Realtors · Edmonton
GST on real estate commission in Edmonton: splits and referrals
Who charges GST on a commission, what happens when it's split between brokerages and agents, and how to handle referral fees without overpaying or under-remitting.
By the Plum team- Updated Oct 2026
- 7 min read
- Real estate commissions are taxable, so 5% GST applies in Alberta.
- The listing brokerage charges GST to the seller, then shares commission plus GST with the cooperating brokerage.
- A registered agent charges GST on their share to their own brokerage and remits it to CRA.
- Referral fees are generally taxable too. The GST you pay on business costs comes back as input tax credits.
GST is one of the few things in real estate that's the same on a $280,000 condo in Callingwood and a $1.2 million home in Glenora: 5% on the commission. Where agents get tripped up is everything that happens after the seller pays. This guide explains how GST on real estate commission in Edmonton flows through brokerages, splits and referral fees, and what ends up on your own GST return.
1Who charges GST, and to whom
In Alberta, commission is earned by the brokerage, and agents are paid their share through the brokerage. That creates two separate GST layers.
- Brokerage to client. The listing brokerage invoices the seller for the commission plus 5% GST. It pays the cooperating (buyer's) brokerage its share, plus GST on that share.
- Agent to brokerage. As an independent agent, you're supplying services to your brokerage. If you're registered for GST, you charge GST on the commission your brokerage pays you, and you remit it to CRA.
Most brokerages build this into their commission statements: your share, the GST on your share, and any fees they deduct (which carry their own GST). The format varies, so learn to read yours line by line.
2A worked example
Say a listing agreement pays 7% on the first $100,000 and 3% on the balance, and the home sells for $500,000. This is just an example; your agreements may differ.
| Step | Amount | GST |
|---|---|---|
| Total commission (7% of $100,000 + 3% of $400,000) | $19,000 | $950 |
| Paid to buyer's brokerage (say half) | $9,500 | $475 |
| Kept by listing brokerage | $9,500 | $475 |
| Listing agent's share (say 80%) | $7,600 | $380 |
| Brokerage keeps (20%) | $1,900 | $95 |
If you're the registered listing agent here, $7,600 is your income and the $380 is GST you've collected for CRA. It isn't yours, even though it lands in your bank account with everything else.
3When you need a GST number
You must register once your taxable sales pass $30,000 over any four consecutive calendar quarters, or in a single quarter. For an agent, taxable sales means your commission income, before brokerage fees or expenses. Two or three deals can get you there.
Until you register, you're a small supplier: you don't charge GST on your share, and you can't claim back the GST you pay. Once you cross, you have to start charging. Our guide to the $30,000 rule walks through the timing and the steps.
4Splits, caps and team payouts
Splits don't change the rate, just who charges what to whom. A few situations come up constantly:
Brokerage fees and caps
The portion your brokerage keeps, plus desk fees, transaction fees and admin fees, is a cost to you. Your brokerage charges GST on it. If you're registered, that GST is an input tax credit you claim back.
Team splits
If you're on a team, each licensed member is usually paid their share through the brokerage. A registered team member charges GST on their share like any other agent. Team leads have extra layers to track, which we cover in our real estate team bookkeeping guide.
Bonuses and incentives
Brokerage bonuses, revenue share and incentive payments can be taxable or not depending on what they're for. Check how your brokerage reports them and ask your accountant about anything unusual.
5How GST works on referral fees
Referral fees are payments for a real estate service, so they're generally taxable. Common cases:
- You refer a buyer to an agent in Calgary. The referral fee is paid brokerage to brokerage. Your brokerage charges GST, and your share flows to you with GST if you're registered.
- An agent in Leduc refers a seller to you. The fee your brokerage pays out carries GST, which is part of the deal's costs. If the cost is passed to you, the GST on it can be an input tax credit.
- Referrals across the border. Fees paid to or received from a non-resident brokerage can be treated differently for GST. Get your accountant's view before you file.
Also check RECA's rules and your brokerage's policy on who you can pay referral fees to. That's a licensing question rather than a tax one, but it affects how the payment is documented.
6Filing your GST return
Most agents file GST annually, though you can choose quarterly or monthly. Your return boils down to two numbers:
- GST collected on your commission share and any referral fees.
- Input tax credits for the GST you paid on brokerage fees, marketing, signs, photography, software, phone, the business share of your vehicle, and other business costs.
The difference is what you owe. Annual filers whose net tax was over $3,000 the previous year usually have to make quarterly GST instalments, so watch for that after a big year.
The cleanest way to get this right is to record each commission statement the same way every time: gross commission, GST collected, brokerage fees, GST paid on those fees, and net deposit. Here's what that looks like for the listing agent in the example above:
| Line | Amount | Where it goes |
|---|---|---|
| Gross commission share | $7,600 | Commission income |
| GST charged to brokerage | $380 | GST collected (a liability, not income) |
| Transaction fee, say $300 | $300 | Brokerage fees expense |
| GST on the transaction fee | $15 | GST paid (input tax credit) |
| Net deposit | $7,665 | Bank |
Record it this way and your GST return becomes a report you run, not a puzzle you solve.
Mistakes that cost agents money
- Recording the net deposit as income. You'll overstate income by the GST and understate your brokerage costs, and nothing will match your slips.
- Forgetting the GST on brokerage fees. Every desk fee and transaction fee carries GST you can claim back once registered.
- Charging GST before your registration date, or not charging it after. Both create a mess to unwind. Note your effective date and tell your brokerage the day you register.
- Claiming credits on personal costs. Only the business share of your phone, vehicle and home office qualifies.
We set up exactly this kind of routine for agents across Edmonton, St. Albert and Spruce Grove. Book a free 15-minute call and bring a commission statement you'd like explained.
7Questions people ask
Do realtors charge GST on commission in Alberta?
Yes. Real estate commissions are a taxable supply, so GST at 5% applies. The brokerage charges it to the client, and an agent who is registered for GST charges it on their share to the brokerage.
Does a realtor need a GST number?
Once your taxable commission income passes $30,000 over four consecutive calendar quarters, or in a single quarter, you must register. Many agents cross that in their first good year.
Is GST charged on real estate referral fees?
Generally yes. A referral fee paid for real estate services is taxable, so the brokerage or agent earning it charges GST if registered. Referrals to or from outside Canada can be treated differently, so check those with your accountant.
Can a realtor claim GST paid on brokerage fees?
Yes, if you're registered. The GST on desk fees, brokerage splits, marketing, software and other business costs comes back to you as input tax credits on your GST return.
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Book a free 15-min callThis article is general information for Alberta businesses and isn't tax or legal advice. Rules and thresholds change, so confirm your situation with your accountant or CRA.