Take a $950,000 sale with 2.5% going to the listing agent and 2.5% to the buyer agent. The commission is $47,500 before tax. Ontario’s 13% HST adds $6,175, for a total of $53,675. That works out to 5.65% of the price and leaves $896,325 before the mortgage is paid off.
Who pays and how it splits
The seller pays, and the money comes out of the sale price at closing. It is divided between the agent who lists the home and the agent who brings the buyer. Percentages are negotiable. No rate is set by law.
Typical rates
Many Ontario sales use a total near 5%, split evenly between both sides. Some agents charge less on a higher-priced home, or a lower rate if they act for both sides. Others sell a flat fee package. Enter the percentage your agreement states.
Sales tax on the fee
GST or HST applies to the commission. At Ontario’s 13%, a 5% commission becomes an effective 5.65% of the price. Provinces with GST only charge 5%. Pick your province and the calculator adds the right tax.
Flat fees and extras
A brokerage may charge a flat fee for the listing plus a lower buyer commission. Some add a marketing package for photos or staging. The flat fee box covers those. Check the agreement to see whether signs and open houses are included in the fee.
Comparing other rates
Under the result, a table shows the total cost at rates from 4% to 6%. On this price each half point costs about $5,400 with tax. It’s handy in a negotiation, along with a question about which services change between a lower and a higher rate.
Questions for an agent
Ask how they set the price, how they will market the home and what happens if it does not sell. Ask how long the agreement runs and whether a fee applies if you cancel. Get every term in writing before you sign.
Toronto and Ontario sellers
In a hot market some Toronto agents offer a lower percentage on a quick sale, while in a slow one they may hold firm. Condos often sell for less, so a flat portion weighs more. Ask at least three agents for quotes and compare services as well as the rate.
Reading the listing agreement
The document sets the commission, the contract length and how it can end. A holdover clause may apply after it expires. Look closely at the buyer commission line, since it comes out of your proceeds. A lawyer can explain any term that is unclear.
A buyer without an agent
When the buyer has no agent, the seller may not owe a buyer commission, though the listing agreement can still name a fee. Ask the agent beforehand how such a sale is handled. Sometimes the seller keeps the saving, and sometimes the listing agent takes a bigger share. Get the answer in writing.
Where to go next
See the full sale result in the home sale net proceeds calculator. Check the tax on its own in the GST and HST calculator. Estimate your gain with the capital gains tax calculator.
Frequently asked questions
How much is real estate commission in Ontario?
Around 5% in total is common, plus 13% HST on the fee.
Who pays the buyer agent?
The seller usually pays it out of the sale price, as agreed in the listing contract.
Is commission negotiable?
Yes. There is no fixed rate.
Is HST charged on commission?
Yes, at 13% in Ontario.
What does a 5% commission cost on $950,000?
$47,500 plus $6,175 in HST, or $53,675.
Can I sell without an agent?
Yes, but you take on the pricing, marketing and paperwork yourself.
Sources and updates
Last reviewed: . Full disclaimer. How we build calculators. Editorial policy.
Estimate only. This calculator gives general information for planning. It is not tax, legal or financial advice, and it is not affiliated with the City of Toronto, MPAC or the Canada Revenue Agency. Results depend on the numbers you enter and may differ from official amounts. Check official sources or a qualified professional before you decide.