How is BC realtor commission calculated?

The historical default is 7% on the first $100,000 plus a percentage on the remainder. Bronson's structure slides from 3% on the remainder at ≤$500K, to 2.5% at ≥$800K (linear in between). GST (5%) is charged on top of the commission. All of this is fully negotiable under the BCFSA Real Estate Services Rules — the input field above is editable.

When do I pay capital gains tax?

Capital gains tax is NOT paid at completion — your notary doesn't withhold it. It's owed via your personal T1 tax return for the year of disposition, payable by April 30 of the following year. The trust-account cheque above is what hits your bank account; budget for the capital gains tax separately as a tax-return obligation.

What is the Principal Residence Exemption?

The PRE eliminates capital gains tax on a home that was your principal residence for every year you owned it. If it was your principal residence for some but not all years, a partial PRE applies (years-as-PR ÷ total-years-owned). For partial-PRE math or rental-property scenarios, this calculator treats the home as either fully PR or fully non-PR — speak with a CPA for the partial case.

What is the BC Home Flipping Tax?

A provincial tax (effective Jan 1, 2025) on profits from selling within 730 days of purchase. The rate is 20% for sales within 365 days, sliding linearly to 0% at 730 days. Owner-occupiers held ≥365 days can deduct up to $20K. It's on top of capital gains tax. The federal CRA anti-flipping rule also applies and disqualifies PRE on sales within 365 days unless a life-event exception applies (death, divorce, job relocation, disability, etc.).

How is the prepayment penalty calculated?

Variable-rate mortgages: 3 months of interest at the contract rate (balance × rate × 0.25). Fixed-rate mortgages: the greater of 3 months' interest OR the Interest Rate Differential (IRD), which compares your contract rate to the lender's current posted rate for a term matching your remaining term. IRD calculation varies by lender — call yours for the binding figure before listing.

Is GST charged on commission?

Yes — 5% federal GST on the gross commission. On a $50,000 commission, that's $2,500 of GST collected by the brokerage and remitted to CRA. The calculator surfaces this as a separate line. Some commercial sellers can claim GST input tax credits; consult your CPA for that case.

Net proceeds calculator — for sellers

BC Net Proceeds Calculator

Name: Net proceeds — BC home seller calculator
Author: Bronson Job PREC

What a BC seller actually walks away with once mortgage payout, commission, GST on commission, legal, prorated adjustments, and the BC Home Flipping Tax (where applicable) come off the sale price.

Last reviewed June 10, 2026 by Bronson Job PREC, REALTOR®Sources: BC.gov.ca, CRA, BCFSACC BY 4.0How we verify

After commission, payoff, and adjustments, you'd net $747,100 on a $1,500,000 sale.

Calculate

Sale priceCurrent mortgage balancePrepayment penalty

How is this typically calculated?

Variable-rate mortgages: 3 months of interest at the contract rate. Formula: balance × rate × 0.25. On a $500,000 balance at 5.5%, that’s about $6,875.

Fixed-rate mortgages: the greater of 3 months’ interest OR the Interest Rate Differential (IRD). IRD compares your contract rate to the lender’s current posted rate for a term matching your remaining term, then charges the difference for the remaining months. Lenders calculate IRD differently — call your lender for the binding figure.

The number you enter here is added directly to the mortgage payout. Always confirm with your lender before relying on this estimate.

Total realtor commissionBronson's structure: 7% on first $100K + 2.50% on the balance at this price ($42,000). Follows the sale price automatically; type your own figure to override. . The remainder rate slides from 3% (≤$500K) to 2.5% (≥$800K). Commissions are negotiable under the Real Estate Services Rules.Legal / notary discharge feeSeller credits buyer for taxes / strata / utilities owedSeller-side adjustment — the buyer will pay these but they cover the period before completion when the seller still owned the property. Sign convention: positive number REDUCES the trust cheque. (Closing-Day Cash uses the buyer-reimburses-seller convention; the same dollar number can appear on both sides.)Marketing costs (optional)

Tax treatment

Was this your principal residence for every year you owned it? If yes, the federal Principal Residence Exemption (PRE) applies and the capital gain is tax-free; how to actually claim the PRE on the T2091 + Schedule 3 of your T1 return is covered in our PRE guide. If no (rental, recreational, second home), 50% of the gain is added to your taxable income for the year — /codex#ca.capital_gains.inclusion_rate.

Adjusted cost base (purchase + improvements)Your marginal tax rate (combined fed+BC, %)

BC Home Flipping Tax (if held under 2 years)

Purchase dateCompletion date

Trust-account cheque (what hits your bank)

$747,100

Sale price: $1,500,000
Less: mortgage payout (balance + penalty): −$705,000
Less: realtor commission: −$42,000
Less: GST on commission (5%): −$2,100
Less: legal / notary: −$800
Less: tax / strata / utility adjustments: −$1,500
Less: marketing: −$1,500

Estimate only. Confirm with a licensed professional before relying on this number.

Your notary's trust statement is binding. Capital gains, BC Home Flipping Tax, and Principal Residence Exemption treatment depend on facts only you and your accountant can verify — capital gains tax is paid via your T1 return for the year of disposition (April of the following year), not at completion. Commission is shown using Bronson's standard sliding-scale structure (7% on first $100K + 3% sliding to 2.5% on the remainder); commissions are negotiable under the Real Estate Services Rules.

How we verify →

Not tax advice. CRA treatment of capital gains and the Principal Residence Exemption depends on your specific situation — speak with a CPA.

Show the math9 steps

Step	Amount
Sale price	$1,500,000.00
Less: mortgage balance payout	-$700,000.00
Less: prepayment penalty (3-month interest OR IRD; ask lender)	-$5,000.00
Less: realtor commission (Bronson’s structure; negotiable)	-$42,000.00
Less: GST on commission (5%)	-$2,100.00
Less: legal / notary discharge fee	-$800.00
Less: property-tax / utility / strata adjustments to buyer	-$1,500.00
Less: marketing costs (staging, photos, ads)	-$1,500.00
Trust-account cheque (what hits your bank)	$747,100.00
Total	$747,100.00

Computed from the BC Real Estate Codex · CC BY 4.0

Try a typical scenario

Where this fits in your selling journey

Net ProceedsTrust-account cheque
Move upSell + buy bigger Move downSell + buy smaller

Worked example — White Rock detached, $2.4M, principal residence, 8 years

A White Rock detached selling at $2,400,000 with a $900,000 mortgage outstanding (variable, $4,500 prepayment penalty). Bronson’s commission structure on $2.4M is $64,500 (7% × $100K + 2.5% × $2.3M). GST on commission is $3,225. Legal $800, adjustments $2,000, no marketing. Held 8 years as principal residence — no BC Flipping Tax, no capital-gains tax.

Trust-account cheque: $1,424,975. The gross figure of $2.4M − $900K = $1,500,000 is $75,025 higher. That gap is commission + GST ($67,725) plus prepayment penalty, legal, and adjustments.

Same property treated as a rental (held 8 years, ACB $1.6M): gross gain $730K, taxable gain $365K (50% inclusion), at a 40% marginal tax rate that is $146,000 in capital gains tax. After-tax net proceeds: ~$1.28M.

Common questions about net proceeds at sale

How is BC realtor commission calculated?
The historical default is 7% on the first $100,000 plus a percentage on the remainder. Bronson's structure slides from 3% on the remainder at ≤$500K, to 2.5% at ≥$800K (linear in between). GST (5%) is charged on top of the commission. All of this is fully negotiable under the BCFSA Real Estate Services Rules — the input field above is editable.
When do I pay capital gains tax?
Capital gains tax is NOT paid at completion — your notary doesn't withhold it. It's owed via your personal T1 tax return for the year of disposition, payable by April 30 of the following year. The trust-account cheque above is what hits your bank account; budget for the capital gains tax separately as a tax-return obligation.
What is the Principal Residence Exemption?
The PRE eliminates capital gains tax on a home that was your principal residence for every year you owned it. If it was your principal residence for some but not all years, a partial PRE applies (years-as-PR ÷ total-years-owned). For partial-PRE math or rental-property scenarios, this calculator treats the home as either fully PR or fully non-PR — speak with a CPA for the partial case.
What is the BC Home Flipping Tax?
A provincial tax (effective Jan 1, 2025) on profits from selling within 730 days of purchase. The rate is 20% for sales within 365 days, sliding linearly to 0% at 730 days. Owner-occupiers held ≥365 days can deduct up to $20K. It's on top of capital gains tax. The federal CRA anti-flipping rule also applies and disqualifies PRE on sales within 365 days unless a life-event exception applies (death, divorce, job relocation, disability, etc.).
How is the prepayment penalty calculated?
Variable-rate mortgages: 3 months of interest at the contract rate (balance × rate × 0.25). Fixed-rate mortgages: the greater of 3 months' interest OR the Interest Rate Differential (IRD), which compares your contract rate to the lender's current posted rate for a term matching your remaining term. IRD calculation varies by lender — call yours for the binding figure before listing.
Is GST charged on commission?
Yes — 5% federal GST on the gross commission. On a $50,000 commission, that's $2,500 of GST collected by the brokerage and remitted to CRA. The calculator surfaces this as a separate line. Some commercial sellers can claim GST input tax credits; consult your CPA for that case.

Bronson Job PRECREALTOR® · Royal LePage Ben Gauer & AssociatesGVR Member #6015742 · FVREB Member #FJOBBR · Royal LePage Top 35 Under 35 (2021) · Royal LePage Red Diamond Award

Sources: BC Government

Verified sources (2)· re-verified 2026-06-04Click to expand

Every claim on this page is sourced to a primary government, regulator, or industry-association URL. We re-verify quarterly; the verification dates below show when each source was last confirmed against the live government page.

BC Governmentretrieved 2026-06-04
BC Home Flipping Tax
https://www2.gov.bc.ca/gov/content/taxes/income-taxes/bc-home-flipping-tax
BC Governmentretrieved 2026-06-04
Residential Property (Short-Term Holding) Profit Tax Act, SBC 2024, c. 26
https://www.bclaws.gov.bc.ca/civix/document/id/complete/statreg/24026_01

Fact ID: bc.flipping_tax · v1View in Codex →

Spot an issue? Report an inaccuracy · How we verify

Sources: CRA · Government of Canada

Verified sources (2)· re-verified 2026-05-08Click to expand

CRAretrieved 2026-05-08
Line 12700 — Capital gains
https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/personal-income/line-12700-capital-gains.html
Government of Canadaretrieved 2026-05-08· published 2025-03-21
Government Cancels Proposed Capital Gains Inclusion Rate Increase
https://www.canada.ca/en/department-finance/news/2025/03/government-of-canada-cancels-proposed-capital-gains-inclusion-rate-increase.html

Fact ID: ca.capital_gains.inclusion_rate · v2View in Codex →

Spot an issue? Report an inaccuracy · How we verify

Sources: CRA

Verified sources (1)· re-verified 2026-05-08Click to expand

CRAretrieved 2026-05-08
Residential Property Flipping Rule
https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/personal-income/line-12700-capital-gains/principal-residence-other-real-estate/sale-your-principal-residence/residential-property-flipping-rule.html

Fact ID: ca.anti_flipping_rule · v1View in Codex →

Spot an issue? Report an inaccuracy · How we verify

Calculate

Try a typical scenario

Where this fits in your selling journey

Worked example — White Rock detached, $2.4M, principal residence, 8 years

Common questions about net proceeds at sale

Related