How Much Do Real Estate Agents Make in Texas?

A career in real estate can be financially rewarding. According to some statistics, becoming a Texas real estate agent can come with a six-figure income. Of course how much you can earn will depend on a number of factors, all of which you can learn about right here.

According to Indeed, the average salary for a real estate agent in the United States is a little over $99,000 as of May 2024. Hold on, though. The Bureau of Labor Statistics (BLS) stated in May 2023 that the national average salary for real estate agents was $69,610.

Why are the averages so different?

The first thing you’ve got to consider is that the income of a real estate agent is different from one location to the next. If you want to know how much real estate agents in Texas make you have to look specifically at the state information. And even then the incomes are going to vary depending on the market you serve.

Keep reading for a better idea of what impacts a Texas real estate agent’s income and what you can expect to earn working as an agent in the Lone Star State.

Being a Texas Real Estate Agent vs. Being a Realtor

There are a lot of sources for data on income, and the National Association of REALTORS® (NAR) is one of them. They track detailed information on all of their members, of which there are hundreds of thousands. Joining NAR is a mark of professionalism in the real estate industry since Realtors must follow a Code of Ethics.

NAR found the median gross income of a Realtor in 2022 was $56,400. Keep in mind that median income tends to be significantly lower than average income. The BLS has the median income for real estate agents as being $54,300. That means a Realtor earns slightly more than a real estate agent in a year.

How Are Real Estate Agents Paid in Texas?

Unlike many other professions, a real estate agent works for commission rather than having a salaried wage. The commission you'll earn as a real estate agent in Texas can vary depending on your brokerage and the deal itself.

All agents on a deal are first paid by way of the commission that’s negotiated on the listing agreement between the property owner and the listing agent’s brokerage. Typically, the property owner will pay the listing brokerage somewhere between 1-6% of the sale price as commission. The listing brokerage will then split the commission with the buyer agent’s brokerage. Almost always it’s a 50/50 split.

Each agent then receives their portion of the commission from their broker. Agents just entering the profession might receive a lower commission split with their broker that’s close to 50/50. Or you may have a lower commission split at the start of a calendar year that increases in your favor the more sales you make.

So How Much Does a Texas Real Estate Agent Make?

It turns out that Texas is a great state for real estate agents. Texas cities have been growing faster than cities in other states, which has helped many markets remain active despite slow downs in other parts of the country. It’s safe to say that now is still a great time to get your Texas real estate license.

The average annual salary for real estate agents in Texas is $78,390 according to the BLS, and Indeed has the annual salary at almost $85,000. That’s well above the national average income for agents, and it’s much higher than the average income for all occupations in Texas, which is $61,240. In fact, the real estate market with the highest paid agents is in Texas. Real estate agents in Midland, TX make $118,560.

But that’s just one real estate market in Texas. Let’s look at a few more for a better comparison of how much a real estate agent in Texas makes each year.

How much do real estate agents make in Austin?

If you’re in Austin and considering getting your real estate license, you could potentially make an average of $88,996 per year as of June 2022. This is 13% above the national average. Austin saw extreme growth several years ago due to the booming tech scene and has been a thriving market ever since with a population that’s steadily making its way to one million. Austin agents can expect to sell single-family homes as well as downtown condos.

How much do real estate agents make in Houston?

For those who are looking to get their real estate license in a big city, Houston is for you. With a population of 2.3 million, Houston is the largest city in Texas and the fourth-largest city in the U.S. The entire Houston area extends far and wide to include many suburbs and stretches all the way to the coast in Galveston. In this bustling city, Houston real estate agents make an average of $91,008 per year as of June 2022.

How much do real estate agents make in Waco?

Boasting a population of 134,432 as of 2016, Waco is a much smaller Texas town than the others on this list. But that doesn't mean it isn’t a lucrative market for real estate -- Waco real estate agents make an average of $81,730 Waco is also home to Baylor University and the popular Magnolia Market featured in HGTV’s ‘Fixer Upper,’ so the town is sure to see an influx of visitors each year who may want to call Waco home in the near future.

How much do real estate agents make in San Antonio?

As the fastest growing city in Texas currently, it would be a smart move to get your real estate license in San Antonio. Real estate agents here make an average of $91,668 per year as of June 2022. Real estate agents in the San Antonio area can expect to see an increase in home sales as the population is 1.5 million and seeing major growth.

How much do real estate agents make in Dallas?

If you want to get your real estate license in a big city with plenty of different areas and selling opportunities available, then consider Dallas. Real estate agents in Dallas make about $87,354 per year as of June 2022, which meets the national average.

While these are the averages, remember that there is no limit to how much a real estate agent can make. Building a reputation in your area and becoming an expert in the field will render no limits to your annual income.

If you’re interested in Texas real estate as a career path, you have to start with getting your license. Start your journey with our Texas pre-licensing course today!