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Business Tax6 min readMar 17, 2026
Tax Guide for Real Estate Agents
Real estate agents have unique tax considerations. From commission income to car deductions, here's how to keep more of your earnings.
Tax Guide for Real Estate Agents
Employment Status
Most real estate agents are independent contractors (1099). You're responsible for all taxes.
Key Deductions for Real Estate Agents
Vehicle Expenses
One of your largest deductions. Track business mileage for:
- Showing properties
- Driving clients
- Visiting offices, title companies
- 2025 standard mileage rate: 67 cents/mile
Home Office
If you do administrative work from home with a dedicated space, you may qualify.
Marketing and Advertising
- Postcard campaigns, signage, online ads
- Website hosting and development
- Professional photography
Professional Fees
- MLS fees
- Real estate board dues
- License renewal fees
- E&O insurance
Phone and Technology
- Business use of cell phone
- CRM software, showing apps, virtual tour tools
Client Gifts
- $25 per recipient per year (business gifts)
Health Insurance
Deduct 100% of health insurance premiums for yourself and family.
Retirement Planning
SEP-IRA or Solo 401(k) to shelter commission income.
S-Corp Election
If you're consistently earning $80,000+ annually, an S-Corp election could save thousands in self-employment taxes.
Real estate agent ready to maximize your deductions? Schedule a consultation with our team.