Real estate commission HST calculator — Ontario & all provinces, 2026

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.

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?

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.

Do you have to pay HST on realtor commissions?

Yes. A realtor's commission is a taxable service, so GST/HST is charged on top of it wherever the property is in Canada — 13% HST in Ontario, 5% GST in Alberta and British Columbia, and so on. It is not optional, and it is not included in the quoted commission rate unless the agreement says so.

How is commission taxed in Ontario?

On a typical Ontario deal the seller agrees a commission of around 4-5% of the sale price, and 13% HST is added on top of that commission. On a $600,000 sale at 5%, that is $30,000 in commission plus $3,900 in HST — $33,900 out of the sale proceeds at closing.

Should the commission quote include GST or HST?

Commission is normally quoted before tax, and the GST/HST is added on the invoice. Check the listing agreement: a rate quoted as "plus applicable taxes" means the tax comes on top, which is the usual wording.

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.