Last updated: February 2026 | Data sources: Bureau of Labor Statistics (BLS), National Association of Realtors (NAR)
Real Estate Agent Salary Overview (2026)
If you're considering a career in real estate, one of the first questions you'll ask is: how much do real estate agents make? The answer depends on several factors including location, experience, specialization, and how you structure your business.
According to the U.S. Bureau of Labor Statistics (BLS), the median annual wage for real estate agents and sales associates is $56,320 as of the most recent data (May 2024). Real estate brokers earn a higher median of $63,060. However, these numbers tell only part of the story. The top 10% of agents earn over $112,000 per year, while the bottom 10% earn less than $29,000.
The National Association of Realtors (NAR) 2024 Member Profile reports that the median gross income for Realtors was $55,800, with members who worked 60+ hours per week earning roughly three times more than those working under 20 hours. Full-time agents in strong markets consistently earn six figures.
With approximately 1.5 million real estate agents and brokers employed across the United States, the industry offers a wide range of earning potential depending on the market you serve and how you build your business.
Salary at a Glance
| Metric | Amount |
|---|---|
| Median Salary (Agents) | $56,320 |
| Median Salary (Brokers) | $63,060 |
| NAR Median Gross Income | $55,800 |
| Top 10% Earners | $112,000+ |
| Bottom 10% Earners | Less than $29,000 |
| Total U.S. Employment | ~1.5 million |
| Job Growth (2022-2032) | 3% (as fast as average) |
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Real Estate Agent Salary by State (Top 10 Highest-Paying)
Location is one of the biggest factors in how much real estate agents earn. States with expensive housing markets, high transaction volumes, and strong population growth tend to pay agents the most. Here are the top 10 highest-paying states for real estate agents based on mean annual wages:
| Rank | State | Mean Annual Wage | Median Home Price | Notes |
|---|---|---|---|---|
| 1 | New York | $102,310 | $430,000 | NYC luxury market drives high commissions |
| 2 | Massachusetts | $94,170 | $560,000 | Strong metro Boston demand |
| 3 | Connecticut | $89,550 | $380,000 | High-value residential corridor |
| 4 | Wyoming | $86,240 | $310,000 | Low agent count, luxury ranch properties |
| 5 | Colorado | $82,670 | $530,000 | Denver and mountain resort markets |
| 6 | Texas | $79,930 | $295,000 | Massive transaction volume, population growth |
| 7 | California | $78,470 | $750,000 | High prices but very competitive market |
| 8 | Washington | $77,850 | $560,000 | Seattle tech-fueled market |
| 9 | New Jersey | $76,290 | $440,000 | Dense population, high property values |
| 10 | Florida | $75,540 | $390,000 | Booming relocation and investor market |
Key takeaway: States with higher home prices generally pay agents more per transaction, but competition can be stiffer. States with rapid population growth like Texas and Florida offer high volume even with lower individual home prices.
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Real Estate Agent Salary by Experience Level
Like most commission-based professions, real estate income grows significantly with experience. New agents often struggle in their first year as they build their client base, while seasoned agents with strong referral networks can earn six or even seven figures.
| Experience Level | Typical Annual Income | Avg. Transactions/Year | Notes |
|---|---|---|---|
| Year 1 (New Agent) | $10,000 - $35,000 | 2-5 | Building pipeline; high expenses vs. income |
| Years 2-3 (Developing) | $35,000 - $65,000 | 5-10 | Growing referral base, improving conversion |
| Years 4-5 (Established) | $65,000 - $100,000 | 10-18 | Consistent deal flow, repeat clients |
| Years 6-10 (Experienced) | $100,000 - $175,000 | 18-30 | Strong brand recognition, team leverage |
| 10+ Years (Top Producer) | $175,000 - $500,000+ | 30-60+ | Team leader, multiple revenue streams |
Important note: These ranges assume a full-time commitment. The National Association of Realtors (NAR) reports that agents who work 60+ hours per week earn roughly three times more than those working fewer than 20 hours.
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How Real Estate Commissions Work
Real estate agents are almost always paid on commission rather than salary. Understanding how the commission structure works is critical for projecting your income.
The Standard Commission Model
The typical real estate transaction involves a commission of 5% to 6% of the home's sale price, though this rate is negotiable and has been trending downward in recent years. Following the 2024 NAR settlement, commission transparency has increased, and buyers may negotiate agent fees separately.
Here is how a typical $400,000 home sale with a 5.5% total commission breaks down:
| Step | Calculation | Amount |
|---|---|---|
| Total Commission | $400,000 x 5.5% | $22,000 |
| Listing Brokerage Share (50%) | $22,000 x 50% | $11,000 |
| Buyer Brokerage Share (50%) | $22,000 x 50% | $11,000 |
| Listing Agent Split (70/30) | $11,000 x 70% | $7,700 |
| Agent Before Expenses | - | $7,700 |
| Less: Marketing, MLS, E&O | ~$1,200 | -$1,200 |
| Net to Agent | - | $6,500 |
Agent-Broker Commission Splits
Your split with your brokerage has a huge impact on take-home pay. Common structures include:
| Split Model | How It Works | Best For |
|---|---|---|
| Traditional Split (50/50 to 70/30) | Brokerage takes 30-50% of your commission | New agents needing training and support |
| Graduated Split | Split improves as you hit volume targets | Mid-career agents building momentum |
| Cap Model (e.g., KW, eXp) | Pay brokerage until annual cap, then keep 100% | High-volume agents |
| 100% Commission (flat fee) | Keep all commission, pay monthly desk/transaction fee | Experienced agents with own lead gen |
Example: At a 70/30 split, an agent closing 15 transactions per year at an average commission of $8,000 earns:
- Gross commission: 15 x $8,000 = $120,000
- After 70/30 split: $120,000 x 70% = $84,000
- After expenses (~$12,000): $72,000 net income
Factors That Affect Real Estate Agent Income
1. Location and Market Conditions
The local housing market is the single biggest factor in your earning potential. Agents in San Francisco, Manhattan, or Miami Beach can earn $20,000+ per transaction on luxury properties, while agents in rural markets may earn $3,000-$5,000 per deal.
High-income market characteristics:
- Median home prices above $500,000
- Low housing inventory (seller's market)
- Strong population growth or inbound migration
- Active investor and second-home buyer activity
2. Specialization and Niche
Agents who specialize tend to earn more than generalists. Popular specializations include:
| Specialization | Income Premium | Why It Pays More |
|---|---|---|
| Luxury Residential | +40-100% | Higher price points, fewer transactions needed |
| Commercial Real Estate | +50-200% | Larger deal sizes, longer lease commissions |
| Investment Properties | +30-60% | Repeat investor clients, portfolio deals |
| New Construction | +20-40% | Builder relationships, volume deals |
| Relocation | +15-30% | Corporate contracts, guaranteed referrals |
| Property Management | +Recurring income | Monthly management fees create steady cash flow |
3. Brokerage Type
Your choice of brokerage affects your income, support, and expenses:
| Brokerage Type | Examples | Pros | Cons |
|---|---|---|---|
| National Franchise | Keller Williams, RE/MAX, Coldwell Banker | Brand recognition, training | Franchise fees, desk fees |
| Local Independent | Varies by market | Local expertise, flexibility | Less brand power |
| Virtual/Cloud | eXp Realty, Real Broker | Low overhead, high splits | Less in-person support |
| Discount | Redfin (employed agents) | Salary + bonus, benefits | Lower total comp ceiling |
| Luxury Boutique | Sotheby's, Compass | Premium clients, prestige | High expectations, competitive |
4. Lead Generation and Marketing
Top-producing agents invest heavily in lead generation. The agents who control their own lead sources (rather than depending on brokerage-provided leads) typically earn 2-3x more.
Common lead generation costs:
- Zillow/Realtor.com leads: $200-$1,000+/month
- Google/Facebook ads: $500-$2,000/month
- Direct mail campaigns: $300-$800/month
- CRM and technology tools: $100-$500/month
- Professional photography: $150-$400 per listing
Residential vs. Commercial Real Estate Agent Salary
One of the biggest career decisions for aspiring real estate professionals is whether to pursue residential or commercial real estate. Each path has distinct income profiles.
| Factor | Residential | Commercial |
|---|---|---|
| Median Income | $56,320 | $85,000 - $120,000 |
| Top Earner Potential | $200,000 - $500,000 | $250,000 - $1,000,000+ |
| Deal Size | $200,000 - $1,000,000 | $1,000,000 - $50,000,000+ |
| Commission Rate | 2.5% - 3% per side | 3% - 6% (varies by deal type) |
| Average Per-Deal Income | $5,000 - $15,000 | $15,000 - $150,000+ |
| Transaction Cycle | 30-60 days | 3-12 months |
| Deals Per Year | 10-25+ | 3-10 |
| Ramp-Up Time | 6-12 months | 1-3 years |
| Income Consistency | Moderate (many small deals) | Volatile (few large deals) |
| License Required | Real estate salesperson | Same license (additional training) |
Bottom line: Commercial real estate has a higher income ceiling but takes longer to get established. Residential provides faster cash flow and is easier to break into. Many successful agents start in residential and transition to commercial after building capital and experience.
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How to Maximize Your Real Estate Income
Build a Referral-Based Business
The highest-earning agents get 60-80% of their business from referrals and repeat clients. This means lower marketing costs and higher-quality leads.
Strategies to increase referrals:
- Stay in touch with past clients (quarterly check-ins)
- Send market updates and home anniversary cards
- Ask for referrals at every closing
- Build relationships with attorneys, lenders, and financial advisors
- Host client appreciation events
Invest in Your Skills
Continuing education and designations can increase your earning potential:
| Designation | Focus | Income Impact |
|---|---|---|
| CRS (Certified Residential Specialist) | Residential expertise | CRS agents earn 2x the average |
| ABR (Accredited Buyer's Representative) | Buyer representation | Stronger buyer pipeline |
| SRES (Seniors Real Estate Specialist) | 55+ market | Growing demographic, less competition |
| CCIM (Certified Commercial Investment Member) | Commercial investment | Premium commercial clients |
| GRI (Graduate, REALTOR Institute) | General real estate | Well-rounded market knowledge |
Build a Team
Solo agents hit an income ceiling around $250,000-$400,000 because there are only so many hours in a day. Building a team allows you to earn overrides on your team members' transactions while focusing on listing appointments and high-value activities.
Typical team structure income potential:
- Solo agent: $75,000 - $250,000
- Small team (2-3 agents): $150,000 - $500,000
- Large team (5-10+ agents): $300,000 - $1,000,000+
Diversify Your Income Streams
Top earners rarely depend on commission alone:
- Property management fees (8-12% of monthly rent)
- Real estate investing (your own portfolio)
- Coaching and mentoring newer agents
- Referral fees from agents in other markets (25% typical)
- Ancillary services (staging, photography, title company ownership)
Expenses and Taxes: What Agents Actually Keep
Real estate agents are independent contractors in most cases, which means you're responsible for your own taxes, health insurance, and business expenses. Understanding your true net income is essential for financial planning.
Common Annual Expenses
| Expense Category | Annual Cost Range |
|---|---|
| MLS Dues | $400 - $1,200 |
| NAR/Board Dues | $400 - $800 |
| E&O Insurance | $200 - $600 |
| Marketing & Advertising | $2,000 - $15,000 |
| Technology (CRM, website) | $1,200 - $5,000 |
| Vehicle/Transportation | $3,000 - $8,000 |
| Continuing Education | $200 - $1,000 |
| Professional Photos/Staging | $1,500 - $5,000 |
| Self-Employment Tax (15.3%) | Varies by income |
| Health Insurance | $3,000 - $12,000 |
| Total Estimated Expenses | $12,000 - $48,000+ |
Tax Implications
As an independent contractor, you'll pay:
- Self-employment tax: 15.3% (Social Security + Medicare)
- Federal income tax: Based on your bracket (10% - 37%)
- State income tax: Varies by state (0% in TX, FL, NV, WA, etc.)
- Quarterly estimated taxes: Required to avoid penalties
Example: An agent earning $100,000 gross commission with $20,000 in expenses:
| Item | Amount |
|---|---|
| Gross Commission | $100,000 |
| Business Expenses | -$20,000 |
| Net Self-Employment Income | $80,000 |
| Self-Employment Tax (15.3%) | -$12,240 |
| Federal Income Tax (~16% effective) | -$12,800 |
| State Income Tax (avg. ~5%) | -$4,000 |
| Take-Home Pay | ~$50,960 |
Real Estate Agent Salary vs. Related Careers
How does a real estate agent's earning potential compare to similar careers?
| Career | Median Salary | Top Earner Potential | License/Certification | Time to Start Earning |
|---|---|---|---|---|
| Real Estate Agent | $56,320 | $200K - $500K+ | State real estate license | 2-4 months |
| Real Estate Broker | $63,060 | $300K - $1M+ | Broker license (2+ years exp) | 3-5 years |
| Mortgage Loan Officer | $65,740 | $150K - $250K | NMLS license | 2-3 months |
| Insurance Agent | $59,080 | $130K - $300K+ | State insurance license | 1-2 months |
| Financial Advisor | $102,140 | $500K - $1M+ | SIE + Series 7 + Series 65/66 | 3-6 months |
| Property Manager | $60,670 | $100K - $150K | State license (some states) | 1-3 months |
| Home Inspector | $62,860 | $80K - $120K | State license/certification | 1-3 months |
Key insight: Real estate has one of the highest earning ceilings among careers that don't require a college degree. While the median is moderate, top producers consistently earn $200,000-$500,000+, making it one of the most accessible paths to a six-figure income.
Getting Started: Pass Your Real Estate Licensing Exam
Ready to start earning? The path is straightforward:
Step 1: Complete Pre-Licensing Education
Every state requires pre-licensing coursework before you can sit for the exam. Requirements range from 40 hours (some states) to 180+ hours (Texas requires 180 hours).
Step 2: Pass Your Real Estate Licensing Exam
The real estate exam consists of a national portion and a state-specific portion. The national pass rate is only 50-60% on the first attempt -- thorough preparation is essential.
| Exam Component | Details |
|---|---|
| National Portion | 80-100 questions covering property ownership, contracts, financing, valuation |
| State Portion | 30-50 questions on state-specific laws and practices |
| Passing Score | 70-75% (varies by state) |
| Test Format | Multiple choice, computer-based |
| Cost | $50 - $150 per attempt |
| Retest Wait | 1-30 days depending on state |
Step 3: Choose a Brokerage and Start Selling
New agents must work under a licensed broker. Choose a brokerage that offers strong training, mentorship, and a commission split that works for your financial situation.
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Real Estate Agent Salary Outlook (2026 and Beyond)
The real estate industry continues to evolve, and several trends will impact agent earnings in 2026 and beyond:
Positive trends for agent income:
- Housing inventory remains tight in most markets, supporting prices
- Demographic shifts (millennials entering peak home-buying years) increase demand
- Growing interest in real estate investing creates more transaction opportunities
- Technology tools help agents work more efficiently and close more deals
Challenges to watch:
- Commission compression following the NAR settlement
- iBuyer and discount brokerage competition
- Rising interest rates may slow transaction volume
- AI tools changing how buyers search for homes
Despite these challenges, skilled real estate agents who provide genuine value to their clients continue to earn strong incomes. The agents who adapt to new technologies, build strong referral networks, and specialize in their markets will thrive.
Is a Real Estate Career Worth It in 2026?
A career in real estate offers unlimited income potential, flexible schedules, and the satisfaction of helping people with one of the biggest decisions of their lives. However, it's not for everyone.
Real estate is a great fit if you:
- Are self-motivated and entrepreneurial
- Enjoy building relationships and networking
- Can handle irregular income, especially early on
- Are willing to work evenings and weekends
- Want income tied directly to your effort and results
It may not be ideal if you:
- Need a guaranteed paycheck from day one
- Prefer a traditional 9-to-5 schedule
- Are uncomfortable with sales and self-promotion
- Cannot fund 3-6 months of expenses while building your business
The bottom line: the median real estate agent earns $56,320, but this number hides enormous variation. Part-time agents earn far less, while committed full-time agents who invest in their business, build referral networks, and specialize in profitable niches regularly earn six figures and beyond. Your income in real estate is largely up to you.
Ready to start earning? Your first step is passing the licensing exam. Don't pay for expensive prep courses -- start with our free resources and see if you even need more.