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How do real estate agent taxes, write-offs and retirement savings work?

Updated October 2026. Figures as of September 2026.

In the US, an agent paid on sales under a written contract saying they aren't an employee is self-employed: 15.3% self-employment tax on 92.35% of net earnings plus income tax, paid in estimates during the year (IRS, February, April, June and September 2026). In Canada, a self-employed agent pays both shares of the CPP, 5.95% each on earnings from C$3,500 to C$74,600 for 2026, and instalments when net tax owing tops C$3,000 (C$1,800 in Quebec) this year and in 2025 or 2024 (CRA, October 2025 and January 2026).

Deductible costs and retirement contributions are the main ways to keep more. Keep is where we answer this year's money questions for real estate entrepreneurs, starting with a worked example, in US$ and C$, of what an agent keeps after tax at three profit levels.

Your own situation decides the real figures, and a CPA (US) or an accountant (Canada) can confirm them.

What can I write off?

In the US, a business expense is deductible when it is both ordinary and necessary in your field (IRS Publication 334, April 2026). For your car, the IRS standard mileage rate for business is 72.5 US cents a mile from January to June 2026 and 76 US cents from July 1 to December 31, 2026 (IRS, July 2026). A home office deduction needs space you use regularly and exclusively for the business, and the simplified method allows US$5 per square foot, up to 300 square feet (IRS, March 2026).

In Canada, you can deduct any reasonable current expense you incur to earn income, but not personal expenses, and you can claim at most 50% of food, beverage and entertainment costs (CRA guide T4002, April 2026).

The worked tax example shows what a deductible cost saves at its middle profit level in each country.

When do I pay the tax?

In the US, you generally must make estimated payments for 2026 if you expect to owe at least US$1,000 after withholding and credits, usually by April 15, June 15, September 15 and January 15 of the next year (IRS Publication 505, April 2026).

In Canada, you pay instalments for 2026 if your net tax owing is more than C$3,000 (C$1,800 in Quebec) this year and in 2025 or 2024, due March 15, June 15, September 15 and December 15 (CRA, January 2026). Once your taxable supplies pass C$30,000 in a single calendar quarter or over four consecutive calendar quarters, you must register for the GST/HST, and a registered agent charges it on commission (CRA, June 2026).

Where does retirement fit?

Retirement contributions are the other big deduction. A self-employed US agent can use a SEP IRA or a solo 401(k), both capped at US$72,000 for 2026 (IRS, November 2025); a solo 401(k) reaches that cap at about US$252,000 of profit for an owner under 50, and a SEP at about US$376,000 (our arithmetic using IRS Publication 560's method and the 2026 Social Security wage base, April and September 2026). A Canadian agent gets new RRSP room of 18% of last year's earned income, up to C$33,810 for 2026, on top of any unused room and less any pension adjustment (CRA, December 2025 and January 2026). The full rules are on How do real estate agents save for retirement without a 401(k)?

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Common questions

What is the 2026 mileage rate for real estate agents?
The IRS standard mileage rate for business use is 72.5 US cents a mile from January 1 to June 30, 2026, and 76 US cents a mile from July 1 to December 31, 2026 (IRS, July 2026). It applies to self-employed people, including real estate agents, who use their car for business.
Do real estate agents have to pay quarterly taxes?
In the US, usually. You generally must make estimated payments for 2026 if you expect to owe at least US$1,000 after withholding and credits (IRS Publication 505, April 2026). In Canada, you pay instalments if your net tax owing is more than C$3,000 (C$1,800 in Quebec) in 2026 and in 2025 or 2024 (CRA, January 2026).

Sources

  1. IRS, Licensed real estate agents - Real estate tax tips, February 2026
  2. IRS, Self-employment tax (Social Security and Medicare taxes), June 2026
  3. IRS, Topic no. 554, Self-employment tax, September 2026
  4. IRS, Topic no. 751, Social Security and Medicare withholding rates, September 2026
  5. IRS, Publication 505 (2026), Tax Withholding and Estimated Tax, April 2026
  6. IRS, Publication 334 (2025), Tax Guide for Small Business, April 2026
  7. IRS, Standard mileage rates, July 2026
  8. IRS, Simplified option for home office deduction, March 2026
  9. IRS, 401(k) limit increases to $24,500 for 2026, IRA limit increases to $7,500, November 2025
  10. IRS, Notice 2025-67, 2026 Amounts Relating to Retirement Plans and IRAs, as Adjusted for Changes in Cost-of-Living, November 2025
  11. IRS, Publication 560 (2025), Retirement Plans for Small Business, April 2026
  12. Canada Revenue Agency, CPP contribution rates, maximums and exemptions, October 2025
  13. Canada Revenue Agency, Who has to pay - Required tax instalments for individuals, January 2026
  14. Canada Revenue Agency, Payment due dates - Required tax instalments for individuals, January 2026
  15. Canada Revenue Agency, When to register for and start charging the GST/HST, June 2026
  16. Canada Revenue Agency, GST/HST in special cases, June 2026
  17. Canada Revenue Agency, Self-employed Business, Professional, Commission, Farming, and Fishing Income: Chapter 3, April 2026
  18. Canada Revenue Agency, MP, DB, RRSP, DPSP, ALDA, TFSA limits, YMPE and the YAMPE, December 2025
  19. Canada Revenue Agency, How contributions affect your RRSP deduction limit, January 2026

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