| Rank | State | Median agent wage (USD) |
|---|
| 1 | Arkansas | $38,180 |
| 2 | Mississippi | $39,550 |
| 3 | Kansas | $39,770 |
| 4 | Idaho | $39,820 |
| 5 | Missouri | $43,960 |
| 6 | Texas | $45,740 |
| 7 | Louisiana | $45,850 |
| 8 | Hawaii | $46,220 |
| 9 | Ohio | $46,240 |
| 10 | Tennessee | $46,250 |
Why most agents earn less than the median
Real estate commission is a percentage of transaction value. A typical residential commission runs 5% to 6%, split between the listing and buy-side brokerages, then between the broker and the individual agent. The math at a typical commission split looks like this: a $400,000 home sale generates $20,000 in gross commission; after the 50/50 or 60/40 broker split, the agent receives $10,000 to $12,000.
The bimodal distribution happens because a small share of agents handle many transactions while the rest do few. NAR's member profile consistently shows the median agent closes roughly 7 to 12 transactions per year. The top quintile does 30+, sometimes hundreds. Apply the math above and the median agent's gross commissions before broker split might total $80,000 to $140,000 per year, leaving much less in net take-home after expenses and taxes.
How broker splits affect take-home pay
Broker splits are negotiable and structure your career economics. Newer agents typically start at 50/50 in favor of the agent or worse. Established producers can earn 70/30 or higher. Some teams operate on tiered splits with production bonuses. Caps and desk fees are common in larger brokerages — you keep a higher percentage after you pay a fixed annual fee.
The split matters more than commission rate for most agents because it shapes every transaction. Negotiating from 60/40 to 70/30 on $100,000 in annual commissions moves you from $60,000 to $70,000 in pre-tax income before any other change.
Are employed agents better paid?
Employed agent roles at brokerages like Redfin, Compass, and eXp pay base salaries plus benefits, sometimes with commission upside. Redfin's employed agents historically earned less per transaction than independent contractors but received a base salary, health benefits, and equity grants. The trade-off is upside compression for downside protection. Industry surveys suggest employed agent roles earn $50,000 to $90,000 in total comp at the median, with a clearer career path but lower ceiling.
Frequently asked questions
(See FAQs above for the questions and answers.)
Methodology
Salary figures are the median and percentile range for Real Estate Sales Agents (SOC 41-9022) from the BLS OEWS May 2025 release. Commission math assumes a 5% to 6% commission split two ways, then a 50/50 to 70/30 broker split. Take-home estimates assume federal income tax and self-employment tax in the 22% to 32% effective range plus typical per-agent overhead of $8,000 to $15,000 per year for MLS, E&O insurance, marketing, and license renewal.
BLS OEWS covers wage and salary workers and excludes self-employed and independent-contractor agents, who make up a large share of the field. Reported wages therefore reflect employed agents and undercount the total population. Always validate your own income math with a practicing broker in your target market.
Fazlur Rahman
