How much do real estate agents make per year?

The national median real estate agent salary is $55,000 in 2026, but this average is heavily skewed. Part-time agents and new licensees often earn $20,000–$35,000. Full-time agents with 5+ years average $75,000–$100,000. Top producers earning $200,000–$500,000+ pull up averages. Most agents are independent contractors paid purely on commission — typically 2.5–3% per side of a transaction.

Which state pays real estate agents the most?

New York pays real estate agents the most at $105,000 average, followed by California ($92,000), Connecticut ($84,000), Massachusetts ($82,000), and Alaska ($79,000). High home prices mean larger commissions per transaction, driving higher average income in expensive markets.

Which state pays real estate agents the least?

Mississippi pays real estate agents the least at $32,000 average, followed by West Virginia ($33,000), Arkansas ($34,000), Kentucky ($35,000), and Alabama ($36,000). Low home prices mean smaller commissions — a 3% commission on a $150,000 home is only $4,500.

How do real estate agents get paid?

Most real estate agents are paid on commission — typically 2.5–3% of the sale price per side (buyer's agent and seller's agent each earn their side). The commission is split with their brokerage, often 50/50 for new agents, moving to 70/30 or 80/20 as production increases. On a $400,000 home, a 3% commission is $12,000 — split with the brokerage means $6,000–$8,400 to the agent.

How much does it cost to become a real estate agent?

Total startup costs are typically $1,000–$3,500 including: pre-license education ($200–$900), license exam fee ($50–$250), license application ($50–$300), NAR membership ($150+), MLS access ($300–$1,000/year), and Errors & Omissions insurance ($200–$500/year). Many new agents also invest in marketing ($500–$2,000). Most states require 60–150 hours of pre-license coursework.

Real Estate Agent Salary by State 2026: From $32K in Mississippi to $105K in New York

The national median real estate agent salary is $55,000 in 2026 — but this figure masks extreme variance. State, home prices, and time invested determine whether you earn $20,000 or $500,000. Here’s the complete breakdown.

Real Estate Agent Salary by State 2026 — All 50 States

Rank	State	Avg Salary	Starting Salary	CoL-Adjusted
1	New York	$105,000	$38,000	$85,400
2	California	$92,000	$32,000	$66,200
3	Connecticut	$84,000	$30,000	$75,700
4	Massachusetts	$82,000	$30,000	$69,500
5	Alaska	$79,000	$28,000	$70,200
6	Colorado	$78,000	$28,000	$69,900
7	Hawaii	$76,000	$27,000	$61,300
8	Washington	$75,000	$27,000	$68,200
9	New Jersey	$73,000	$26,000	$65,200
10	Oregon	$70,000	$25,000	$61,900
11	Maryland	$69,000	$25,000	$60,000
12	Virginia	$68,000	$24,000	$66,000
13	Nevada	$67,500	$24,000	$65,700
14	Arizona	$67,000	$24,000	$65,700
15	Texas	$66,000	$23,000	$66,700
16	Florida	$65,500	$23,000	$65,500
17	Idaho	$65,000	$23,000	$68,100
18	Minnesota	$64,000	$23,000	$64,000
19	Georgia	$63,500	$22,000	$64,100
20	Utah	$63,000	$22,000	$61,600
21	North Carolina	$62,000	$22,000	$66,500
22	Delaware	$61,500	$22,000	$61,000
23	Pennsylvania	$61,000	$22,000	$64,900
24	Illinois	$60,500	$21,000	$62,400
25	Michigan	$60,000	$21,000	$63,200
26	South Carolina	$59,000	$21,000	$62,800
27	Wisconsin	$58,500	$21,000	$60,700
28	Tennessee	$58,000	$21,000	$61,900
29	Ohio	$57,500	$20,000	$62,000
30	Montana	$57,000	$20,000	$61,800
31	New Hampshire	$56,500	$20,000	$52,300
32	Vermont	$56,000	$20,000	$53,800
33	Indiana	$55,500	$20,000	$60,300
34	Rhode Island	$55,000	$19,000	$49,100
35	Maine	$54,000	$19,000	$55,700
36	Missouri	$53,500	$19,000	$59,600
37	Nebraska	$53,000	$19,000	$57,600
38	Kansas	$52,500	$18,000	$57,300
39	North Dakota	$52,000	$19,000	$56,300
40	Iowa	$51,500	$18,000	$56,600
41	Oklahoma	$50,500	$18,000	$55,900
42	New Mexico	$50,000	$18,000	$53,800
43	South Dakota	$49,000	$18,000	$53,300
44	Wyoming	$48,500	$18,000	$53,700
45	Louisiana	$46,000	$17,000	$49,000
46	Alabama	$36,000	$15,000	$39,600
47	Kentucky	$35,000	$15,000	$39,500
48	Arkansas	$34,000	$14,000	$38,300
49	West Virginia	$33,000	$14,000	$38,800
50	Mississippi	$32,000	$13,000	$36,200
—	National	$55,000	$20,000	—

Source: BLS Occupational Employment Statistics, 2025–2026 estimates. Figures cover Real Estate Sales Agents (SOC 41-9022). Most agents are paid on commission only; BLS surveys may undercount income of top producers. CoL-adjusted figures use regional cost-of-living indices.

How Real Estate Commission Works (Worked Example)

On a $400,000 home sale with 6% total commission:

Party	Commission	Amount
Total commission	6% of $400,000	$24,000
Buyer’s agent side	3%	$12,000
Seller’s agent side	3%	$12,000
Agent share (70/30 split with broker)	70% of their side	$8,400
Broker share	30%	$3,600

Sell 6 homes like this and you gross $50,400 before expenses. Top producers in expensive markets close 20–40+ transactions per year.

Real Estate Agent Salary by Experience

Experience Level	Avg Annual Income	Transactions/Year
New licensee (year 1)	$22,000	3–6
Active agent (2–4 years)	$45,000	8–14
Established agent (5–9 years)	$75,000	15–24
Top producer (10+ years)	$125,000	25–40
Mega-producer / team leader	$300,000+	50–150+

Real Estate Agent vs. Broker Salary

Role	Avg Salary	Additional Requirements
Sales Agent	$55,000	State license (60–150 hrs education)
Associate Broker	$72,000	2–3 years experience + broker exam
Managing Broker	$88,000	Manage an office, additional licensing
Independent Broker	$95,000–$300,000+	Own your brokerage, keep full commission

How to Increase Your Real Estate Agent Income

Strategy	Potential Annual Increase
Focus on luxury / higher-priced homes	+$30,000–$100,000
Build a team (earn on agents’ transactions)	+$50,000–$200,000+
Earn broker’s license (keep full commission)	+$15,000–$40,000
Add property management revenue	+$15,000–$50,000
Target investor clients (higher volume)	+$20,000–$60,000
Relocate to high-price market (NYC, LA, SF)	+$30,000–$80,000
Build referral / repeat business systematically	+$10,000–$40,000

Sources

Bureau of Labor Statistics. “May 2025 OES — Real Estate Sales Agents (41-9022).” bls.gov/oes/current/oes419022.htm
Bureau of Labor Statistics. “Occupational Outlook Handbook — Real Estate Brokers and Sales Agents.” bls.gov/ooh/sales/real-estate-brokers-and-sales-agents.htm

Written by WealthVieu

WealthVieu researches and writes data-driven personal finance guides using primary sources including the IRS, Bureau of Labor Statistics, Federal Reserve, and Census Bureau.

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