In brief
In Canada, the average commission paid to a real estate agent is about 2.04% of the sale price per agent — roughly 4.09% in total for the seller, since the commission is generally split between the listing agent and the buyer's agent (rate-my-agent 2026 study, 979 verified transactions 2018-2026). It ranges from 1.78% per agent in British Columbia to 2.83% in Newfoundland. No official schedule exists anywhere: the commission is negotiable, and tiered structures (e.g., 7% on the first $100,000, 3% on the rest) are common in the West.
Why we can talk about this frankly
Payotte earns no referral commission, no listing fees and no advertising from brokers. We gain nothing whether commissions are high or low — so this dossier can state the figures as observed, sources attached.
What is the typical real estate agent commission by province?
On average 2.04% per agent in Canada, from 1.78% in British Columbia to 2.83% in Newfoundland and Labrador (rate-my-agent 2026 study). Average percentages paid PER AGENT, measured on 979 verified transactions (2018-2026, rate-my-agent 2026 study). The seller generally pays both sides — 4.09% on average in Canada. Territories and P.E.I. excluded: the source itself flags them as estimates.
| Province | Average % per agent | Typical seller bill (×2 sides) |
|---|---|---|
| Ontario | 2.16% | ≈ 4.3% |
| Quebec | 1.87% | ≈ 3.7% |
| British Columbia | 1.78% | ≈ 3.6% |
| Alberta | 2.03% | ≈ 4.1% |
| Manitoba | 1.98% | ≈ 4% |
| Saskatchewan | 2.2% | ≈ 4.4% |
| Nova Scotia | 2.2% | ≈ 4.4% |
| New Brunswick | 2.41% | ≈ 4.8% |
| Newfoundland and Labrador | 2.83% | ≈ 5.7% |
| Canada (average) | 2.04% | 4.09% |
The "×2" is an arithmetic approximation: each side's share varies by agreement (the listing agent offers a share to the cooperating agent). Descriptive averages, not a schedule — every brokerage contract freely sets its rate.
Who pays — and who really pays
Contractually, the seller pays the whole commission, deducted from the sale proceeds at the notary's or lawyer's office: they compensate their listing agent, who shares with the buyer's agent. The buyer signs no commission cheque — but economists note it is effectively baked into the sale price: everyone finances it a little.
Concretely, on a $500,000 sale at 4.09% total, the commission approaches $20,000 plus taxes — often the second-largest expense of a sale after the mortgage payoff. Our net-proceeds calculator runs the full math with your numbers.
Everything is negotiable — really
No province imposes a schedule: "there is no standard commission rate" (WOWA, 2026), and the averages above hide real spreads — the rate-my-agent study observes commissions from under 1% to over 3.5% per agent depending on the file. Tiered structures are common in the West (typically 7% on the first $100,000 then 3% on the rest in Alberta); flat percentages more common in the East.
Classic negotiation levers: an easy-to-sell property in a seller's market, a double mandate (you sell AND buy with the same agent), a high price (the % can drop as the base rises), or modular services. Negotiating the rate is legitimate — but also compare what each agent does for that rate: marketing, photos, buyer pre-qualification, negotiation. The cheapest is not always the best net.
Is the commission taxable? GST, HST and QST
Yes: a GST/HST-registered agent's commission is generally taxable, even when the sale of the home itself is exempt (CRA, "GST/HST in special cases"). Added on top: 5% GST (Alberta, British Columbia, Manitoba, Saskatchewan, the territories), 13% HST in Ontario, 14% in Nova Scotia (since April 1, 2025) and 15% in New Brunswick, Newfoundland and Labrador and Prince Edward Island, and in Quebec 5% GST plus 9.975% QST (CRA rates checked November 4, 2026).
Worked example on a $500,000 sale at the Canadian average of 4.09%: a commission of $20,450, plus $2,659 of HST in Ontario (total $23,109), plus $3,062 of GST and QST in Quebec (total $23,512), plus $1,023 of GST in Alberta (total $21,473). The tax applies to the commission, not to the price of the home.
What the law regulates: Ontario, British Columbia, Quebec
No provincial law sets the commission rate; they regulate its FORM and its disclosure (rules checked against the official texts on November 4, 2026).
Ontario. The Trust in Real Estate Services Act, 2002 (TRESA, formerly the Real Estate and Business Brokers Act, 2002) requires remuneration to be an agreed amount, a percentage of the price, or a combination of both (s. 36(1)). A percentage may be tiered, decreasing as the price rises (s. 36(2)). Paying the agent on the difference between the listing price and the sale price is prohibited (s. 36(3)).
British Columbia. BCFSA, the regulator, answers "no" to whether there is a standard commission: any amount is negotiated between the client, the agent and the brokerage. The agent must disclose in writing any remuneration received from a third party (for example a referral fee) and, when representing the buyer, how much they will receive from the seller's side. A commission based on the difference between the list price and the price finally paid is prohibited.
Quebec. For a mainly residential building with fewer than five dwellings, the brokerage contract must be in writing on the OACIQ's mandatory form, and a verbal contract is null (Real Estate Brokerage Act, ss. 23-26). The client may cancel the contract within 3 days after receiving the signed copy; the broker may then claim no remuneration, with one exception (ss. 28-29). See also cooling-off periods by province.
Does the US NAR settlement change commissions in Canada?
Not directly: the National Association of Realtors settlement targets the US market and does not bind Canadian agents. In Canada, the question is being examined separately by the Competition Bureau: on February 20, 2026, it extended to Greater Vancouver REALTORS® its investigation of CREA rules that require the seller's agent to offer compensation to the buyer's agent on an MLS listing. The Bureau states that the investigation is ongoing and that there is no conclusion of wrongdoing (release checked November 4, 2026).
Commission and choosing your agent
The commission is a criterion — not THE criterion. An agent who sells 3% above market is worth more than a 0.5-point commission discount. Our guide "Choosing a real-estate broker" details the criteria that matter (verified reviews, local presence, experience), and every Payotte profile publishes that data for your sector's verified agent.
To compare on the record, see the real estate agent Payotte selected in Montreal, Quebec City, Toronto, Vancouver, Calgary and Ottawa: reviews, experience and licence are published there, criterion by criterion.
Frequently asked questions
What percentage is a real estate agent's commission?
In Canada, the average commission paid to a real estate agent is about 2.04% of the sale price per agent — roughly 4.09% in total for the seller, since the commission is generally split between the listing agent and the buyer's agent (rate-my-agent 2026 study, 979 verified transactions 2018-2026). It ranges from 1.78% per agent in British Columbia to 2.83% in Newfoundland. No official schedule exists anywhere: the commission is negotiable, and tiered structures (e.g., 7% on the first $100,000, 3% on the rest) are common in the West.
What is the real estate commission in Ontario?
On average 2.16% of the sale price per agent in Ontario (rate-my-agent 2026 study) — typically around 4.3% in total for the seller, split between the listing agent and the buyer's agent. No schedule is imposed: the rate is freely negotiated in the listing agreement.
How much is the commission on a $500,000 house?
About $20,450 plus taxes at the Canadian average of 4.09% in total, or $10,200 per agent (rate-my-agent 2026 study). It is an average, not a schedule: the rate is negotiated in the listing agreement.
Who pays the commission: the buyer or the seller?
The seller, contractually: the commission is deducted from the sale proceeds and shared between the two agents. The buyer does not pay it directly — but it is economically baked into the sale price.
Can you negotiate the commission?
Yes, everywhere in Canada — no province imposes a rate. Observed spreads run from under 1% to over 3.5% per agent depending on the file. Negotiate the rate, but also compare the included services: marketing, photography, showings, negotiation.
Why is the commission lower in B.C. and higher in Newfoundland?
The percentage roughly tracks the inverse of prices: in British Columbia (1.78% per agent), high prices make a small % already very lucrative; in Newfoundland (2.83%), lower prices require a higher % for the same work. It is the same mechanism as the West's tiered structures.
Sources
- rate-my-agent — 2026 Commission Study (979 verified transactions, 2018-2026; % by province; page opened July 27, 2026)
- WOWA — Alberta Real Estate Commission Calculator 2026 ("no standard commission rate"; 7%/3% structure)
- Ontario — Trust in Real Estate Services Act, 2002, s. 36 (e-Laws)
- BCFSA — Consumer Guide to Remuneration (negotiable commission, disclosure)
- LégisQuébec — Real Estate Brokerage Act, ss. 23-29 (written contract, 3-day cancellation; in French)
- CRA — GST/HST calculator and rates by province (NS 14% since April 1, 2025)
- CRA — GST/HST in special cases, "Real estate agents (services)" (commission generally taxable)
- Competition Bureau — investigation extended to Greater Vancouver REALTORS® (February 20, 2026)
The figure, city by city
The percentage above applied to each city’s actual reference price. 74 cities — the calculation is published on every page.
- Real Estate Broker — AbbotsfordOn Abbotsford's reference price ($702,800), a 3.56% commission comes to roughly $25,020, plus tax.
- Real Estate Broker — AirdrieOn Airdrie's reference price ($505,800), a 4.06% commission comes to roughly $20,535, plus tax.
- Real Estate Broker — Baie-ComeauOn Baie-Comeau's reference price ($256,000), a 3.74% commission comes to roughly $9,574, plus tax.
- Real Estate Broker — BarrieOn Barrie's reference price ($706,668), a 4.32% commission comes to roughly $30,528, plus tax.
- Real Estate Broker — BlainvilleOn Blainville's reference price ($835,000), a 3.74% commission comes to roughly $31,229, plus tax.
- Real Estate Broker — BouchervilleOn Boucherville's reference price ($838,750), a 3.74% commission comes to roughly $31,369, plus tax.
- Real Estate Broker — BramptonOn Brampton's reference price ($827,000), a 4.32% commission comes to roughly $35,726, plus tax.
- Real Estate Broker — BrantfordOn Brantford's reference price ($610,000), a 4.32% commission comes to roughly $26,352, plus tax.
- Real Estate Broker — BrossardOn Brossard's reference price ($739,500), a 3.74% commission comes to roughly $27,657, plus tax.
- Real Estate Broker — BurlingtonOn Burlington's reference price ($850,800), a 4.32% commission comes to roughly $36,755, plus tax.
- Real Estate Broker — CalgaryOn Calgary's reference price ($564,200), a 4.06% commission comes to roughly $22,907, plus tax.
- Real Estate Broker — CoquitlamOn Coquitlam's reference price ($957,500), a 3.56% commission comes to roughly $34,087, plus tax.
- Real Estate Broker — DrummondvilleOn Drummondville's reference price ($450,000), a 3.74% commission comes to roughly $16,830, plus tax.
- Real Estate Broker — EdmontonOn Edmonton's reference price ($417,200), a 4.06% commission comes to roughly $16,938, plus tax.
- Real Estate Broker — Fort McMurrayOn Fort McMurray's reference price ($347,335), a 4.06% commission comes to roughly $14,102, plus tax.
- Real Estate Broker — FrederictonOn Fredericton's reference price ($368,400), a 4.82% commission comes to roughly $17,757, plus tax.
- Real Estate Broker — GaspéOn Gaspé's reference price ($275,000), a 3.74% commission comes to roughly $10,285, plus tax.
- Real Estate Broker — GatineauOn Gatineau's reference price ($523,500), a 3.74% commission comes to roughly $19,579, plus tax.
- Real Estate Broker — GranbyOn Granby's reference price ($480,000), a 3.74% commission comes to roughly $17,952, plus tax.
- Real Estate Broker — Grande PrairieOn Grande Prairie's reference price ($381,758), a 4.06% commission comes to roughly $15,499, plus tax.
- Real Estate Broker — Greater SudburyOn Greater Sudbury's reference price ($498,000), a 4.32% commission comes to roughly $21,514, plus tax.
- Real Estate Broker — HalifaxOn Halifax's reference price ($557,300), a 4.4% commission comes to roughly $24,521, plus tax.
- Real Estate Broker — HamiltonOn Hamilton's reference price ($728,900), a 4.32% commission comes to roughly $31,488, plus tax.
- Real Estate Broker — KamloopsOn Kamloops's reference price ($651,800), a 3.56% commission comes to roughly $23,204, plus tax.
- Real Estate Broker — KelownaOn Kelowna's reference price ($1,056,700), a 3.56% commission comes to roughly $37,619, plus tax.
- Real Estate Broker — KingstonOn Kingston's reference price ($542,800), a 4.32% commission comes to roughly $23,449, plus tax.
- Real Estate Broker — KitchenerOn Kitchener's reference price ($628,300), a 4.32% commission comes to roughly $27,143, plus tax.
- Real Estate Broker — LavalOn Laval's reference price ($641,000), a 3.74% commission comes to roughly $23,973, plus tax.
- Real Estate Broker — LethbridgeOn Lethbridge's reference price ($424,653), a 4.06% commission comes to roughly $17,241, plus tax.
- Real Estate Broker — LondonOn London's reference price ($538,000), a 4.32% commission comes to roughly $23,242, plus tax.
- Real Estate Broker — LongueuilOn Longueuil's reference price ($540,000), a 3.74% commission comes to roughly $20,196, plus tax.
- Real Estate Broker — MarkhamOn Markham's reference price ($1,037,300), a 4.32% commission comes to roughly $44,811, plus tax.
- Real Estate Broker — Medicine HatOn Medicine Hat's reference price ($404,979), a 4.06% commission comes to roughly $16,442, plus tax.
- Real Estate Broker — MississaugaOn Mississauga's reference price ($860,100), a 4.32% commission comes to roughly $37,156, plus tax.
- Real Estate Broker — MonctonOn Moncton's reference price ($418,300), a 4.82% commission comes to roughly $20,162, plus tax.
- Real Estate Broker — MontréalOn Montréal's reference price ($640,000), a 3.74% commission comes to roughly $23,936, plus tax.
- Real Estate Broker — Moose JawOn Moose Jaw's reference price ($282,400), a 4.4% commission comes to roughly $12,426, plus tax.
- Real Estate Broker — NanaimoOn Nanaimo's reference price ($789,100), a 3.56% commission comes to roughly $28,092, plus tax.
- Real Estate Broker — OakvilleOn Oakville's reference price ($1,044,000), a 4.32% commission comes to roughly $45,101, plus tax.
- Real Estate Broker — OshawaOn Oshawa's reference price ($694,400), a 4.32% commission comes to roughly $29,998, plus tax.
- Real Estate Broker — OttawaOn Ottawa's reference price ($616,900), a 4.32% commission comes to roughly $26,650, plus tax.
- Real Estate Broker — Prince AlbertOn Prince Albert's reference price ($285,500), a 4.4% commission comes to roughly $12,562, plus tax.
- Real Estate Broker — Prince GeorgeOn Prince George's reference price ($539,144), a 3.56% commission comes to roughly $19,194, plus tax.
- Real Estate Broker — QuébecOn Québec's reference price ($468,500), a 3.74% commission comes to roughly $17,522, plus tax.
- Real Estate Broker — Red DeerOn Red Deer's reference price ($435,425), a 4.06% commission comes to roughly $17,678, plus tax.
- Real Estate Broker — ReginaOn Regina's reference price ($341,200), a 4.4% commission comes to roughly $15,013, plus tax.
- Real Estate Broker — RepentignyOn Repentigny's reference price ($598,000), a 3.74% commission comes to roughly $22,365, plus tax.
- Real Estate Broker — RichmondOn Richmond's reference price ($998,300), a 3.56% commission comes to roughly $35,539, plus tax.
- Real Estate Broker — Richmond HillOn Richmond Hill's reference price ($1,145,900), a 4.32% commission comes to roughly $49,503, plus tax.
- Real Estate Broker — RimouskiOn Rimouski's reference price ($395,250), a 3.74% commission comes to roughly $14,782, plus tax.
- Real Estate Broker — Rouyn-NorandaOn Rouyn-Noranda's reference price ($330,000), a 3.74% commission comes to roughly $12,342, plus tax.
- Real Estate Broker — SaguenayOn Saguenay's reference price ($365,500), a 3.74% commission comes to roughly $13,670, plus tax.
- Real Estate Broker — Saint JohnOn Saint John's reference price ($354,500), a 4.82% commission comes to roughly $17,087, plus tax.
- Real Estate Broker — Saint-EustacheOn Saint-Eustache's reference price ($598,250), a 3.74% commission comes to roughly $22,375, plus tax.
- Real Estate Broker — Saint-Jean-sur-RichelieuOn Saint-Jean-sur-Richelieu's reference price ($590,000), a 3.74% commission comes to roughly $22,066, plus tax.
- Real Estate Broker — Saint-JérômeOn Saint-Jérôme's reference price ($540,000), a 3.74% commission comes to roughly $20,196, plus tax.
- Real Estate Broker — Sainte-JulieOn Sainte-Julie's reference price ($690,000), a 3.74% commission comes to roughly $25,806, plus tax.
- Real Estate Broker — SaskatoonOn Saskatoon's reference price ($431,700), a 4.4% commission comes to roughly $18,995, plus tax.
- Real Estate Broker — Sept-ÎlesOn Sept-Îles's reference price ($256,000), a 3.74% commission comes to roughly $9,574, plus tax.
- Real Estate Broker — SherbrookeOn Sherbrooke's reference price ($490,750), a 3.74% commission comes to roughly $18,354, plus tax.
- Real Estate Broker — St. CatharinesOn St. Catharines's reference price ($528,500), a 4.32% commission comes to roughly $22,831, plus tax.
- Real Estate Broker — St. John'sOn St. John's's reference price ($421,800), a 5.66% commission comes to roughly $23,874, plus tax.
- Real Estate Broker — SurreyOn Surrey's reference price ($860,000), a 3.56% commission comes to roughly $30,616, plus tax.
- Real Estate Broker — Swift CurrentOn Swift Current's reference price ($296,900), a 4.4% commission comes to roughly $13,064, plus tax.
- Real Estate Broker — TerrebonneOn Terrebonne's reference price ($632,500), a 3.74% commission comes to roughly $23,656, plus tax.
- Real Estate Broker — Thunder BayOn Thunder Bay's reference price ($395,000), a 4.32% commission comes to roughly $17,064, plus tax.
- Real Estate Broker — TorontoOn Toronto's reference price ($908,800), a 4.32% commission comes to roughly $39,260, plus tax.
- Real Estate Broker — Trois-RivièresOn Trois-Rivières's reference price ($395,000), a 3.74% commission comes to roughly $14,773, plus tax.
- Real Estate Broker — VancouverOn Vancouver's reference price ($1,068,600), a 3.56% commission comes to roughly $38,042, plus tax.
- Real Estate Broker — VaughanOn Vaughan's reference price ($1,106,600), a 4.32% commission comes to roughly $47,805, plus tax.
- Real Estate Broker — VictoriaOn Victoria's reference price ($1,288,600), a 3.56% commission comes to roughly $45,874, plus tax.
- Real Estate Broker — WaterlooOn Waterloo's reference price ($630,200), a 4.32% commission comes to roughly $27,225, plus tax.
- Real Estate Broker — WindsorOn Windsor's reference price ($570,000), a 4.32% commission comes to roughly $24,624, plus tax.
- Real Estate Broker — WinnipegOn Winnipeg's reference price ($403,200), a 3.96% commission comes to roughly $15,967, plus tax.
Related reading — our data dossiers
- Short-term rental rules
- Joint tenancy vs tenancy in common
- Credit score to buy a house
- Home inspection checklist
- Rent increase 2026 (Ontario, Quebec)
- Mortgage rates in Canada today
- Canada policy rate
- 2026-2027 forecasts: will prices drop?
- What income do you need to buy?
- Average rent by city (CMHC)
- Quebec real estate prices
- Ontario real estate prices
- Alberta real estate prices
- British Columbia real estate prices
- Saskatchewan real estate prices
- Manitoba real estate prices
- Nova Scotia real estate prices
- New Brunswick real estate prices
- Rent or buy? The monthly gap by city
- How long to sell? City by city
- Land transfer tax, city by city
- 25 vs 30-year amortization: the real cost
- Sell with an agent or sell yourself?
- Quebec notary fees
- GST/HST on a new home, by province
- Title insurance: cost and coverage
- How much does a home appraisal cost?
- Condo status certificate: price by province
- Mortgage discharge fees
- Cancelling an accepted offer: the deadlines by province
- New home warranty, province by province
- Foreign buyers: the ban and the taxes
- Who owns that property? The title search
- Surveys and the certificat de localisation
- Real-estate market statistics
- Notary or lawyer? Province by province
- Lawyer and notary fees, by province
- Inspection vs appraisal: the difference
- Who pays what: buyer vs seller
- Mortgage pre-approval, without the myths
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