ExamPassReal Estate Commission and HST Calculator
In Ontario, the seller's brokerage fee is set by agreement, and HST of 13% is charged on the fee, not on the sale price. The listing brokerage usually shares part of the fee with the buyer's (co-operating) brokerage, and each brokerage then pays its salesperson a split of its own share. Enter the price and the fee below to see each brokerage's share, the HST, each salesperson's split and what the seller keeps.
Enter a price and the fee to see each share, the HST and the seller's net.
How does the calculator work?
It follows the order an exam question expects:
- Work out the fee. A rate times the price, a flat fee, or a listing rate plus a co-operating rate.
- Split it by brokerage. The co-operating brokerage's share comes off the top; the listing brokerage keeps the rest.
- Add HST. 13% on each brokerage's fee (5% federal plus 8% for Ontario, Excise Tax Act, s. 165(1) and Schedule VIII). HST goes to the government, so it never forms part of anyone's split.
- Apply each salesperson's split to their own brokerage's share only. A 70% split on the listing side means 70% of the listing brokerage's share, never 70% of the whole fee.
- Net to the seller. The price, less the fee and HST, less any other selling costs you add, such as the mortgage payout and legal fees.
There is no standard commission rate in Ontario. The fee and how it is shared are written into the listing agreement.
Worked example: two brokerages and two splits
Danielle sells her home in Kingston for $875,000. Her listing agreement sets a 4% fee, half of it offered to the buyer's brokerage. Her salesperson is on a 70% split; the buyer's salesperson is on 80%.
| Step | Working | Amount |
|---|---|---|
| Total fee | $875,000 × 4% | $35,000.00 |
| Co-operating brokerage's share | $35,000 × 50% | $17,500.00 |
| Listing brokerage's share | $35,000 − $17,500 | $17,500.00 |
| HST on the fee | $35,000 × 13% | $4,550.00 |
| Listing salesperson (70% of $17,500) | $12,250.00 | |
| Buyer's salesperson (80% of $17,500) | $14,000.00 | |
| Danielle's net before other costs | $875,000 − $35,000 − $4,550 | $835,450.00 |
The listing brokerage keeps $5,250 and the buyer's brokerage keeps $3,500.
Frequently asked questions
Is HST charged on the whole sale price of a resale home?
No. On a resale home, HST is charged on the brokerage's fee. Whether HST applies to the price itself is a separate question that comes up with new homes and commercial property; see HST on commercial real estate in Ontario.
What if one brokerage represents both the buyer and the seller?
The fee is still split into two sides first, then each salesperson's split applies to their side. Turn on "Same brokerage on both sides" and the calculator labels the sides that way. Representing both parties raises its own rules; see designated representation vs multiple representation.
Why does the exam split the fee before the salesperson's split?
Because a salesperson is paid by their own brokerage from that brokerage's share. Applying a salesperson's split to the whole fee is the most common wrong answer, and exam distractors are built from it.