is a taxable service, so GST/HST is charged on top of it. The rate follows the province the property is in — 13% HST in Ontario, 5% GST in Alberta and BC, 14% in Nova Scotia, 15% in the other Atlantic provinces, and GST plus QST in Quebec. Enter a sale price below to see the tax, the total the seller pays at closing and how it splits between the two brokerages.
HST payable on the commission
$5,200.00
Ontario · 13% on a commission of $40,000.00
- Sale price
- $800,000.00
- Commission
- $40,000.00
- HST @ 13%
- $5,200.00
- Total the seller pays
- $45,200.00
- Seller's proceeds
- $754,800.00
Proceeds are before mortgage payout, legal fees and closing adjustments.
Split between the two brokerages
Listing side
$20,000.00 + $2,600.00 HST
$22,600.00 invoiced
Co-operating side
$20,000.00 + $2,600.00 HST
$22,600.00 invoiced
Sales tax on commission, by province
Every province and territory, with what the tax costs on an $800,000 sale at a 5% total commission.
| Province / territory | Tax on commission | Rate | Tax on $800,000.00 @ 5% |
|---|---|---|---|
| Alberta | GST | 5% | $2,000.00 |
| British Columbia | GST | 5% | $2,000.00 |
| Manitoba | GST | 5% | $2,000.00 |
| New Brunswick | HST | 15% | $6,000.00 |
| Newfoundland and Labrador | HST | 15% | $6,000.00 |
| Nova Scotia | HST | 14% | $5,600.00 |
| Northwest Territories | GST | 5% | $2,000.00 |
| Nunavut | GST | 5% | $2,000.00 |
| Ontario | HST | 13% | $5,200.00 |
| Prince Edward Island | HST | 15% | $6,000.00 |
| Quebec | GST + QST | 14.975% | $5,990.00 |
| Saskatchewan | GST | 5% | $2,000.00 |
| Yukon | GST | 5% | $2,000.00 |
GST/HST, plus QST in Quebec. Provincial retail sales taxes (BC PST, SK PST, MB RST) are not charged on a real estate commission.
Who pays the HST on a real estate commission?
The seller pays it. Under a standard listing agreement the seller owes the commission, and the tax is charged on top, so both come out of the sale proceeds at closing. The listing brokerage then pays the co-operating (buyer's) brokerage its share out of that amount — which is why the calculator shows both sides.
Buyers do not normally pay commission or the tax on it, though the arrangement can differ where a buyer signs a representation agreement with its own fee.
Whether the seller can claim that tax back depends on the property. Someone selling a personal home is not carrying on a commercial activity, so there is no input tax credit. A GST/HST-registered seller disposing of a rental or commercial property generally can claim the tax on the commission as an input tax credit — which makes it worth getting the filing right.
Common questions
- Is there HST on real estate commission in Ontario?
- Yes. A real estate commission is a taxable service, so 13% HST is charged on top of the commission on an Ontario property. On an $800,000 sale at a 5% commission, that is $40,000 in commission plus $5,200 in HST.
- Who pays the HST on a real estate commission?
- The seller. Under a standard listing agreement the seller owes the commission, and the HST is charged on top of it, so both are deducted from the sale proceeds at closing. The listing brokerage then pays the co-operating brokerage its share out of that amount.
- Is there GST on real estate commission outside the HST provinces?
- Yes. In Alberta, British Columbia, Manitoba, Saskatchewan, Yukon, the Northwest Territories and Nunavut, 5% GST applies to the commission. In Quebec, 5% GST plus 9.975% QST applies. The rate follows where the property is located, not where the brokerage is registered.
- Do realtors have to charge tax on their commission?
- Once an agent's taxable revenue passes the $30,000 small-supplier threshold over four consecutive calendar quarters, they must register for GST/HST and charge it on their commission. Most working agents are past that threshold and are registered.
- Is HST charged on the sale price of the house as well?
- Not on a normal resale home — the sale of used residential housing is generally exempt, which is why buyers of resale homes do not pay HST on the purchase price. New construction and most commercial or rental property are different, and the commission is taxable either way.
- Can I claim the HST on the commission back?
- Only if the sale was part of a commercial activity. Someone selling a personal home cannot claim an input tax credit. A GST/HST-registered seller disposing of a rental or commercial property generally can claim the tax on the commission as an input tax credit on their return.
- How is the commission split between the two brokerages?
- A total commission is usually split between the listing brokerage and the co-operating (buyer's) brokerage — 50/50 is the common default in Ontario, though the listing agreement governs. Each brokerage invoices its own share plus the tax on that share, which is what the calculator's split shows.
Realtor or PREC? We file the HST so you don't have to.
SNF Accounting is a CPA-led firm doing bookkeeping, HST/GST filing and CRA-ready tax for Canadian real estate agents — including personal real estate corporations in Ontario. Fixed plans, no hourly billing.
Rates are the current GST/HST/QST rates and this tool is for general information — it is not tax advice, and it does not cover the separate question of GST/HST on the sale of the property itself. For a specific transaction, talk to us. Related reading: HST on real estate commission in Ontario · PREC accounting guide.