What is the Commission for Real Estate Agents in Texas?

Are you looking to get into real estate in Texas but wondering how much you'll earn as an agent? Figuring out your income can be less straightforward than you’d expect, as most real estate agents receive their compensation in the form of a commission. This means that instead of getting a check for the same amount each month, agents earn a percentage of the sales price of every house that they help their clients either buy or sell.

So, what’s the amount of a typical real estate agent commission check? In Texas, recent surveys find the average total commission is about 5.85% of a home’s sale price. However, legally there isn’t a uniform commission rate, and the amount you end up taking home depends on several factors.

How a Real Estate Commission is Figured in Texas

The commission you’ll earn as a real estate agent in TexasTexas Texas Real Estate Agent Income Career Center can vary. Traditionally, it will be a cut of a percentage that is split four ways. I know, that sounds like a lot of splitting, but there are usually four players who need to be compensated.

Who Gets Paid in a Transaction?

Real estate agents share their compensation with their sponsoring broker in TexasTexas What Is Sponsoring Broker Career Center. They’ll negotiate how much of the commission they’ll share during the hiring process. So, there’s one split right there between the agent and their broker.

Typically, another brokerage is involved in a transaction too! Let’s say, for example, that one brokerage represents the seller (the listing brokerage) and another represents the buyer (the buyer’s brokerage). Each brokerage has one sponsoring broker and their agent working in the transaction.

How Traditional Commission Splits Work

Here’s how the traditional commission split looks:

1. First, the commission amount for the transaction is negotiated between the seller of the property and the listing agent. Once they agree on an amount, it will be included in the listing agreement – the contract that outlines the terms for how the agent will help sell the house.

2. Next, the listing agent may offer a percentage to a cooperating broker who brings the buyer.

3. Then, when the house sells, the buyer's real estate agent will receive their share.

Both the listing agent and the buyer’s agent share their commissions with their sponsoring brokers. That’s why a sale often results in four-way commission splits. Importantly, all commission splits are negotiable. Recent changes also require written buyer agreements before touring homes and remove offers of compensation from MLS displays, though broker compensation itself remains fully negotiable.

Commission Split Example

Let’s look at an example. Say a home is listed for $300,000, and the seller and listing agent agree on a 6% commission. When the house sells, that 6% commission, or $18,000, will go toward paying commissions.

If the listing brokerage and the buying brokerage decide on a 50/50 split, each will get $9,000 to split with their agents. If the buying agent and their sponsoring broker agree on a 50/50 split, they each receive $4,500. The listing side works the same way.

• Home sale price: $300,000

• Total commission (6%): $18,000

• Listing broker: $4,500

• Listing agent: $4,500

• Buyer’s broker: $4,500

• Buyer’s agent: $4,500

Note: There are no fixed commission rates in Texas. Federal antitrust law prohibits setting standard rates, and in practice the commission varies by property, market, and brokerage service model. Recent Texas averages hover around 5.85%.

Does the Buyer or Seller Pay the Commission?

Traditionally, the seller pays the commission (with the cost often built into the home’s list price). But in 2025, contract changes in Texas clarified that each party is responsible for the brokerage fees they agree to in writing. Sellers can also agree to make contributions toward the buyer’s brokerage fees when negotiating. In short, the answer is case-by-case: it all comes down to what the buyer and seller negotiate.

Breaking Commission Tradition

Not all brokerages in Texas follow the same commission model. Some firms are moving away from the traditional 5–6% structure by offering flat fees or reduced listing rates. For example, Redfin advertises a 1.5% listing fee (or 1% if you also buy with them within 365 days)Why Redfin How You Save. While that can mean savings for sellers, it’s important to read the fine print. Buyer’s agent commissions are usually not included, and the level of service may differ compared to full-service brokerages.

These newer models show that commissions are flexible and negotiable. Sellers and buyers can choose between traditional full-service arrangements or alternative fee structures depending on their priorities — whether that’s maximizing exposure, saving money, or balancing both. The bottom line is that in Texas, you’re never locked into one way of doing business. By understanding the options, clients and agents alike can make informed decisions that work best for their needs.

Get Your Real Estate License in Texas

According to Indeed, real estate agents in Texas earn an average base salary of about $91,585 per yearReal Estate Agent Salaries TX Career. Of course, earnings vary widely depending on your sales volume, location, and experience. The most successful agents can earn well above the average. Beyond income potential, many agents highlight the freedom to design their own schedules and the satisfaction of building a career that grows with their effort and ambition. A flexible work scheduleReal Estate Career Offers Flexibility Blog is one of the biggest draws for new parents, career changers, and anyone looking for more control over their time.

If you’re serious about starting a career in real estate, the first step is earning your license. With AceableAgent, you can earn your Texas real estate license onlineTexas Real Estate License through a program that’s TREC-approved, self-paced, and designed to fit into your busy life. You’ll gain the knowledge and confidence you need to pass the exam and launch a rewarding career in one of the nation’s most dynamic housing markets.