If you are considering a career in real estate or already working as a self-employed agent, one of the first questions you probably ask is: What is the average realtor income?
It is an affair question, and the answer is not as simple as one number.
Average realtor income depends on location, experience, and sales volume. Market conditions, commission structure, expenses, and taxes all play a role in what agents actually take home.
In this article, we’ll break down:
- Realistic national income ranges,
- How realtors get paid,
- The biggest expenses that reduce a realtor’s income,
- Showcase how proper bookkeeping can significantly improve financial stability.
What is the average realtor’s income in the USA?
When people ask about the average income realtor, they are usually looking for a clear, realistic picture of what they can expect to earn on both a monthly and annual basis.
Unlike salaried jobs, real estate income is highly variable, which makes understanding income ranges far more useful than chasing a single average number.
Based on national labour statistics, brokerage surveys, and industry reports, here is a simplified overview of typical earnings across experience levels:
| Realtor type | Typical Annual income range |
| Part-time agent | $20,000-$45,000 |
| Full-time agent (1-3years) | $40,000-$75,000 |
| Established full-time agent | $75,000-$120,000+ |
| Top-producing agents | $150,000+ |
These ranges represent average real estate agent income, not guaranteed earnings.
They show what many agents achieve under normal market conditions, but individual results can vary widely depending on effort, location, and business strategy.
For example, part-time agents or low-income realtors often earn on the lower end of the spectrum because they close fewer transactions per year and typically work with smaller client pipelines.
A part-time agent closing just 3 to 5 deals annually may fall into the $20000 to $45000 range.
While a full-time agent closing 10 to 15 transactions can move into the $40000 to $75000 range even within their first few years.
As agents gain experience, build a referral network, and improve their negotiation and marketing skills, income growth becomes more predictable.
Established full-time realtors average income between $75000 and $120000 or more. Especially in the stable housing markets with consistent demand.
These agents often benefit from repeat clients, word-of-mouth referrals, and better commission splits with their brokerage.
At the top of the profession are high-performing agents who specialize in luxury properties, commercial real estate, or high-volume residential sales.
These top-producing real-estate agents of an exceed $150,000 annually, sometimes significantly.
However, reaching this level requires years of consistent efforts, strong systems, and disciplined monetary management.
It is also important to understand that these figures represent gross income before expenses and taxes.
Brokerage fees, marketing costs, transportation, licensing, and self-employment taxes all reduce actual take-home pay.
This is why tracking income and expenses carefully is essential for realtors who want to understand their true financial picture and grow their earnings sustainably over time.
How do realtors get paid?
One of the most important realities to understand about average realtor income is this:
Most realtors earn commission rather than a fixed salary.
This means income is directly tied to performance, market conditions, and the number of deals an agent closes.
There is no guaranteed pay cheque, which is why earnings can vary widely from month to month.
Here are a few common realtor income sources:
- Commission-based income
Real estate agents typically earn a percentage of the final home sale price.
In many markets, they fall around 2.5% to 3% per side of a transaction.
That commission is usually shared between two agents, the buyer’s agent and the seller’s agent.
And then divided between the agent and their brokerage. For example, if a home sells for 400,000 with a 6% commission, the amount of the full commission is 24000; that amount is split between the buyer’s agent and the seller’s agent, leaving 12000 on each side.
From there, the agent’s portion is divided again based on their agreement with their brokerage.
2. Brokers’ Splits and Fees
Most brokers take a portion of every commission that the agent earns. Common Commission splits include:
- 50/50- The brokerage keeps 50%, the agent keeps 50%
- 60/40- The agent keeps 60%, brokerage keep 40%,
- 70/30- The agent keeps 70%, brokerage keep 30%,
- 80/20- The agent keeps 80%, brokerage keep 20%,
Newer agents typically start with the lower splits and gradually earn higher splits as their production increases.
In addition to Commission splits, many brokerages charge ongoing fees that reduce real estate agents’ earnings. Such as:
- Monthly desk fees
- Transaction processing fees
- Marketing and branding fees
- Technology and CRM fees
These expenses can quietly take a significant portion of an agent’s gross commission.
This is why two agents closing the same number of deals can end up with a very different take-home income depending on their brokerage structure and expense management.
Understanding how commission and brokerage fees interact is essential for any realtor who wants to accurately estimate income and bills for long-term financial stability.
Factors that affect Realtor income
Several key factors explain why average reality income varies so widely.
- Location and market conditions
Agents in high-cost cities often close higher-value transactions that increase commissions. However, expenses also rise in competitive markets.
- Experience level
New agents take time to build pipelines, and referrals experience agents close more deals with less effort.
- Number of transactions
Increase is driven by volume, closing 2 deals per month that produce very different results, and closing one deal every 2 months.
- Niche Focus
Luxury commercial and investment real estate generally produces higher commissions than entry-level residential.
Beginner vs Experienced realtor income
Income in this field varies a lot. While the job often looks glamorous, most new agents don’t earn much at first and spend their first year learning the business and building connections.
First-year earnings are usually low. Many beginners make between $5,000 and $20,000, some reach $30,000- $40,000, and many barely break even after expenses. Also, business costs reduce the take-home pay.
But income improves with experience in this sector, by years 3-5, many full-time agents earn $70,000-$120,000+, with top performers making $150,000+. Top agents in the strong markets can even raise their income up to $500,000 or more per year once their business gains momentum.
On an industry-wide level, total real estate commission revenue in the U.S reached approximately $222.3 billion in 2022 and was shared among more than three million agents.
This means the average agent generated around $70,000 in gross income. However after all the business expenses and roughly 20-30% in taxes, the typical agent’s actual take-home pay falls closer to $45,000-$60,000 per year, or about $3,000-$3,500 per month.
Income distribution is extremely uneven, with the top 10 percents agents earning close to 90 percent of all commissions, while the remaining 90 percent of agents split the rest, leaving many earning nearly or below minimum wage after expenses.
Expenses that reduce a realtor’s take-home pay
Understanding realtor expenses and Taxes is critical because expenses significantly impact net income.
Common realtor expenses
- Brokerage splits and desk fees
- Marketing and advertising
- MLS dues and licence fees
- Transportation and fuel costs
- Phone CRM and transaction software
- Photography, staging, and open house costs
Without tracking many agents, they estimate how much this cost reduces their true earnings.
Realtors are self-employed real estate agents, meaning they have 1099 income and pay.
- Federal income tax
- State income tax
- Self-employment tax (15.3%)
- Quarterly tax planning
Since taxes are not withheld, agents need to pay quarterly estimated payments to avoid tax-related penalties in April.
How does Tabby help realtors manage their income?
While most agents focus on closing deals, many underestimate how much better financial tracking can improve their overall income stability. Without proper records, it becomes difficult to understand a true profitability plan for taxes or make confident business decisions.
This is exactly why I recommend Tabby to real estate professionals:
Tabby helps realtors track commissions and expenses easily.
What does Tabby do?
- Tracks commissions income in real time
Every Commission you earn is recorded as it comes in, giving you immediate clarity on how your income is performing. Instead of guessing how much you made this month or quarter, you always have an accurate picture in front of you.
- Categorizes Expenses for deduction
Tabby automatically organizes your business expenses into clear categories. Such as: marketing, transportation office cost, license in technology, and more. This makes it easy to identify directions and ensures you never miss a legitimate right that reduces taxable income
- Helps estimate quarterly taxes
Because a realtor’s income is irregular, quarterly tax planning becomes one of the biggest challenges. Tabby helps estimate upcoming tax obligations based on your real-time numbers, preventing and reducing the risk of underpayment penalties.
- Prepares reports for tax filing
When tax season arises, Tabby generates clean, easy-to-read financial reports that your accountant can use immediately. You don’t need to scramble through bank statements and spreadsheets; everything is already organized and ready.
- Forever offers a free plan for small earners:
For newer agents and those managing modest income levels, the free plan provides full access to essential bookkeeping tools at no cost.
Summary
Understanding average realtor income sets realistic expectations and helps you build a stable financial future, while commissions drive gross earnings, expenses, and taxes ultimately determine your net income.
With the right tracking system, you can grow your income, control expenses, and eliminate tax stress. Stay tax-ready all year with Tabby and simplify commission tracking with Tabby.
FAQs
1. What is the average realtor’s income in the USA ?
Typically between 40000 and 75000 for full-time agents, with top producers for more
2. Do realtors get paid a salary or commission?
Realtors primarily earn commission.
3. How much do beginner realtors make?
Most first-year agents earn $20,000-$40,000
4. How do taxes affect realtor income?
Self-employment tax and income tax significantly reduce net earnings without proper planning
