Real Estate Commission by State
Complete 2026 guide to agent commission rates in all 50 states
Last Updated: October 2026 | Data Sources: FastExpert Agent Survey (Q1 2025), Clever Real Estate Survey (2026), NAR Member Profile (2026)
Real estate commission by state ranges from 4.62% in New York to 6.00% in Virginia in our 2026 data. The national average is 5.46%, which equals about $21,840 on a $400,000 home.
The biggest 2026 change is not just the rate. Buyers now sign written agreements before touring homes, and buyer-agent compensation is negotiated more openly. Sellers still often offer concessions to attract buyers, but the amount varies by local market and price point.
Quick answer: what commission should you expect?
Most sellers should budget 5% to 6% of the sale price if they plan to cover both sides of the transaction. Buyers should review their agency agreement before the first showing because it controls how their agent gets paid if the seller does not offer enough compensation.
On the current national median home price, the average total commission is about $20,311. Use the calculator below for your state and sale price.
📊 Key Commission Statistics (2026)
Sources: FastExpert Agent Survey (580 agents, Q1 2025), Clever Real Estate Survey (2026)
📖 Table of Contents
Free tool
Real estate commission calculator by state
Choose a state and enter a home price to estimate total commission, buyer-side commission, and seller-side commission using the averages on this page.
Average commission for Alabama based on a $400,000 home.
Real Estate Commission Rates by State (2026)
The table below shows the average real estate commission in each state, including the listing agent side, buyer agent side, estimated dollar cost, likely seller concession range, and negotiability. Data is compiled from multiple industry surveys conducted in 2025 and 2026.
| State | Total Commission | Buyer's Agent | Seller's Agent | Est. Cost* | Seller Concession | Negotiability |
|---|---|---|---|---|---|---|
| Alabama | 5.59% | 2.78% | 2.81% | $12,997 | Often 2.5-2.75% | Market-dependent |
| Alaska | 5.22% | 2.55% | 2.67% | $19,779 | Often 2.5-2.75% | Market-dependent |
| Arizona | 5.71% | 2.83% | 2.88% | $24,222 | Often 2.5-2.75% | Market-dependent |
| Arkansas | 5.59% | 2.78% | 2.81% | $12,102 | Often 2.5-2.75% | Market-dependent |
| California | 5.08% | 2.51% | 2.57% | $38,379 | Often 2.5-2.75% | High |
| Colorado | 5.47% | 2.69% | 2.78% | $28,980 | Often 2.5-2.75% | High |
| Connecticut | 5.03% | 2.44% | 2.59% | $22,117 | Often 2-2.5% | Market-dependent |
| Delaware | 5.59% | 2.78% | 2.81% | $19,565 | Often 2.5-2.75% | Market-dependent |
| Florida | 5.29% | 2.64% | 2.64% | $21,377 | Often 2.5-2.75% | Market-dependent |
| Georgia | 5.74% | 2.85% | 2.89% | $19,011 | Often 2.5-2.75% | Market-dependent |
| Hawaii | 5.22% | 2.55% | 2.67% | $42,632 | Often 2.5-2.75% | High |
| Idaho | 5.47% | 2.69% | 2.78% | $24,560 | Often 2.5-2.75% | Market-dependent |
| Illinois | 4.90% | 2.49% | 2.41% | $13,088 | Often 2-2.5% | Market-dependent |
| Indiana | 5.57% | 2.72% | 2.85% | $12,956 | Often 2.5-2.75% | Market-dependent |
| Iowa | 5.61% | 2.74% | 2.87% | $11,820 | Often 2.5-2.75% | Market-dependent |
| Kansas | 5.61% | 2.74% | 2.87% | $12,830 | Often 2.5-2.75% | Market-dependent |
| Kentucky | 5.59% | 2.78% | 2.81% | $12,527 | Often 2.5-2.75% | Market-dependent |
| Louisiana | 5.59% | 2.78% | 2.81% | $11,527 | Often 2.5-2.75% | Market-dependent |
| Maine | 5.03% | 2.44% | 2.59% | $20,019 | Often 2-2.5% | Market-dependent |
| Maryland | 5.69% | 2.75% | 2.94% | $23,062 | Often 2.5-2.75% | Market-dependent |
| Massachusetts | 5.03% | 2.44% | 2.59% | $32,046 | Often 2-2.5% | High |
| Michigan | 5.91% | 3.09% | 2.82% | $14,019 | Plan for 2.5-3% | Moderate |
| Minnesota | 5.74% | 2.70% | 3.03% | $19,327 | Often 2.5-2.75% | Market-dependent |
| Mississippi | 5.59% | 2.78% | 2.81% | $10,464 | Often 2.5-2.75% | Market-dependent |
| Missouri | 5.61% | 2.74% | 2.87% | $14,003 | Often 2.5-2.75% | Market-dependent |
| Montana | 5.47% | 2.69% | 2.78% | $24,659 | Often 2.5-2.75% | Market-dependent |
| Nebraska | 5.61% | 2.74% | 2.87% | $14,165 | Often 2.5-2.75% | Market-dependent |
| Nevada | 5.47% | 2.69% | 2.78% | $23,248 | Often 2.5-2.75% | Market-dependent |
| New Hampshire | 5.03% | 2.44% | 2.59% | $23,923 | Often 2-2.5% | Market-dependent |
| New Jersey | 5.07% | 2.46% | 2.61% | $25,522 | Often 2-2.5% | High |
| New Mexico | 5.62% | 2.85% | 2.77% | $16,337 | Often 2.5-2.75% | Market-dependent |
| New York | 4.62% | 2.21% | 2.41% | $20,042 | Often 2-2.5% | Market-dependent |
| North Carolina | 5.59% | 2.81% | 2.79% | $18,536 | Often 2.5-2.75% | Market-dependent |
| North Dakota | 5.61% | 2.74% | 2.87% | $14,838 | Often 2.5-2.75% | Market-dependent |
| Ohio | 5.65% | 2.65% | 3.00% | $12,436 | Often 2.5-2.75% | Market-dependent |
| Oklahoma | 5.62% | 2.85% | 2.77% | $11,128 | Often 2.5-2.75% | Market-dependent |
| Oregon | 5.22% | 2.55% | 2.67% | $25,698 | Often 2.5-2.75% | Market-dependent |
| Pennsylvania | 5.71% | 2.83% | 2.88% | $15,366 | Often 2.5-2.75% | Market-dependent |
| Rhode Island | 5.03% | 2.44% | 2.59% | $22,560 | Often 2-2.5% | Market-dependent |
| South Carolina | 5.59% | 2.78% | 2.81% | $16,759 | Often 2.5-2.75% | Market-dependent |
| South Dakota | 5.61% | 2.74% | 2.87% | $16,723 | Often 2.5-2.75% | Market-dependent |
| Tennessee | 5.59% | 2.78% | 2.81% | $18,587 | Often 2.5-2.75% | Market-dependent |
| Texas | 5.61% | 2.87% | 2.75% | $17,032 | Often 2.5-2.75% | Market-dependent |
| Utah | 5.47% | 2.69% | 2.78% | $27,870 | Often 2.5-2.75% | High |
| Vermont | 5.03% | 2.44% | 2.59% | $19,154 | Often 2-2.5% | Market-dependent |
| Virginia | 6.00% | 2.92% | 3.08% | $23,124 | Plan for 2.5-3% | Moderate |
| Washington | 5.22% | 2.55% | 2.67% | $30,292 | Often 2.5-2.75% | High |
| Washington DC | 5.34% | 2.63% | 2.72% | $30,304 | Often 2.5-2.75% | High |
| West Virginia | 5.59% | 2.78% | 2.81% | $9,430 | Often 2.5-2.75% | Market-dependent |
| Wisconsin | 5.61% | 2.74% | 2.87% | $15,888 | Often 2.5-2.75% | Market-dependent |
| Wyoming | 5.47% | 2.69% | 2.78% | $17,520 | Often 2.5-2.75% | Market-dependent |
| National Average | 5.46% | 2.7% | 2.76% | $20,300 | Often 2.5-2.75% | Market-dependent |
*Estimated commission cost based on state median home price (Zillow, 2025)
Seller Concessions After the NAR Settlement
Commission pages used to answer one question: what percentage does the seller pay? In 2026, the better question is what each side agrees to pay in writing.
Many sellers still offer buyer-agent compensation because it can make a listing easier to show and easier for cash-strapped buyers to afford. But that offer is now handled outside the MLS in many markets, and buyers can negotiate the gap in their purchase offer.
How to read the table
Seller concession is the practical buyer-agent compensation range sellers should discuss before listing. It is not a legal requirement, and it changes by city, price point, and property demand.
Negotiability estimates where sellers have the most room to push for a lower rate. Higher-priced homes usually have more room because the agent's dollar fee remains meaningful even at a lower percentage.
Before signing, ask each agent what they charge, what is included, what buyer-side concession they recommend, and what services they remove if the rate is reduced.
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. Virginia 6.00%
- 2. Michigan 5.91%
- 3. Georgia 5.74%
- 4. Minnesota 5.74%
- 5. Arizona 5.71%
🔻 Lowest Commission Rates
- 1. New York 4.62%
- 2. Illinois 4.90%
- 3. Connecticut 5.03%
- 4. Maine 5.03%
- 5. Massachusetts 5.03%
Highest Dollar Cost
- 1. Hawaii $42,632
- 2. California $38,379
- 3. Massachusetts $32,046
- 4. Washington DC $30,304
- 5. Washington $30,292
Based on state median home prices
💵 Lowest Dollar Cost
- 1. West Virginia $9,430
- 2. Mississippi $10,464
- 3. Oklahoma $11,128
- 4. Louisiana $11,527
- 5. Iowa $11,820
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 5.46% total commission rate:
- Total commission: $21,840
- Seller's agent side (2.76%): $11,040
- Buyer's agent side (2.70%): $10,800
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 2026 NAR Member Profile, 86% of REALTORS® work as independent contractors, and the median gross income for agents was $59,200 in 2025.
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: 5.21%)
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: 5.22%
- California: 5.08%
- Alaska: 5.22%
- Hawaii: 5.22%
- Oregon: 5.22%
Northeast Region (Average: 5.29%)
The Northeast shows diverse rates, from Connecticut's competitive 5.03% to Pennsylvania's 5.71%:
- Connecticut: 5.03%
- New Jersey: 5.07%
- Massachusetts: 5.03%
- New York: 4.62%
- Pennsylvania: 5.71%
Midwest Region (Average: 5.68%)
The Midwest generally has higher commission rates, partly due to lower property values requiring higher percentages for agent viability:
- Minnesota: 5.74%
- Michigan: 5.91%
- Ohio: 5.65%
- Wisconsin: 5.61%
- Iowa: 5.61%
Southwest Region (Average: 5.64%)
The Southwest shows significant variation, with Arizona's competitive market at 5.71% and Oklahoma at 5.62%:
- Arizona: 5.71%
- New Mexico: 5.62%
- Texas: 5.61%
- Oklahoma: 5.62%
Southeast Region (Average: 5.61%)
The Southeast has moderate rates with Virginia and Georgia at the higher end:
- North Carolina: 5.59%
- Florida: 5.29%
- Virginia: 6.00%
- Tennessee: 5.59%
- Alabama: 5.59%
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: 2026 NAR Member Profile
Frequently Asked Questions
How much is real estate commission on a $300,000 house?
At the national average of 5.46%, commission on a $300,000 home totals $16,380. The seller's agent receives about $8,280 (2.76%) and the buyer's agent receives about $8,100 (2.70%). Actual rates vary by state and negotiation.
How much is real estate commission on a $500,000 house?
Commission on a $500,000 home averages $27,300 at 5.46%. That splits roughly $13,800 to the listing agent and $13,500 to the buyer's agent. On higher-priced homes, agents are often willing to negotiate lower percentage rates.
How much is real estate commission on a $1,000,000 house?
Commission on a $1 million home averages $54,600 at 5.46%. Most agents will negotiate a lower rate on luxury properties — commissions of 4-5% are common for million-dollar sales, saving you $14,600-$24,600 compared to the standard rate.
What is the standard real estate commission?
The national average is 5.46%, split between the buyer's agent (2.70%) and seller's agent (2.76%). However, rates vary significantly by state, ranging from 4.62% in New York to 6.00% in Virginia.
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 5.46%. Many states now average well below 6%, especially in high-value markets like California (5.08%) and Washington (5.22%).
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.
When Do You Pay Real Estate Commission?
Commission payment timing depends on which side of the transaction you're on. Here's a clear breakdown of when money changes hands.
At Closing (Most Common)
In the vast majority of transactions, commission is paid at closing from the sale proceeds. The title company or closing attorney distributes commission payments directly to the brokerages before the seller receives their net proceeds. No upfront payment is required.
Timeline of Commission Events
- Listing agreement signed: Commission rate is agreed upon between seller and listing agent. No money changes hands yet.
- Buyer-broker agreement signed: Buyer agrees to their agent's compensation terms (required post-NAR settlement).
- Offer accepted: Commission terms may be included in the purchase agreement or negotiated as part of the deal.
- Closing day: Commission is deducted from sale proceeds and distributed. The seller never writes a separate check for commission.
What If the Sale Falls Through?
If a sale doesn't close, no commission is typically owed. Commission is contingent on a successful closing. Exceptions exist for rare "procuring cause" disputes, where an agent may claim they found a ready, willing, and able buyer even if the seller chose not to proceed.
Key Takeaway: You don't pay commission until your home actually sells and closes. Commission comes from the sale proceeds, not from your pocket.
FSBO vs. Agent-Assisted Sales: Is Saving on Commission Worth It?
Some sellers consider For Sale By Owner (FSBO) to avoid paying commission. Here's how the numbers actually compare.
| Metric | FSBO Sales | Agent-Assisted Sales |
|---|---|---|
| Median Sale Price | $380,000 | $435,000 |
| Price Difference | FSBO homes sell for $55,000 less (14.5%) | |
| Commission Cost (5.46%) | $0 (no agent) | $23,751 |
| Net to Seller | $380,000 | $411,249 |
| Seller Advantage | Agent-assisted sellers net $31,249 MORE even after paying commission | |
Source: NAR Profile of Home Buyers and Sellers, 2024
The data shows that sellers who use an agent net more money even after paying commission. This is because agents provide professional pricing, marketing exposure, and negotiation skills that typically result in higher sale prices.
FSBO sellers also face significant challenges. The most common difficulties include pricing correctly (17%), selling within the planned timeline (13%), and handling complex paperwork (10%).
Learn more about the differences in our detailed FSBO statistics guide.
Flat Fee and Discount Brokerage Alternatives
Traditional percentage-based commission isn't the only option. Several alternative commission structures have gained popularity.
Flat Fee MLS Listing
Flat fee MLS services list your home on the MLS for a one-time fee, typically $300 to $3,000. You handle showings, negotiations, and paperwork yourself. This works best for experienced sellers in hot markets where homes sell quickly.
Discount Brokerages
Discount brokerages offer reduced commission rates, typically 1% to 1.5% for the listing side instead of the standard 2.5-3%. Services may be limited. Some offer full service at reduced rates by leveraging technology and higher transaction volume.
Hybrid Models
Some brokerages combine a lower base commission with a la carte services. You might pay 1% for basic listing services, then add professional photography, staging, or open houses for additional fees.
Consider the Trade-offs
Lower commission often means reduced services. According to agent surveys, the services most commonly cut when accepting lower commission include:
- Professional photography and videography
- Home staging consultation
- Paid advertising on social media and real estate portals
- Open house events
- Dedicated showing coordination
A full-service agent's marketing and negotiation skills often recover more than the commission savings from a discount service.
If you're unsure which approach is right for your situation, get matched with a local agent who can explain your options and help you make the best decision for your market.
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 (2026): Comprehensive survey of active agents nationwide with regional breakdowns.
- NAR Member Profile (2026): Annual survey of 1.44 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.
Frequently Asked Questions About Real Estate Commissions
What is the average real estate commission in 2026?
The national average real estate commission is 5.46% of the home sale price in 2026, typically split between the seller's agent (2.76%) and the buyer's agent (2.70%). On a $400,000 home, that totals about $21,840 in commission fees.
Who pays the real estate agent commission?
Traditionally, the seller pays the total commission, which is then split between the listing agent and buyer's agent. However, after the 2024 NAR settlement, buyers may now be responsible for negotiating and paying their own agent's commission separately. Practices vary by state and transaction.
Can you negotiate real estate agent commissions?
Yes, real estate commissions have always been negotiable by law. The 2024 NAR settlement reinforced this by requiring agents to use written buyer agreements with clearly stated compensation. Many agents will negotiate, especially for higher-priced properties or repeat clients.
Which state has the highest real estate commission?
Virginia has the highest average total commission in our data at 6.00%, followed by Michigan at 5.91% and Georgia at 5.74%. States with lower median home prices often have higher percentage-based commission rates so agents can still earn a viable fee per transaction.
Which state has the lowest real estate commission?
New York has the lowest average total commission in our data at 4.62%, followed by Illinois at 4.90% and Connecticut at 5.03%. High-cost states often have lower percentage rates because the dollar amount per transaction is already substantial.
How did the NAR settlement change real estate commissions?
The August 2024 NAR settlement eliminated the requirement for listing agents to offer compensation to buyer's agents through the MLS. Buyers now sign written agreements with their agents specifying compensation. This has led to more transparent and individually negotiated commission structures.
How much is real estate commission on a $300,000 house?
At the national average of 5.46%, real estate commission on a $300,000 home totals approximately $16,380. This splits roughly $8,280 to the listing agent and $8,100 to the buyer's agent. Rates vary by state and are always negotiable.
How much is real estate commission on a $500,000 house?
Commission on a $500,000 home averages $27,300 at 5.46%. That splits roughly $13,800 to the listing agent and $13,500 to the buyer's agent. Agents are often willing to negotiate lower rates on higher-priced properties.
How much is real estate commission on a $1 million house?
Commission on a $1 million home averages $54,600 at 5.46%. Many agents will negotiate lower rates on luxury properties, and commissions in the 4% to 5% range are common for million-dollar sales.