Question 1

How much is the real estate broker commission in Quebec?

Accepted Answer

The commission is typically between 4% and 5% of the sale price, plus taxes (GST 5% and QST 9.975%). For example, a 5% commission on a $500,000 sale is $25,000 plus $3,744 in taxes, totaling $28,744.

Question 2

Is the broker commission negotiable?

Accepted Answer

Yes, the commission is negotiable in Quebec. The rate varies by market, property type, and broker. However, a lower commission may mean fewer services or less motivation for the buyer's broker.

Question 3

How is the commission split between brokers?

Accepted Answer

The total commission is typically split 50/50 between the listing broker and the buyer's broker. For example, a 5% commission would give 2.5% to each broker, who then shares with their agency.

Question 4

Who pays taxes on the broker commission?

Accepted Answer

The seller pays taxes (GST and QST) on the broker commission. Taxes are added on top of the negotiated commission percentage. GST is 5% and QST is 9.975%, for a total of approximately 15% in taxes on the commission.

Question 5

Can I deduct the broker commission from my taxes?

Accepted Answer

If the property sold is not your primary residence (e.g., a rental property), the broker commission can be deducted as a selling expense to reduce taxable capital gains. For your primary residence, the sale is tax-exempt.

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