How Much Do Real Estate Agents Make in Top States
Discover exactly how much real estate agents earn in 2026, including commission structures, hourly vs. salary breakdowns, and income potential by state. Learn how realtors get paid and what affects your earning potential.
If you’re considering a career in real estate, understanding the earning potential is crucial for making an informed decision.
One of the most common questions aspiring agents ask is “how much do real estate agents make?” The answer varies significantly based on location, experience, commission structure, and market conditions.
Unlike traditional salaried positions, most real estate agents work on a commission-based model, which means your income directly correlates with your sales performance.
This guide breaks down everything you need to know about real estate agent compensation in 2025.
Real Estate Agent Salary: National Averages
According to the Bureau of Labor Statistics and industry data, the median annual income for real estate agents in 2025 ranges between $49,000 and $61,000. However, this number only tells part of the story. Top-performing agents regularly earn six figures, while newer agents may earn significantly less during their first year.
| Experience Level | Annual Income Range | Median Income |
| Entry Level (0-2 years) | $25,000 – $50,000 | $35,000 |
| Mid-Level (3-5 years) | $50,000 – $85,000 | $65,000 |
| Experienced (5-10 years) | $75,000 – $150,000 | $95,000 |
| Top Producers (10+ years) | $150,000 – $500,000+ | $200,000+ |
These figures represent gross income before expenses. Real estate agents typically cover costs like marketing, MLS fees, brokerage splits, and professional development, which can reduce net income by 20-40%.
How Do Realtors Get Paid? Understanding Commission Structures
Understanding how realtors get paid is essential for anyone entering the industry. Unlike traditional employees who receive regular paychecks, real estate agents earn money through commissions on completed transactions.
The Commission Split Breakdown
When a home sells, the total commission (typically 5-6% of the sale price) gets divided multiple ways:
- Listing Brokerage: Receives half the commission (2.5-3%)
- Buyer’s Brokerage: Receives the other half (2.5-3%)
- Individual Agents: Split their share with their brokerage (typically 50-80%)
For example, on a $400,000 home sale with a 6% commission, the total commission is $24,000.
If split evenly between brokerages ($12,000 each), and an agent has a 70/30 split with their brokerage, the agent earns $8,400 from that single transaction.
Do Real Estate Agents Get Paid Hourly?
A common question from those exploring real estate careers is “do real estate agents get paid hourly?”
The short answer is no—the vast majority of real estate agents are independent contractors who work on commission only.
Why Commission-Based Pay Dominates
- Unlimited Earning Potential: Your income scales with your effort and success
- Flexibility: Work your own schedule and build your business
- Tax Benefits: Independent contractors can deduct business expenses
- Performance-Based: High performers aren’t limited by salary caps
Some brokerages offer salaried positions with smaller commission percentages, but these are relatively rare. Salaried positions may be available for agents working in property management, corporate relocation services, or as in-house agents for home builders.
How Much Do Real Estate Agents Make Per Sale?
Your earnings per transaction depend on the home’s sale price and your commission agreement. Here’s what agents typically earn at different price points:
| Home Price | Agent Side (3%) | 70/30 Split | 80/20 Split |
| $250,000 | $7,500 | $5,250 | $6,000 |
| $400,000 | $12,000 | $8,400 | $9,600 |
| $600,000 | $18,000 | $12,600 | $14,400 |
| $1,000,000 | $30,000 | $21,000 | $24,000 |
Real Estate Agent Salary by State: Top-Paying Markets
Location significantly impacts earning potential.
Agents in high-cost markets with expensive home prices tend to earn more per transaction. Here are some of the top-paying states for real estate agents:
Highest-Paying States
- New York: Average $102,310 annually
- Massachusetts: Average $84,180 annually
- Connecticut: Average $79,780 annually
- Alaska: Average $79,360 annually
- Colorado: Average $76,850 annually
Florida Real Estate Agent Income
Florida remains one of the most active real estate markets in the country.
How much do realtors make in Florida? The average Florida real estate agent earns between $55,000 and $85,000 annually, with top performers in Miami, Naples, and Palm Beach exceeding $200,000.
If you’re interested in starting your career in Florida, learn how to become a realtor in Florida through our comprehensive guide.
Texas Real Estate Agent Earnings
Texas offers strong earning potential due to no state income tax and a booming housing market. Real estate agents in Texas earn an average of $60,000 to $90,000, with Dallas, Austin, and Houston agents often surpassing $100,000.
How Much Do Real Estate Brokers Make?
Brokers typically earn more than agents due to their additional responsibilities and revenue streams. Real estate brokers can earn income through:
- Their own transactions
- Commission splits from agents they supervise
- Brokerage fees and desk fees
- Property management income
The average managing broker earns between $75,000 and $150,000 annually, while broker-owners of successful firms can earn $200,000 to $500,000 or more.
Key Factors That Affect Your Real Estate Income
Market Conditions
Hot markets with low inventory and high demand create more opportunities. Understanding whether real estate is a good career in your area requires analyzing local market trends.
Specialization
Agents who specialize often earn more. Consider focusing on luxury homes, commercial properties, investment properties, or specific neighborhoods to command higher commissions.
Marketing Skills
Your ability to generate leads and market properties directly impacts income. Learn effective real estate marketing ideas and video marketing strategies to stand out.
Education and Certifications
Continuing education and designations like ABR, CRS, and GRI can justify higher commission rates and attract more clients. Understanding what you learn in real estate school builds the foundation for your success.
Ready to Start Your Real Estate Career?
The earning potential in real estate is significant for motivated individuals. Your success depends on your market knowledge, work ethic, and business skills.
To get started, you’ll need to complete pre-licensing education and pass your state exam. TrainAgents offers accredited real estate courses in multiple states:
- Texas Real Estate Courses
- Florida Real Estate Courses
- Oregon Real Estate Courses
- Washington Real Estate Courses
- California Real Estate Courses
- Georgia Real Estate Courses
Explore the pros and cons of being a real estate agent and review career growth opportunities to make an informed decision about your future.
Frequently Asked Questions
Do realtors get paid for showing houses?
Realtors typically don’t get paid for showing houses. They only earn commission when a sale closes. This means an agent might show dozens of homes before earning anything from a particular client.
How much do part-time real estate agents make?
Part-time agents typically earn $20,000 to $40,000 annually, though this varies widely. Part-time status can make it harder to build momentum and client relationships.
Can you make $1 million as a real estate agent?
Yes, though it requires significant volume in high-end markets or building a successful team. Top 1% of agents regularly achieve seven-figure incomes, particularly in luxury markets.
When do real estate agents get paid after closing?
Agents typically receive their commission check within a few days of closing, though some brokerages pay immediately. The exact timing depends on your brokerage’s policies.
