Tax season can feel daunting for real estate agents, but it doesn’t have to be! We’ll walk through a detailed tax deductions worksheet for real estate agents - we also have a handy tax calculator for 2025. By understanding your write-offs (from vehicle mileage to home office expenses) and using our real estate agent tax calculator, you can confidently estimate how much taxes real estate agents pay and keep more of your hard-earned commissions.

Whether you need a checklist to track expenses or a quick way to estimate your tax bill, we’ve got you covered.

Grab your real estate agent tax deductions worksheet (Excel and PDF), and follow along to maximize your deductions and minimize stress!

• PDF Link
• Excel Link

How Much Do Real Estate Agents Pay in Taxes?

If you’ve ever wondered, “So, how much taxes do real estate agents pay?”, the answer is: it depends on your income and deductions. Real estate agents are typically self-employed independent contractors, meaning you pay self-employment tax (15.3%) on net earnings in addition to federal and state income taxes ​collective.com ​goldenappleagencyinc.com. In practice, this means your tax rate can be a combination of:

• Self-Employment Tax (Social Security + Medicare) – 15.3% of your net profit​ goldenappleagencyinc.com.
• Federal Income Tax – applied on a progressive scale (10% up to 37%) depending on your taxable income bracket ​goldenappleagencyinc.com.
• State Income Tax – varies widely by state (some states like Florida and Texas have no income tax, while others like California and New York impose higher rates)​ desitaxservice.com.

For example, if you net $80,000 after expenses, you’ll owe about $12,000 in self-employment tax plus whatever federal tax corresponds to your bracket (and state tax if applicable). Many tax experts recommend setting aside ~25–30% of your commissions for taxes throughout the year​ desitaxservice.com. This general rule of thumb typically covers your federal, state, and self-employment taxes, though high earners in high-tax states might aim for 35–40%​ desitaxservice.com. The good news is that effective tax planning and deductions can significantly reduce your taxable income, lowering the overall tax you pay.

👉 Tip: As a self-employed professional, you may also qualify for the 20% Qualified Business Income (QBI) deduction on your net profit, which can further reduce your taxable income ​adp.com. This means after you subtract all your business expenses (deductions below), you might be able to deduct an additional 20% of your remaining business income on your tax return – a huge tax saver for many agents!

In short, how much real estate agents pay in taxes will depend on how much they earn and how much they deduct. That’s why tracking your expenses is so important. Let’s dive into the full real estate agent tax deductions worksheet for 2025 so you can ensure you’re not missing any money-saving write-offs.

Tax Deductions Worksheet for Real Estate Agents (2025)

Below is a detailed checklist of common tax deductions for real estate agents. Use it as a worksheet to mark off which expenses apply to you. You can easily copy this list into a spreadsheet – or download our ready-made real estate agent tax deductions worksheet (Excel or PDF) – to keep track of amounts for each category. These categories cover most ordinary and necessary expenses of a real estate business in 2025. Keeping receipts and documentation for each will help you maximize your deductions (and substantiate them in case of an audit).

Vehicle and Transportation

• Standard Mileage Deduction: For 2025, you can deduct $0.70 per mile for every business mile driven ​mileiq.com. This is the simplest method – track miles for client meetings, showings, open houses, etc., and multiply by 70¢. Example: 5,000 business miles yields a $3,500 deduction. (Note: commuting from home to your regular office is not deductible​ mileiq.com.)
• Actual Auto Expenses: Instead of the mileage rate, you can deduct actual vehicle costs if higher. This includes gas, oil, repairs, maintenance, tires, insurance, registration, and even depreciation or lease payments, proportional to business use​ mileiq.com. For instance, if 70% of your car’s use is for real estate business, you can deduct 70% of those total car expenses. (You must choose either actual expenses or the standard mileage rate for the year – not both​ support.taxslayer.com.)
• Parking and Tolls: Keep track of parking fees, meter costs, and tolls paid while on business errands or showings. These are fully deductible business expenses, even if you use the standard mileage method (since the mileage allowance covers only operating costs like gas, not parking fees) ​mileiq.com.

Travel (Business Travel)

• Airfare, Train, Car Rentals: If you travel out of town for real estate conferences, training, or to meet clients, the transportation costs (flights, train tickets, rental cars, etc.) are deductible​mileiq.com. For example, a flight to a real estate convention is a business expense.
• Lodging: Hotel bills or other accommodation costs for overnight business travel are deductible​ mileiq.com. Always keep detailed receipts – if you combine business with personal travel, deduct only the portion related to business.
• Meals While Traveling: Meals during overnight business travel are 50% deductible in 2025​ mileiq.com. Save those restaurant receipts when you’re traveling for a conference or out-of-town property showings. (Note: In 2025, the usual 50% limit applies for business meals; the temporary 100% deduction allowed in 2021-2022 for restaurant meals has expired​ mileiq.com.)
• Incidental Travel Expenses: Don’t forget incidental costs like baggage fees, Uber or taxi fares at your destination, tips for hotel staff, and even laundry on extended trips​ mileiq.com. These small expenses can be deducted if they occur during a business trip.

Home Office and Office Expenses

• Home Office Deduction: Do you work from a home office? If you have a dedicated space in your home used exclusively and regularly for your real estate business, you can take the home office deduction. The easy option is the simplified method: deduct $5 per square foot of your home office, up to 300 sq. ft. (max $1,500)​ mileiq.com. For example, a 200 sq. ft. home office would yield a $1,000 deduction. The more complex option is to deduct actual expenses: a portion of your rent or mortgage interest, utilities, insurance, and property taxes corresponding to your office’s percentage of your home’s area​ mileiq.com. (Tip: The $5/sq ft simplified deduction is often easiest, but if your costs are very high, calculate both methods or consult a CPA.)
• Office Rent or Co-Working Fees: If you rent separate office space or pay for a co-working membership instead of (or in addition to) a home office, those fees are fully deductible​ mileiq.com. Many agents pay desk fees to their brokerage or rent a desk at a co-working hub – treat these just like office rent.
• Office Supplies and Equipment: All the supplies that keep your business running are deductible – think stationery, printer ink, notebooks, folders, postage, etc.​ desitaxservice.com. Office equipment like a computer, printer, scanner, office furniture, or a cell phone can be deducted too. Smaller items are expensed directly, while big-ticket items (e.g. a laptop) may be depreciated over a few years. Either way, keep receipts for any equipment purchased for business use.
• Utilities and Office Maintenance: If you have a separate office, expenses like electricity, water, and garbage for that space are business expenses. For a home office, you can deduct a portion of your utilities (electricity, gas, water, trash) proportional to the home office size, if using the actual expense method​ mileiq.com. Also, expenses to repair or maintain your home office space (like painting the office room) are deductible​ mileiq.com.
• Business Phone & Internet: The portion of your cell phone plan and home internet that you use for business can be deducted​ mileiq.com. For example, if you use your personal cell phone 60% for business calls and data, you can deduct 60% of your phone bill. If you have a dedicated business phone or a separate business internet line, that’s 100% deductible. (Hint: It’s often easier to justify the deduction if you have a separate phone or number for work ​mileiq.com.)

Marketing and Advertising

• Online Advertising: Money spent on online lead generation and ads is deductible ​mileiq.com. This includes Facebook/Instagram ads, Google Ads, Zillow/Realtor.com leads, email newsletter services, and any pay-per-click campaigns to attract clients​ mileiq.com. Keep invoices from digital ad platforms or marketing services.
• Print Marketing Materials: Traditional marketing costs like business cards, lawn signs, property flyers, brochures, direct mail campaigns, and door hangers are fully deductible business expenses​ mileiq.com ​mileiq.com. Even the postage for mailing out farming letters or postcards can be written off.
• Website and Tech Services: The expenses for your website – such as domain registration, hosting fees, design or maintenance costs – are deductible​ mileiq.com. If you pay for a real estate CRM, an email marketing tool, or a social media management tool to schedule posts, those subscriptions count as marketing or software expenses. In short, any expense to promote your services or manage client outreach is likely a write-off.
• Staging and Photography: If you pay for professional listing photos, virtual tours, videography, or home staging services for your listings, those costs are marketing expenses that you can deduct. For example, hiring a photographer for $300 or renting staging furniture – it’s all part of selling the property and thus a business expense. (If you buy staging items or a camera outright, those might be treated as assets to depreciate ​support.taxslayer.com, but either way the cost is deductible over time.)

Meals and Client Gifts

• Business Meals: Taking clients out to lunch or coffee, or dining with colleagues or referral partners, can be partially deducted. As a general rule, 50% of qualifying business meal costs can be deducted ​mileiq.com. The meal must be business-related (you discuss business or it’s with a client/prospect) and not extravagant. For instance, if you spend $100 on a client dinner, $50 is tax deductible. Keep the receipt and jot down who you met and the business purpose. (Reminder: purely personal meals or social outings that don’t involve business aren’t deductible. And as of current law, entertainment expenses – like sports tickets or golf games – are not deductible even if you discuss business, so only the food/drinks portion would count.)
• Client Gifts: Client gifts are deductible up to $25 per recipient per year​ irs.gov. The IRS caps business gift deductions at $25 for each individual you gift to, whether it’s a thank-you closing gift for a buyer or a holiday present to a referring partner. For example, if you give a $50 gift basket to a client, your deduction is $25. Small branded items under $4 (like pens or calendars with your logo) don’t count toward the $25 limit ​irs.gov. Also, incidental costs like gift wrapping or shipping can be deducted on top of the $25 limit​ irs.gov. So keep receipts for all client appreciation gifts – every bit helps. (And if you really want to splurge on a client, consider making it a promotional item with your branding – those can sometimes be counted as advertising instead of gifts.)

Commissions and Fees

• Commission Splits with Broker: If you work under a brokerage that takes a split of your commissions, that split is effectively a business expense for you. For example, if you earned $100,000 in gross commissions and paid $30,000 to your broker (70/30 split), you would report $100k income but can deduct the $30k as a commission expense. These commission splits are deductible on your Schedule C​ mileiq.com – they reduce your taxable income. (In practice, many brokers will only issue you a 1099 for your net commissions, but if not, make sure to deduct the portion paid to the broker.)
• Referral Fees: If you pay a referral fee to another agent or receive a referral that you have to pay out, that payment is deductible​ mileiq.com. For instance, giving a 25% referral fee to an out-of-state agent for sending you a client is a cost of doing business. Track any referral fees you pay.
• Desk Fees and Franchise Fees: Many brokerage companies charge monthly “desk fees” or franchise fees to their agents for being affiliated with the brand or for using office resources. These fees are generally fully deductible business expenses​ mileiq.com. Whether it’s a flat monthly office fee or a cut taken off each transaction (franchise fee), include these in your expense records. They directly reduce your net income (and your tax bill).
• Other Fees: Don’t overlook miscellaneous fees like MLS dues, lockbox fees, Supra key fees, or transaction coordinator fees you might pay per deal. These can be deducted either as fees or as part of office expenses/professional services. Essentially, any required fee to operate in your real estate business is likely deductible.

Professional Development (Licenses, Memberships, Education)

• License Renewal and Exam Fees: All costs related to maintaining your real estate license are deductible. This includes your state license renewal fees and any exam or application fees for license upgrades. Often, renewing a license involves continuing education courses – those fees are deductible too​ mileiq.com.
• Professional Membership Dues: Annual dues for professional organizations like the National Association of REALTORS® (NAR), your state or local REALTOR® association, MLS membership fees, and similar professional groups are deductible ​mileiq.com. These memberships are part of being in business. (Note: NAR typically indicates a small portion of dues that goes to lobbying is not deductible – for example, if $50 of your dues goes to lobbying, you cannot deduct that part. The remainder is deductible. Keep an eye on the statement from the association, which usually specifies the nondeductible portion.)

• Continuing Education & Training: Expenses for continuing education (CE) courses required to maintain your license, as well as optional workshops, webinars, or coaching programs to improve your skills, are all tax write-offs​ mileiq.com. If you attend a real estate seminar or take an online course on, say, commercial real estate, the course fee, textbooks or materials, and related costs are deductible.
• Conferences and Networking Events: Registration fees for real estate conferences, conventions, or networking events are deductible ​mileiq.com. If you travel to a conference, those travel costs (as covered in the travel section) are deductible too. The portion of meals at the conference would fall under the meals category (50% deductible).
• Certifications and Designations: Fees for obtaining or renewing special designations or certifications (e.g., CRS – Certified Residential Specialist, ABR – Accredited Buyer’s Representative, or any state-specific specialty certification) are deductible ​mileiq.com. The classes or exams you take to earn these designations, and any required membership fee for the designation, can be written off as professional development costs.

Insurance

• Errors & Omissions Insurance (E&O): E&O insurance premiums – which most agents pay to protect against liability for mistakes or omissions in their work – are tax-deductible business expenses ​mileiq.com. If your brokerage doesn’t cover your E&O and you pay it out of pocket (often hundreds of dollars a year), make sure to deduct it.
• General Business Liability Insurance: If you carry any liability insurance or umbrella insurance for your business (for example, coverage in case a client is injured at a showing or open house), those premiums are deductible​ mileiq.com. Insurance that is integral to your business operations is generally a write-off.
• Self-Employed Health Insurance: This one isn’t a business expense on Schedule C, but it’s still a significant deduction “above the line.” If you pay for your own health insurance (and aren’t eligible for coverage through a spouse or another employer), you can deduct 100% of your health, dental, and qualified long-term care insurance premiums for yourself, your spouse, and dependents​ mileiq.com. This deduction goes on your Form 1040 (not Schedule C) but effectively reduces your taxable income. It’s a big benefit for self-employed individuals like real estate agents. (Note: It’s limited by your business profit – you can’t deduct more in premiums than your net real estate income – and you can’t take it if you were eligible for a subsidized employer plan.)

Professional Services and Software

• Accounting & Tax Preparation: Fees paid to your accountant, bookkeeper, or tax preparer for your business accounting and tax filing are deductible​ mileiq.com. Also, if you use a payroll service or bookkeeping software specifically for your business, those costs are deductible as well. Basically, any expense to get professional help with your business finances or taxes can be written off.
• Legal Fees: If you consult an attorney for a business matter – perhaps to review a contract, handle a dispute, or set up an LLC for your real estate business – the attorney’s fees are deductible. Legal fees related to your trade or business are ordinary expenses. For example, paying an attorney $300 to draft an independent contractor agreement for your assistant would be a valid deduction.
• Contract Labor: Do you hire people to help in your business, such as a transaction coordinator, virtual assistant, freelance marketer, or maybe a photographer or home stager (not as a marketing service you buy, but someone you contract directly)? Payments to independent contractors for business-related work are deductible as contract labor ​support.taxslayer.com. For instance, if you pay a freelance admin $500/month to help with paperwork, or $200 to a photographer for each listing, those costs are business expenses. (If you paid any individual $600 or more for the year, remember to issue them a 1099-NEC and keep a record of that ​support.taxslayer.com.)
• Software and Subscriptions: The cost of business-related software, apps, and subscriptions is deductible. This includes your CRM software, accounting software (QuickBooks, etc.), mileage tracking app subscriptions, e-signature services (DocuSign), cloud storage for business files, or any specialized real estate tools you pay for. For example, if you subscribe to a mileage app like MileIQ to track your drives, that subscription fee is a tax write-off​ mileiq.com. Paying for a premium Zillow profile or a virtual tour software? Deduct it. Even generic software like Microsoft Office, Adobe PDF editor, or G Suite counts if you use it for your business. Essentially, any digital tool that is ordinary and necessary for running your real estate business belongs on your deductions worksheet.

Other Potential Write-Offs

Finally, here are a few miscellaneous deductions real estate agents should remember:

• Business Bank Fees & Interest: If you have a separate business bank account or credit card, any bank fees, wire transfer fees, or interest on business credit cards/loans are deductible. For example, interest on a business credit line used to fund marketing expenses is a write-off ​support.taxslayer.com.
• Licenses and Taxes: Some states or cities charge business license fees or local business taxes for real estate professionals. Those fees/taxes are deductible as a business expense (usually under taxes & licenses). Also, if you pay for a background check or fingerprints as part of licensing, that’s a cost of doing business.
• Employment Taxes (if you have employees): If you have hired an assistant as a W-2 employee, the wages you pay and payroll taxes (Social Security, Medicare, unemployment tax) are deductible business expenses​ support.taxslayer.com. Most agents don’t have W-2 employees (they use contractors instead), but if you do, be sure to account for these.

As you can see, agents and realtors can claim a wide range of tax deductions – from the big-ticket items like car and home office down to the small stuff like stationery and parking meters. It’s worth keeping a detailed log of these expenses. Every deductible dollar effectively reduces your taxable income, which in turn cuts your tax bill (often by 30-40 cents on the dollar, considering combined federal/state/SE tax). In short, mastering your deductions is key to paying less in taxes and keeping more of your commission income​ mileiq.com.

To Learn More...

For real estate professionals, understanding these concepts can be particularly valuable during discussions with clients about why REALTORS® and real estate agents are knowledgable professionals.

If you’re preparing for your Real Estate Continuing Education or looking to enhance your knowledge through a Real Estate Course, topics like fair housing and confronting racial discrimination can help set you apart.

As part of your License Renewal Course or other Real Estate CE efforts, staying informed on foundational property concepts can make a big difference in your expertise and client relationships.