HST on Real Estate Commissions: What Canadian Agents Owe
Agents earning over $30,000 must charge and remit HST. Here's how to calculate HST owing by province, claim input tax credits, and file correctly.
Real estate agent commissions are a taxable supply under Canada's GST/HST framework. Once you earn more than $30,000 in commissions in any 12-month period, you must register for GST/HST, charge it on every commission, and remit the net amount to CRA. Many new agents are caught off guard by this requirement.
Registration Threshold
You must register for HST/GST when your total taxable supplies (commissions, for most agents) exceed $30,000 in any single rolling 12-month period.
Once registered, you charge HST on 100% of commissions going forward — even in slower months. There is no option to "un-register" unless you consistently earn below $30,000.
Voluntary registration below the threshold is allowed and often beneficial — it enables you to claim ITCs on startup expenses even before you're required to register.
HST Rates by Province
| Province | Rate | Notes | |---------|------|-------| | Ontario | 13% HST | Harmonized | | BC | 5% GST | Provincial PST is separate and not charged on services | | Alberta | 5% GST | No provincial component | | Quebec | 5% GST + 9.975% QST = ~15% | Two separate tax authorities | | Nova Scotia | 15% HST | | | New Brunswick | 15% HST | | | Newfoundland & Labrador | 15% HST | | | PEI | 15% HST | | | Manitoba | 5% GST | PST applies to some services but not agent commissions | | Saskatchewan | 5% GST | |
The Input Tax Credit (ITC) Offset
You don't remit all HST collected. You deduct Input Tax Credits (ITCs) — the HST you paid on business expenses — from the HST you collected. The net difference is what you remit to CRA.
Example (Ontario agent, one quarter):
- HST collected on commissions: $6,500
- HST paid on business expenses (MLS fees, marketing, vehicle, software): $1,200
- Net HST remittance: $5,300
Filing Frequency
CRA assigns a filing frequency based on your annual net tax:
- Monthly: if annual net tax > $6 million (rare for agents)
- Quarterly: if annual net tax $3,000–$6 million
- Annually: if annual net tax < $3,000
Most agents file quarterly. Missing a filing triggers interest charges at CRA's prescribed rate.
The Quick Method: A Simpler Option
Small businesses (including agents) earning under $400,000 can opt for the Quick Method of HST accounting. Instead of tracking ITCs on every expense, you remit a fixed percentage of HST-inclusive revenue:
- Qualifying businesses in Ontario: approximately 8.8% of HST-inclusive revenue
The Quick Method is simpler but not always better. Agents with significant business expenses often fare better with regular method ITCs.
Try the Calculator
→ HST on Commission Calculator
Official Resources
- CRA — GST/HST for Real Estate Agents — CRA guide specifically for real estate practitioners (P-114 series)
- CRA — Register for GST/HST — when and how to register
- CRA — Input Tax Credits — how to claim ITCs on business expenses
- CRA — Quick Method of Accounting — eligibility and remittance rates for the Quick Method
- Revenu Québec — QST — Quebec's parallel QST system for agents in Quebec