The Best Commission Splits for Real Estate Agents in 2026

Choosing a brokerage is one of the most significant financial decisions you'll make in your real estate career. With so many commission models available, are you confident you're maximizing your take-home pay? A high split on paper can be misleading, and the brokerage that’s perfect for a top producer might not be the right fit for a new agent. The key to building a financially rewarding career isn't just finding the highest percentage; it's about understanding the entire compensation structure and aligning it with your specific goals.

This guide breaks down everything you need to know about real estate commission structures. We will explore the different models, compare top brokerages, and provide the insights you need to choose a brokerage that balances compensation, support, and culture to set you up for lasting success in 2026 and beyond.

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Key Principles for Choosing a Brokerage

• Understand Commission Structures: Knowing the difference between fixed splits, graduated plans with commission caps, and 100% commission models is essential to accurately forecasting your potential earnings.
• Look Beyond The Split: A high commission split doesn’t always mean higher net earnings. You must factor in desk fees, franchise fees, technology costs, and commission caps to understand the full picture. A comprehensive guide to sales commissions can help you grasp these nuances.
• Evaluate Brokerage Support: The best brokerage for you offers a balance of fair compensation, valuable training, lead generation opportunities, and a supportive company culture that aligns with your career goals.
• Do Your Research: Commission structures are not always transparent and can vary by office or team. Always ask for a detailed breakdown of all potential costs before signing an agreement.

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Deconstructing Real Estate Commission Splits

A commission split is the agreed-upon division of the gross commission income (GCI) between a real estate agent and their supervising brokerage for a single transaction. Before it even gets to you, the total commission (typically 5-6% of the home's sale price) is usually split between the buyer's agent and the listing agent. Your commission split then applies to your portion of that GCI.

For example, on a $500,000 home sale with a 6% total commission ($30,000), the buyer's and seller's brokerages might each receive $15,000. If you, as the seller's agent, have a 70/30 split with your brokerage, your GCI is $15,000. You would receive $10,500 (70%), and your brokerage would retain $4,500 (30%).

Here are the most common models you'll encounter:

Fixed Percentage Splits

This is the traditional model where the commission is divided at a fixed percentage for every transaction. It’s straightforward and easy to understand.

• Common Splits: 50/50, 60/40 (agent/broker) for new agents; 70/30 or 80/20 for more experienced agents.
• Best For: New agents who benefit from the extensive training, mentorship, and brand recognition a full-service brokerage provides in exchange for a larger share of the commission.

Graduated or Tiered Splits

With a graduated plan, your share of the commission increases as you meet certain production goals throughout your anniversary year. This model rewards high performance and encourages growth.

• Example: You might start at a 70/30 split for your first $50,000 in GCI, then move to an 80/20 split until you reach $100,000 GCI, and finally achieve a 90/10 split for the remainder of the year.
• Best For: Agents who are growing their business and want their compensation structure to scale with their success.

Commission Cap System

This is one of the most popular models today. You pay a percentage split to your brokerage until you have contributed a predetermined maximum amount for the year (the "cap"). Once you hit your cap, you keep 100% of your commission on all subsequent deals for the rest of your anniversary year, though a smaller transaction fee might still apply.

• Example: A brokerage offers an 80/20 split with a $16,000 annual cap. An agent would pay 20% of their commission to the brokerage on each transaction until those payments total $16,000. After that, they earn 100% of their commission.
• Best For: Productive, full-time agents. The cap system offers the potential for unlimited earnings after the brokerage's share has been met, making it highly motivating for high achievers. For top performers, this is similar to the concept of uncapped commissions in sales.

100% Commission Plans

In this model, you keep the full commission from every sale. In exchange, you pay the brokerage a monthly "desk fee" and often a flat transaction fee per deal.

• Example: An agent pays a $500 monthly fee plus a $300 transaction fee for each closing.
• Best For: Experienced, top-producing agents or teams with a steady and predictable stream of business. The high fixed costs make this model risky for new agents or those working part-time, as you pay the fees whether you close deals or not.

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Beyond the Split: The Hidden Costs You Can't Ignore

The headline commission split is only part of the story. Your net income, or "take-home pay," is what truly matters. Several additional fees can significantly reduce your earnings. Always ask for a complete fee schedule before making a decision.

• Franchise Fees: Often 5-8% of your gross commission, paid directly to the national brand (e.g., Keller Williams, RE/MAX) before your split with the local brokerage is even calculated.
• Desk Fees: A monthly charge for office space, phone, and internet access. This can range from a few hundred to over a thousand dollars, even in non-100% commission models.
• Transaction Fees: A flat fee per closed deal, often ranging from $100 to $500, to cover administrative processing and compliance.
• Technology Fees: Monthly or annual charges for the brokerage's CRM, website, transaction management software, and other tech tools.
• Errors & Omissions (E&O) Insurance: Typically paid per transaction or as an annual fee to cover liability insurance.
• Marketing Fees: Some brokerages charge a monthly fee that contributes to a shared fund for brand advertising and marketing materials.

Example: How Fees Impact Net Earnings

In this scenario, Brokerage B's 100% commission model yields a significantly higher net income for this productive agent. However, if the agent only generated $40,000 in GCI, the high monthly fees of Brokerage B would make it a much less profitable choice. Understanding how to calculate commission rates and model different scenarios is crucial.

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Comparing Top Real Estate Brokerage Models for 2026

Every brokerage has a unique value proposition. Here’s a breakdown of the typical compensation structures at some of the leading national brands. Remember, splits and fees can vary by location and are often negotiable.

Matching the Commission Plan to Your Career Stage

The "best" compensation model is entirely dependent on your individual needs, production level, and career goals.

The New Agent: Prioritize Support Over Split

For your first year or two, your primary focus should be on learning the business, building skills, and establishing a client base. A brokerage that offers a lower split in exchange for world-class training, hands-on mentorship, and lead generation opportunities is often the wisest long-term investment. Brokerages like Keller Williams or a local Coldwell Banker franchise are structured to provide this foundational support. The slightly lower income at the start is an investment in a sustainable career.

The Part-Time Agent: Minimize Fixed Costs

If you are working in real estate part-time, your top priority should be minimizing recurring expenses. A model with high monthly desk fees can quickly erase your profits if you only close a few deals per year. Look for a brokerage with no (or very low) monthly fees, even if it means a less favorable split. A virtual brokerage or a local boutique firm might offer the best structure.

The Top Producer: Maximize Your Net with Caps or 100% Models

Once you have a consistent and high-volume business, your goal is to keep as much of your commission as possible. A brokerage with a commission cap is ideal. Once you hit the cap—which a top producer can do in the first few months of the year—the rest of your earnings are yours to keep (minus minor fees). Alternatively, a 100% commission model where you pay fixed monthly and transaction fees can also be extremely profitable, provided your deal flow is predictable. Efficiently tracking your real estate commissions becomes essential at this stage to forecast when you'll hit your cap.

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Beyond Compensation: Factors That Define the Right Brokerage

While the financial structure is critical, it's not the only thing that matters. The right brokerage will provide the resources and environment you need to thrive.

• Training and Mentorship: Does the brokerage offer structured training for new agents? Is there a mentorship program that pairs you with a seasoned veteran?
• Technology and Tools: What does the tech stack include? A modern CRM, a user-friendly transaction management system, and automated marketing tools can save you dozens of hours a month.
• Lead Generation: Does the brokerage provide leads, or are you entirely on your own? Some offer floor time, website leads, or partnerships that can help supplement your own prospecting efforts.
• Brand Recognition and Culture: A well-respected brand can open doors with clients. Equally important is the office culture. Is it collaborative and supportive, or is it a cutthroat "every agent for themselves" environment? Find a place where you feel you belong.

Choosing a real estate brokerage is a decision that should be based on a holistic view of your career. Look past the allure of a high split and analyze the complete financial picture, including all fees and caps. More importantly, evaluate the non-financial support systems—training, technology, and culture—that will empower you to reach your full potential. The best commission structure is the one that not only pays you well but also invests in your long-term success.

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Frequently Asked Questions

Which real estate company has the best commission split?

There is no single "best" commission split; it depends entirely on the agent's profile. A new agent will likely find the best value at a brokerage like Keller Williams, which offers a capped split alongside extensive training. An established top producer, however, will net more income at a 100% commission brokerage like RE/MAX or a capped-split model like eXp Realty.

How do real estate commission splits work?

The total commission from a sale is first divided between the buyer's and seller's brokerages. The commission split then determines how that portion is divided between an agent and their own brokerage. For instance, on an 80/20 split, the agent receives 80% of their brokerage's commission, and the brokerage retains 20% to cover overhead, support, and profit.

Is a higher commission split always better?

No. A high split can be misleading if it comes with high monthly desk fees, transaction fees, and franchise fees that erode your net income. A 95/5 split might sound great, but if it requires a $1,500 monthly fee, an agent with lower production may earn less than they would on a 70/30 split with no monthly fees. It's crucial to analyze the complete commission plan and calculate your potential take-home pay.