Real Estate Commission by State
Complete 2026 guide to agent commission rates in all 50 states
Last Updated: January 2026 | Data Sources: FastExpert Agent Survey (Q1 2025), Clever Real Estate Survey (2025-2026), NAR Member Profile (2025)
Understanding real estate commission rates is crucial whether you're buying or selling a home. Commission fees represent one of the largest transaction costs in real estate, and they vary significantly by state, from as low as 4.66% in New York to as high as 6.15% in Iowa.
Following the landmark NAR settlement in 2024, commission structures have evolved. This comprehensive guide breaks down the average real estate agent commission in every state, explains how commissions work post-settlement, and helps you understand what you'll actually pay when buying or selling a home.
📊 Key Commission Statistics (2025-2026)
Sources: FastExpert Agent Survey (580 agents, Q1 2025), Clever Real Estate Survey (2025-2026)
📖 Table of Contents
Real Estate Commission Rates by State (2026)
The table below shows the average real estate commission in each state, including the breakdown between buyer's agent and seller's agent fees. Data is compiled from multiple industry surveys conducted in 2025.
| State | Total Commission | Buyer's Agent | Seller's Agent | Est. Cost* |
|---|---|---|---|---|
| Alabama | 5.93% | 2.92% | 3.01% | $13,785 |
| Alaska | 5.03% | 2.45% | 2.58% | $19,059 |
| Arizona | 5.26% | 2.60% | 2.66% | $22,313 |
| Arkansas | 5.65% | 2.82% | 2.83% | $12,232 |
| California | 5.03% | 2.46% | 2.57% | $37,993 |
| Colorado | 5.65% | 2.82% | 2.83% | $29,934 |
| Connecticut | 5.00% | 2.35% | 2.65% | $21,985 |
| Delaware | 5.18% | 2.82% | 2.83% | $18,130 |
| Florida | 5.53% | 2.78% | 2.81% | $22,347 |
| Georgia | 5.67% | 2.91% | 2.76% | $18,779 |
| Hawaii | 5.03% | 2.45% | 2.58% | $41,064 |
| Idaho | 5.61% | 2.82% | 2.79% | $25,189 |
| Illinois | 5.29% | 2.71% | 2.85% | $14,129 |
| Indiana | 5.70% | 2.80% | 2.90% | $13,258 |
| Iowa | 5.70% | 2.80% | 2.90% | $12,010 |
| Kansas | 5.70% | 2.80% | 2.90% | $13,036 |
| Kentucky | 5.65% | 2.82% | 2.83% | $12,662 |
| Louisiana | 5.65% | 2.82% | 2.83% | $11,650 |
| Maine | 5.62% | 2.69% | 2.93% | $22,368 |
| Maryland | 5.55% | 2.72% | 2.83% | $22,494 |
| Massachusetts | 5.25% | 2.45% | 2.94% | $33,448 |
| Michigan | 5.73% | 2.88% | 2.85% | $13,592 |
| Minnesota | 6.02% | 2.85% | 3.17% | $20,269 |
| Mississippi | 5.62% | 2.82% | 2.83% | $10,521 |
| Missouri | 5.52% | 2.78% | 2.74% | $13,778 |
| Montana | 5.61% | 2.82% | 2.79% | $25,290 |
| Nebraska | 5.70% | 2.80% | 2.90% | $14,393 |
| Nevada | 5.08% | 2.82% | 2.79% | $21,590 |
| New Hampshire | 5.19% | 2.69% | 2.93% | $24,684 |
| New Jersey | 5.17% | 2.52% | 2.71% | $26,026 |
| New Mexico | 5.74% | 2.89% | 2.85% | $16,686 |
| New York | 4.66% | 2.69% | 3.07% | $20,215 |
| North Carolina | 5.50% | 2.69% | 2.81% | $18,238 |
| North Dakota | 5.70% | 2.80% | 2.90% | $15,077 |
| Ohio | 5.73% | 2.83% | 2.90% | $12,612 |
| Oklahoma | 6.12% | 3.06% | 3.06% | $12,118 |
| Oregon | 5.10% | 2.36% | 2.74% | $25,107 |
| Pennsylvania | 5.44% | 2.93% | 2.88% | $14,639 |
| Rhode Island | 4.86% | 2.69% | 2.93% | $21,797 |
| South Carolina | 5.65% | 2.82% | 2.83% | $16,939 |
| South Dakota | 5.70% | 2.80% | 2.90% | $16,992 |
| Tennessee | 5.80% | 2.92% | 3.08% | $19,285 |
| Texas | 5.85% | 2.97% | 2.88% | $17,761 |
| Utah | 5.39% | 2.82% | 2.79% | $27,462 |
| Vermont | 5.62% | 2.69% | 2.93% | $21,401 |
| Virginia | 5.58% | 2.83% | 2.86% | $21,505 |
| Washington | 4.86% | 2.37% | 2.49% | $28,203 |
| Washington DC | 5.30% | 2.75% | 2.75% | $30,078 |
| West Virginia | 5.44% | 2.82% | 2.83% | $9,177 |
| Wisconsin | 5.75% | 2.76% | 2.99% | $16,284 |
| Wyoming | 5.50% | 2.82% | 2.79% | $17,617 |
| National Average | 5.57% | 2.75% | 2.82% | $19,900 |
*Estimated commission cost based on state median home price (Zillow, 2025)
States with Highest and Lowest Commission Rates
Commission rates vary significantly across the country. Here's how states compare at both ends of the spectrum:
🔺 Highest Commission Rates
- 1. Oklahoma 6.12%
- 2. Minnesota 6.02%
- 3. Alabama 5.93%
- 4. Texas 5.85%
- 5. Tennessee 5.80%
🔻 Lowest Commission Rates
- 1. New York 4.66%
- 2. Rhode Island 4.86%
- 3. Washington 4.86%
- 4. Connecticut 5.00%
- 5. Alaska 5.03%
Highest Dollar Cost
- 1. Hawaii $41,064
- 2. California $37,993
- 3. Massachusetts $33,448
- 4. Washington DC $30,078
- 5. Colorado $29,934
Based on state median home prices
💵 Lowest Dollar Cost
- 1. West Virginia $9,177
- 2. Mississippi $10,521
- 3. Louisiana $11,650
- 4. Iowa $12,010
- 5. Oklahoma $12,118
Based on state median home prices
How Real Estate Commissions Work
Real estate commissions are typically paid as a percentage of the home's final sale price. Here's what you need to know about how these fees are structured and distributed:
The Commission Split
The total commission is usually split between four parties:
- Listing broker (the brokerage representing the seller)
- Listing agent (the individual agent working with the seller)
- Buyer's broker (the brokerage representing the buyer)
- Buyer's agent (the individual agent working with the buyer)
📝 Example: Commission on a $400,000 Home
With a 5.57% total commission rate:
- Total commission: $22,280
- Seller's agent side (2.82%): $11,280
- Buyer's agent side (2.75%): $11,000
Each agent then splits their portion with their brokerage (typically 50-70% to the agent).
Agent-Broker Splits
After the commission is divided between buyer and seller sides, each agent shares their portion with their brokerage. Common splits include:
- New agents: 50/50 split (agent keeps 50%)
- Experienced agents: 60/40 to 70/30 split
- Top producers: 80/20 to 90/10 split
- 100% commission brokerages: Agent keeps full commission but pays flat fees
According to the 2025 NAR Member Profile, 88% of REALTORS® work as independent contractors, and the median gross income for agents was $58,100 in 2024.
How the NAR Settlement Changed Commission Structures
The August 2024 National Association of REALTORS® (NAR) settlement brought significant changes to how real estate commissions work in the United States. Here's what changed:
Key Changes from the Settlement
- No more blanket commission offers on MLS: Listing agents can no longer advertise buyer's agent compensation through the MLS.
- Mandatory buyer-broker agreements: Buyers must now sign written agreements with their agents before touring homes, specifying the agent's compensation.
- Increased transparency: Commission rates must be disclosed upfront to all parties.
- Negotiation is encouraged: Buyers and sellers are more empowered to negotiate agent fees.
Post-Settlement Commission Trends
According to a June 2025 survey by Clever Real Estate:
- Average combined commission increased slightly from 5.32% to 5.44% in the year following the settlement
- Buyer's agent commission dropped to 2.58% in 2024, then rebounded to 2.75% in 2025
- 73% of agents reported buyer compensation negotiation as their top competitive strategy
- 64% of buyers who asked for lower commission rates were successful in negotiating
Commission Rates by Region
Commission rates cluster differently by region, influenced by local market conditions, home values, and competition among agents.
Pacific Region (Lowest Average: 5.01%)
States with higher property values like California, Hawaii, and Washington tend to have lower percentage-based commission rates. Since homes are more expensive, a lower percentage still yields substantial dollar amounts for agents.
- Washington: 4.86%
- California: 5.03%
- Alaska: 5.03%
- Hawaii: 5.03%
- Oregon: 5.10%
Northeast Region (Average: 5.52%)
The Northeast shows diverse rates, from Connecticut's competitive 5.00% to Pennsylvania's 5.81%:
- Connecticut: 5.00%
- New Jersey: 5.17%
- Massachusetts: 5.25%
- New York: 4.66%
- Pennsylvania: 5.81%
Midwest Region (Average: 5.71%)
The Midwest generally has higher commission rates, partly due to lower property values requiring higher percentages for agent viability:
- Minnesota: 6.02%
- Michigan: 5.73%
- Ohio: 5.73%
- Wisconsin: 5.75%
- Iowa: 5.70%
Southwest Region (Average: 5.74%)
The Southwest shows significant variation, with Arizona's competitive market at 5.26% and Oklahoma at 6.12%:
- Arizona: 5.26%
- New Mexico: 5.74%
- Texas: 5.85%
- Oklahoma: 6.12%
Southeast Region (Average: 5.67%)
The Southeast has moderate rates with Tennessee and Alabama at the higher end:
- North Carolina: 5.50%
- Florida: 5.53%
- Virginia: 5.58%
- Tennessee: 5.80%
- Alabama: 5.93%
How to Negotiate Real Estate Commission
Commission rates are always negotiable, they're not set by law or regulation. According to the FastExpert 2025 survey:
- 39.8% of agents are willing to negotiate their commission
- 43.7% say "maybe" based on the situation
- Only 16.5% hold firm to their stated rates
Tips for Negotiating Lower Commission
- Interview multiple agents: Get commission quotes from 3-5 agents before choosing
- Leverage your home's appeal: Easy-to-sell homes in hot markets warrant lower rates
- Bundle services: Offer to use the same agent for buying and selling
- Consider dual agency: In states where legal, one agent handling both sides may offer a discount
- Ask about reduced service packages: Some agents offer lower rates with fewer services
- Time it right: Negotiate before signing the listing agreement
⚠️ What Lower Commission May Mean
According to the FastExpert survey, 18.3% of agents cut services when accepting lower commission. Common cuts include:
- Professional photography
- Home staging
- Paid advertising and marketing
- Virtual tours
- Open houses
Who Pays Real Estate Commission?
Traditionally, the seller pays the full commission for both the listing agent and buyer's agent. The commission is deducted from the sale proceeds at closing. However, the NAR settlement has created more flexibility:
Current Commission Payment Options
- Seller pays both sides: Still the most common arrangement
- Buyer pays their agent directly: Becoming more common post-settlement
- Split payment: Seller and buyer each pay their own agent
- Negotiated arrangements: Commission rolled into sale price, credits at closing, etc.
Real Estate Agent Statistics
Understanding who real estate agents are can provide context for commission discussions:
Source: 2025 NAR Member Profile
Frequently Asked Questions
What is the standard real estate commission?
The national average is 5.57%, split between the buyer's agent (2.75%) and seller's agent (2.82%). However, rates vary significantly by state, ranging from 4.66% in New York to 6.12% in Oklahoma.
Is 6% commission still standard?
No, 6% is no longer the industry standard. While some agents still charge 6%, the national average has dropped to 5.57%. Many states now average well below 6%, especially in high-value markets like California (5.03%) and Washington (4.86%).
Can I negotiate real estate commission?
Yes, commission rates are always negotiable. Surveys show that over 80% of agents are open to negotiation, and 64% of clients who ask for lower rates are successful.
Why do commission rates vary by state?
Commission rates vary based on home values (higher-priced markets tend to have lower percentage rates), local competition, cost of living, and regional market conditions. States with lower median home prices often have higher commission percentages to ensure agent viability.
Does the buyer pay commission?
Traditionally, the seller pays the full commission from sale proceeds. However, after the 2024 NAR settlement, buyers may now pay their agent directly in some cases, especially if the seller isn't offering buyer's agent compensation.
How do I find out commission rates in my area?
Interview multiple agents and ask about their commission rates. You can also check local real estate websites, ask for referrals from friends who recently bought or sold, or consult your state's real estate commission.
What services are included in commission?
Full-service commissions typically include: property valuation, MLS listing, professional photography, marketing, showing coordination, offer negotiation, contract preparation, and closing support. Discount services may exclude some of these.
Cite This Resource
"Real Estate Commission by State: 2026 Complete Guide." Real Estate Agent Near Me, January 2026. https://realestateagentnearme.com/real-estate-commission-by-state/
Data Sources & Methodology
The commission data in this guide is compiled from multiple authoritative sources:
- FastExpert Agent Survey (Q1 2025): Survey of 580 registered agents across all 50 states, conducted January-April 2025.
- Clever Real Estate Survey (2025-2026): Comprehensive survey of active agents nationwide with regional breakdowns.
- NAR Member Profile (2025): Annual survey of 1.58 million NAR members covering income, demographics, and business practices.
- Zillow Home Value Index (2025): State median home prices for commission cost estimates.
- U.S. Census Bureau: Housing market statistics and new home sales data.
Commission rates represent averages from survey data. Actual rates may vary based on specific agents, brokerages, property types, and local market conditions. All rates are subject to negotiation.