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Tax help for real estate agents

Big closings, no withholding. Catch up.

Real estate agent in a blazer placing a sold rider on a yard sign, front lawn
Updated October 8, 20266 sourcesFact checked
531,000About 531,000 real estate broker and sales agent jobs (530,600) (2025)Source: BLS OOH: Real Estate Brokers and Sales Agents

Self employment tax calculator

Your profit in. Your quarterly number out.

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Penalty calculator

See what late filing and late paying add.

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Why it matters

Real estate pay comes in big, uneven checks. No tax is taken out, and a slow year can follow a big one.

The IRS treats most licensed agents as self employed, so estimates are on you.

If you owe, a tax pro can help you plan around your closings.

  • Licensed real estate agents paid for sales, not hours, are treated as self employed for federal tax. That means no withholding.
  • The IRS business mileage rate is 76 cents a mile from July 1, 2026. Your mileage log is what proves it.
  • A home office deduction needs a part of your home that you use only for the business, on a regular basis.
  • You generally must pay estimated tax if you expect to owe $1,000 or more when you file.
  • Self employment tax is 15.3%: 12.4% for Social Security and 2.9% for Medicare. No boss pays half for you.

What a tax pro may ask you

Have these ready. Clear answers help a tax firm see what fits you.

  • How many closings you had each year
  • If you paid any estimated tax
  • Which tax years you have not filed
  • The notice code in the top right corner of any IRS letter

Common questions

Are real estate agents employees?

For federal tax, licensed agents paid for sales, not hours, are treated as self employed.

Can I deduct my driving to showings?

Business miles may count. The IRS rate is 76 cents a mile from July 1, 2026. Keep a log.

Can a tax pro stop IRS collection?

They can ask the IRS for a payment plan, a hold, penalty relief or an offer, based on your facts. Results depend on your situation. Not every case qualifies.

Ways to get help

Offer in compromise: Ask the IRS to take less than you owe. Hard to get.Payment plan: Pay what you owe a little each month.Not collectible: The IRS pauses collection while money is too tight.What happens if I owe the IRS and can't pay?What happens if I owe back taxes?I owe the IRS money. What do I do first?

Results depend on your situation. Not every case qualifies.

Sources

  1. IRS: Statutory nonemployees
  2. IRS: Standard mileage rates
  3. IRS: Home office deduction
  4. IRS: Estimated taxes
  5. IRS: Self employment tax
  6. BLS OOH: Real Estate Brokers and Sales Agents
Other jobs

We help a lot of jobs

Self employed graphic designer at a home studio desk with a sketch tabletSelf employedNo withholding means the tax bill comes all at once.Gig worker in a hoodie with a delivery bag on a bike at a city cornerGig workersApp pay is taxable, 1099 or not.Rideshare driver in his 40s leaning on his clean sedan at a curb, phone in handRideshare driversMiles matter when the 1099 comes.Delivery driver carrying a box up porch steps, brown jacket, smilingDelivery driversDelivery pay, no withholding.Owner operator truck driver standing by the cab of his semi at a truck stop at dawnOwner operatorsYour own truck, your own Form 2290.

Run the numbers with our free tax tools, like the penalty and payment plan math.

See your options

A few questions. A tax pro calls you back.

Free tools: penalty calculator, 10 year clock, IRS offer data

Free to use. Not the IRS or any government agency. Results depend on your situation. Not every case qualifies.