How is BC realtor commission calculated?

The usual structure is 7% on the first $100,000, then a smaller percentage on the rest. Bronson's rate on the rest runs from 3% on a home under $500,000 down to 2.5% on one over $800,000, sliding in between. Sales tax of 5% is added on top of the commission itself. All of it is negotiable — that is not a courtesy, it is the rule in BC — and the field above is editable so you can put in whatever you have actually agreed to.

When do I pay capital gains tax?

Not on closing day. Your notary does not hold any of it back. It goes on your personal tax return for the year you sold, and it is due by April 30 the following year. So the figure above is genuinely what lands in your account — just remember a chunk of it is spoken for.

What is the Principal Residence Exemption?

If a home was the one you lived in for every year you owned it, you pay no tax on the profit. If you lived there for some years and rented it out for others, you get a share of that break — roughly the years you lived there divided by the years you owned it. This calculator handles the two clean cases, all or nothing. If yours is a mix, an accountant needs to do the math.

What is the BC Home Flipping Tax?

A BC tax that started January 1, 2025. If you sell within two years of buying, you pay a share of the profit: 20% in the first year, then shrinking month by month until it hits zero at the two-year mark. If you lived there and owned it more than a year, the first $20,000 of profit is exempt. It comes on top of the regular tax on the profit. And if you sell inside the first year, a separate federal rule can take away the tax-free treatment you would normally get on your own home — unless a death, a separation, a job move or a disability forced the sale.

Is GST charged on commission?

Yes. Commission is a service, so 5% sales tax is added to it — on a $50,000 commission that is $2,500. The tax is on the commission, not on the home. Selling a used home is not taxed. It shows as its own line above so you can see it.

If you’re selling

BC Net Proceeds Calculator

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

What you actually keep after paying off your mortgage, the commission and the tax on it, your lawyer, and anything you owe the buyer.

Last reviewed June 10, 2026 by Bronson Job PREC, REALTOR®Sources: BC government, Canada Revenue Agency, BC Financial Services AuthorityCC BY 4.0How we verify

Sell at $1,500,000 and you keep $743,975. About $56,025 goes to selling costs, on top of paying off your mortgage.

Calculate

Sale priceWhat you still owe

I don’t know what I still owe

BorrowedYears agoRate %

An estimate, not your payout. Your lender’s figure is the one that settles — ask them before you rely on it.

These two are starting points, not estimates of your home — type your own. If you’re not sure what yours would sell for, see what’s been selling near you. Your lender can give you the exact payout balance.

I lived in this home the whole time I owned it. If that’s true, you pay no tax on the profit. If it was a rental, a cabin or a second home, half the profit gets added to your income for the year — how that works.

Adjust the details — commission, penalty, lawyer, and the rest

Penalty for breaking your mortgage early

How do I work this out?

If your rate is variable, it’s three months of interest. Multiply what you owe by your rate, then divide by four. On $500,000 at 5.5%, that’s about $6,875.

If your rate is fixed, it’s three months of interest or a bigger calculation based on how far your rate sits from today’s rates — whichever costs more. That second one can run into the tens of thousands, and every lender works it out differently.

This is the number people get wrong most often. Phone your lender and ask for your payout penalty in writing before you count on any estimate.

Your mortgage rate, if you want a rough figure

Three months of interest on $700,000 at 5.5% is about $9,625. If your rate is fixed, the real penalty could be several times this. Variable, and this is usually it.

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.Lawyer or notaryWhat you owe the buyer for taxes and billsYour property taxes, strata fees and utility bills get split on the day the sale closes. Anything you still owe for the time you lived there comes off your cheque. Put in what you owe — if you’ve prepaid past the closing date, the buyer pays you back instead, so enter that as a negative number.Photos, staging and marketing

If it wasn’t your own home

What you paid for it, plus any big improvementsYour tax rate

If you’ve owned it less than two years

When you bought itWhen the sale closes

What lands in your bank account

$743,975

If it sells for more, or for less

Five percent either way is about one price change.

If it sells for 5% less$1,425,000$670,944
At your price$1,500,000$743,975
If it sells for 5% more$1,575,000$817,006

The lowest you could sell for and still break even

$736,694

Below this, you’d have to bring your own money to closing. It covers paying off your mortgage and every cost of selling — nothing left over.

To hand your notary, your lender, or your accountant.

What a different commission would leave

Commission is negotiable, always has been. Here is the same sale at three rates.

1% listing side$15,000 commission$772,325
2% listing side$30,000 commission$756,575
Bronson's structure$42,000 commission$743,975

A lower rate is not automatically a better outcome — what the listing brokerage does for it, and what is offered to the buyer’s agent, both move the final number. But the arithmetic is the arithmetic, and you should see it.

When you actually get it

Closing day$743,975 lands in your account, usually the same day or the next. Your notary pays off the mortgage and the commission first and sends you the rest.

Sale price: $1,500,000
Less: paying off your mortgage (plus penalty): −$709,625
Less: commission: −$42,000
Less: 5% sales tax on the commission: −$2,100
Less: lawyer or notary: −$800
Less: taxes and bills you owe the buyer: −$1,500

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

The final statement from your notary is the one that counts. Whether you owe tax on the profit depends on facts only you and your accountant can confirm, and that tax is due with your tax return the following April, not on closing day. Commission here uses Bronson's usual structure — 7% on the first $100,000, then between 3% and 2.5% on the rest. It's negotiable, and the field is editable.

How we verify →

This isn’t tax advice. Whether you owe tax on the profit depends on your own situation — ask an accountant.

Show the math8 steps

Step	Amount
Sale price	$1,500,000.00
Less: paying off your mortgage	-$700,000.00
Less: penalty for breaking your mortgage early (ask your lender)	-$9,625.00
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
What lands in your bank account	$743,975.00
Total	$743,975.00

Computed from the BC Real Estate Codex · CC BY 4.0

Try a typical scenario

Where this fits in your selling journey

Net ProceedsWhat you keep
MovingSell one, buy another

Common questions about net proceeds at sale

How is BC realtor commission calculated?
The usual structure is 7% on the first $100,000, then a smaller percentage on the rest. Bronson's rate on the rest runs from 3% on a home under $500,000 down to 2.5% on one over $800,000, sliding in between. Sales tax of 5% is added on top of the commission itself. All of it is negotiable — that is not a courtesy, it is the rule in BC — and the field above is editable so you can put in whatever you have actually agreed to.
When do I pay capital gains tax?
Not on closing day. Your notary does not hold any of it back. It goes on your personal tax return for the year you sold, and it is due by April 30 the following year. So the figure above is genuinely what lands in your account — just remember a chunk of it is spoken for.
What is the Principal Residence Exemption?
If a home was the one you lived in for every year you owned it, you pay no tax on the profit. If you lived there for some years and rented it out for others, you get a share of that break — roughly the years you lived there divided by the years you owned it. This calculator handles the two clean cases, all or nothing. If yours is a mix, an accountant needs to do the math.
What is the BC Home Flipping Tax?
A BC tax that started January 1, 2025. If you sell within two years of buying, you pay a share of the profit: 20% in the first year, then shrinking month by month until it hits zero at the two-year mark. If you lived there and owned it more than a year, the first $20,000 of profit is exempt. It comes on top of the regular tax on the profit. And if you sell inside the first year, a separate federal rule can take away the tax-free treatment you would normally get on your own home — unless a death, a separation, a job move or a disability forced the sale.
How is the prepayment penalty calculated?
If your rate is variable, it is three months of interest — what you owe, times your rate, divided by four. If your rate is fixed, it is three months of interest or a bigger calculation based on how far your rate sits from today's rates, whichever costs more. That second one can run into the tens of thousands, and every lender works it out differently. Phone yours and get the number in writing before you list.
Is GST charged on commission?
Yes. Commission is a service, so 5% sales tax is added to it — on a $50,000 commission that is $2,500. The tax is on the commission, not on the home. Selling a used home is not taxed. It shows as its own line above so you can see it.

Bronson Job PRECREALTOR® · Momentum Realty Inc.GVR Member #6015742 · FVREB Member #FJOBBR

Sources: BC Government

Verified sources (2)· re-verified 2026-08-02Click 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 2026-07-30
BC Home Flipping Tax
https://www2.gov.bc.ca/gov/content/taxes/income-taxes/bc-home-flipping-tax
BC Governmentretrieved 2026-08-02
Residential Property (Short-Term Holding) Profit Tax Act
https://www.bclaws.gov.bc.ca/civix/document/id/complete/statreg/24014

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 2026-08-02Click 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 2026-08-02· published 2025-03-21
What’s new for capital gains — inclusion rate stays at one-half
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/whats-new-capital-gains.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 2026-08-02Click to expand

CRAretrieved 2026-08-02
Principal residence and other real estate (flipped property rules)
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.html

Fact ID: ca.anti_flipping_rule · v1View in Codex →

Spot an issue? Report an inaccuracy · How we verify

Calculate

If it sells for more, or for less

The lowest you could sell for and still break even

What a different commission would leave

When you actually get it

Try a typical scenario

Where this fits in your selling journey

Common questions about net proceeds at sale

Related