Real Estate Commission Calculator

Realtor Commission in Canada: Splits, Taxes, and Negotiation

Canadian residential real estate commission is paid by the seller from the sale proceeds and is almost always quoted as a percentage of the final sale price. The traditional structure is 5% split equally between the buyer’s agent (2.5%) and the seller’s listing agent (2.5%), although a 2024 antitrust settlement and broader transparency rules from the Canadian Real Estate Association (CREA) have pushed more variation. In Toronto and Vancouver markets, a common split is 2.5% + 2.5% (5% total), while in some Alberta and Saskatchewan markets, 7% on the first $100,000 plus 3% on the balance is still seen. Commission is fully negotiable — CREA and provincial regulators prohibit any fixed industry rate.

GST or HST applies on top of the agreed commission. In Ontario, a $700,000 sale at 5% commission costs $35,000 in commission plus $4,550 in HST, for a total of $39,550 — or 5.65% of the sale price. In a 15% HST province like Nova Scotia’s replacement, that same sale costs $40,250 (5.75% effective). In GST-only provinces like Alberta and BC, the total drops to $36,750 (5.25%). Quebec applies 5% GST plus 9.975% QST, totalling 14.975% on top of commission.

Total Commission Cost on $700,000 Sale (5% Commission)

To reduce commission costs, sellers have three primary options: negotiate with a traditional full-service brokerage (1–2% off the standard rate is common in slow markets), use a discount or flat-fee brokerage like ComFree, Bode, or Purplebricks, or list via mere posting on the MLS while still offering a competitive buyer’s agent commission (most buyers shop through agents, and a low buyer commission risks reducing showings). At a $700,000 sale price, switching from a 5% full-service listing to a 1.5% flat-fee listing service can save more than $20,000 in pre-tax commission. Always verify what services are included — professional photography, MLS exposure, negotiation, lockbox, and offer review are standard in full-service contracts but may be add-ons or excluded entirely in discount packages.