Calculating realtor fees in Ontario is straightforward once you know the rate. Multiply the sale price by the commission percentage, then add 13% HST. Most of the math errors sellers make come from forgetting HST or mis-estimating what the buyer's agent (BAC) will be paid. Use the formulas and worked examples below to get to a number you can plan around.
In this guide, we cross-reference Ontario Realtor Fees, Closing Costs When Selling, and Capital Gains Tax on Real Estate — click through whenever you want to go deeper on a related concept.
The Formula
Total realtor cost = Sale Price × Commission % × 1.13 (for HST).
Where Commission % is the total commission (listing side + BAC), typically 4–5% in the GTA.
Worked Example: $750,000 Scarborough Semi
| Item | Calculation | Amount |
|---|---|---|
| Sale price | — | $750,000 |
| Commission @ 5% | $750,000 × 0.05 | $37,500 |
| HST on commission | $37,500 × 0.13 | $4,875 |
| Total cost | — | $42,375 |
Worked Example: $1,250,000 Toronto Detached
| Item | Calculation | Amount |
|---|---|---|
| Sale price | — | $1,250,000 |
| Commission @ 4.5% | $1,250,000 × 0.045 | $56,250 |
| HST on commission | $56,250 × 0.13 | $7,313 |
| Total cost | — | $63,563 |
Worked Example: $2,500,000 Lawrence Park Home
| Item | Calculation | Amount |
|---|---|---|
| Sale price | — | $2,500,000 |
| Commission @ 4% | $2,500,000 × 0.04 | $100,000 |
| HST on commission | $100,000 × 0.13 | $13,000 |
| Total cost | — | $113,000 |
Don't Forget the Other Selling Costs
- Real estate lawyer: $1,500–$2,500 plus disbursements.
- Mortgage discharge / penalty: varies — confirm with your lender.
- Capital gains tax (if not your principal residence).
- Staging, photography, and pre-list repairs.
Frequently Asked Questions
Is HST included in the realtor commission percentage?+
No. The percentage (e.g. 5%) is the commission. HST at 13% is added on top of that. Always confirm whether a quoted rate is HST-inclusive or HST-extra before signing.
Does the seller always pay the buyer's agent?+
In the vast majority of GTA resale transactions, yes — through the BAC offered on the MLS. CREA rule changes allow alternative arrangements but practice has not shifted significantly in Ontario.
Can I deduct realtor commissions from capital gains?+
Yes — if the property is not your principal residence and you owe capital gains tax, the commission and legal fees are deducted from your sale proceeds when calculating the gain. Confirm with your accountant.
Are commissions tax-deductible against income tax?+
Only when you sell an investment or rental property — they reduce your capital gain. Commissions on the sale of your principal residence are not deductible because the gain itself is exempt.
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