Real Estate
Average Realtor Commission by State: What Sellers and Buyers Pay in 2026
Average realtor commission by state in 2026: a state-by-state table of total rates, why some states run higher, and what the numbers mean for sellers and buyers.
Average Realtor Commission by State: What Sellers and Buyers Pay in 2026
The average total realtor commission in the United States runs about 5.0 to 5.5 percent of the sale price in 2026, split between the listing agent and the buyer's agent. On a $400,000 home, that is $20,000 to $22,000. The range across states is wider than most people expect, from around 4.5 percent in parts of the Northeast and West Coast to close to 6 percent in several Southern and Midwestern states.
Two things changed the picture over the last couple of years. The 2024 National Association of Realtors settlement ended the practice of listing agents advertising a buyer's agent fee through the MLS, and buyers now sign written agreements with their agents that spell out compensation before touring homes. Sellers still often agree to cover some or all of the buyer's agent fee as a negotiating point, but it is no longer automatic.
Here is how commission rates break down by state, why some states run higher than others, and what it means when you are on either side of the deal.
How Commission Works Now
Commission is negotiable and always has been, but the way it is negotiated has shifted. A seller signs a listing agreement that sets the listing agent's fee, typically 2.5 to 3 percent.
A buyer signs a buyer representation agreement that sets their agent's fee, also typically 2.5 to 3 percent. Who pays the buyer's side is worked out in the purchase offer.
In practice, most sellers in 2026 still agree to pay a buyer's agent fee as a concession, because buyers who cannot roll it into the price often cannot afford to pay it out of pocket. The difference is that the amount is now an offer term rather than a pre-set number on the MLS, and sellers can decline or counter.
That means the "average commission" in a state is the average of two separately negotiated numbers, and the total a seller ends up paying depends on what they agreed to in the listing and what they conceded in the sale.
Listing Side and Buyer Side
The listing agent's fee has been the more stable of the two. Most states cluster between 2.5 and 3 percent for the listing side. The buyer's side has more variation now, with some markets settling around 2 to 2.5 percent and a growing number of flat-fee and reduced-rate buyer agents in the larger metros.
Discount brokerages and flat-fee listing services are common in every state and pull the averages down in markets where they have taken share, mostly the big coastal and Sun Belt metros.
Commission Rates by State
The table below shows approximate average total commission rates by state for a standard full-service transaction in 2026. These are estimates drawn from industry surveys and transaction data, and rates within any state vary by metro, price point, and brokerage. Treat them as a starting point for negotiation, not a fixed number.
| State | Approximate Total Commission | Notes |
|---|---|---|
| Alabama | 5.5% to 5.9% | Among the highest in the country |
| Alaska | 5.2% to 5.6% | Small market, fewer discount options |
| Arizona | 5.0% to 5.4% | Phoenix runs lower than rural areas |
| Arkansas | 5.5% to 5.9% | High end of the range |
| California | 4.7% to 5.1% | High prices keep percentages low |
| Colorado | 5.2% to 5.6% | Denver metro closer to 5.0% |
| Connecticut | 5.0% to 5.4% | Fairfield County lower |
| Delaware | 5.2% to 5.6% | Small market |
| Florida | 5.2% to 5.6% | Wide variation by metro |
| Georgia | 5.4% to 5.8% | Atlanta slightly lower |
| Hawaii | 4.8% to 5.2% | High prices, lower percentages |
| Idaho | 5.2% to 5.6% | Boise area near 5.0% |
| Illinois | 5.0% to 5.4% | Chicago metro lower |
| Indiana | 5.5% to 5.9% | High end |
| Iowa | 5.4% to 5.8% | |
| Kansas | 5.4% to 5.8% | |
| Kentucky | 5.5% to 5.9% | High end |
| Louisiana | 5.4% to 5.8% | |
| Maine | 5.0% to 5.4% | |
| Maryland | 5.0% to 5.4% | DC suburbs lower |
| Massachusetts | 4.6% to 5.0% | Among the lowest |
| Michigan | 5.4% to 5.8% | |
| Minnesota | 5.2% to 5.6% | |
| Mississippi | 5.5% to 5.9% | High end |
| Missouri | 5.4% to 5.8% | |
| Montana | 5.2% to 5.6% | |
| Nebraska | 5.4% to 5.8% | |
| Nevada | 4.8% to 5.2% | Las Vegas competitive |
| New Hampshire | 5.0% to 5.4% | |
| New Jersey | 4.8% to 5.2% | Low end |
| New Mexico | 5.4% to 5.8% | |
| New York | 4.6% to 5.0% | NYC and Long Island lowest |
| North Carolina | 5.2% to 5.6% | Charlotte and Raleigh near 5.0% |
| North Dakota | 5.4% to 5.8% | |
| Ohio | 5.4% to 5.8% | |
| Oklahoma | 5.5% to 5.9% | High end |
| Oregon | 4.8% to 5.2% | Portland competitive |
| Pennsylvania | 5.2% to 5.6% | Philadelphia suburbs lower |
| Rhode Island | 5.0% to 5.4% | |
| South Carolina | 5.4% to 5.8% | |
| South Dakota | 5.4% to 5.8% | |
| Tennessee | 5.2% to 5.6% | Nashville near 5.0% |
| Texas | 5.2% to 5.6% | Austin and Dallas lower |
| Utah | 5.0% to 5.4% | |
| Vermont | 5.2% to 5.6% | |
| Virginia | 5.0% to 5.4% | Northern Virginia lower |
| Washington | 4.8% to 5.2% | Seattle competitive |
| West Virginia | 5.5% to 5.9% | High end |
| Wisconsin | 5.4% to 5.8% | |
| Wyoming | 5.2% to 5.6% |
The District of Columbia runs close to Northern Virginia and Maryland's DC suburbs at around 4.8 to 5.2 percent.
Why Some States Run Higher
Home prices are the biggest driver. A 5 percent commission on a $900,000 home in San Jose is $45,000, and agents in high-price markets can afford to take a lower percentage and still earn well. In a state where the median home is $220,000, the same 5 percent is $11,000, and agents hold the percentage closer to 6 to make the transaction worthwhile.
Competition is the second. The large metros in California, Washington, New York, New Jersey, and Massachusetts have the most discount brokerages, flat-fee listing services, and high-volume teams, and those pull the average down. Rural markets and smaller states have fewer options and rates stay closer to the traditional 6 percent.
Local custom is the third. Some markets have long-standing norms around commission that shift slowly. Parts of the South and Midwest have held near 6 percent total for decades, and the settlement has moved the buyer's side more than the listing side in those areas.
Dual Agency Rules
States that allow dual agency, where one agent represents both sides, sometimes see lower total commissions on those transactions because a single agent earns both sides and can discount. States that prohibit or restrict it, including Florida in its traditional form and several others, do not get that effect.
What It Means for Sellers
On a $400,000 sale, the difference between 5.0 and 5.8 percent is $3,200. On a $750,000 sale, it is $6,000. That is real money and it is negotiable at the listing appointment.
Sellers should interview two or three agents and ask each one directly what listing fee they charge and what buyer's agent concession they recommend for the local market. An agent in a state at the high end of the table who quotes 3 percent on the listing side plus a 3 percent buyer concession is quoting the old number, and there is room to talk.
Full-service agents earn their fee on pricing, staging, marketing, and negotiation, and a good one usually nets the seller more than a discount service does. The goal is a fair rate for real work, not the lowest number.
Concessions and Net Proceeds
Since the settlement, the buyer's agent fee is a line in the offer. A seller can accept an offer that asks for a 2.5 percent concession, counter at 2 percent, or accept an offer with no concession from a buyer who is paying their own agent. Comparing offers now means comparing net proceeds after concessions, not just the headline price.
What It Means for Buyers
Buyers now sign a written agreement with their agent before touring homes that states the agent's compensation. That number is negotiable too, and buyers in competitive metros are seeing offers from 2 to 2.5 percent, flat fees of a few thousand dollars, and hourly arrangements from some brokerages.
In most transactions in 2026, the seller still ends up covering the buyer's agent fee as a concession. But buyers should be ready for a seller who will not, and should understand that the fee they agreed to in the buyer agreement is what they owe if the seller pays less. A buyer who signed at 3 percent and buys a house where the seller concedes 2 percent owes the difference.
Ask the agent to explain the agreement in plain terms before signing. Ask what happens if the seller pays nothing. Ask whether the fee applies to new construction and for-sale-by-owner homes.
Finding an Agent Who Charges Fairly
Interview more than one. Ask each agent to show recent sales in your price range and what the total commission was on those transactions. An agent who has closed deals at 5 percent total in a state where the table shows 5.6 percent knows how to work with the market.
Read reviews and ask for references from recent clients. Ask how the agent handles buyer concession negotiations and what their advice would be for your situation. The best agents in any state will walk through the numbers without being defensive about them.
For agent rankings, market guides, and more on how commissions and negotiations work in specific cities, read more of our real estate guides on the blog.
Frequently Asked Questions
What is the average realtor commission in the United States?
About 5.0 to 5.5 percent total in 2026, split between the listing agent and the buyer's agent. On a $400,000 home, that is $20,000 to $22,000 before any negotiation.
Which states have the lowest realtor commissions?
Massachusetts, New York, California, Hawaii, New Jersey, Oregon, Washington, and Nevada run around 4.6 to 5.2 percent total. High home prices and heavy competition from discount brokerages in the big metros keep percentages down.
Which states have the highest realtor commissions?
Alabama, Arkansas, Indiana, Kentucky, Mississippi, Oklahoma, and West Virginia run around 5.5 to 5.9 percent total. Lower home prices and fewer discount options keep rates closer to the traditional 6 percent.
Who pays the buyer's agent commission now?
It is negotiated in the offer. Most sellers in 2026 still agree to cover some or all of it as a concession, but the buyer signed an agreement stating what their agent is owed, and the buyer covers any shortfall.
Can I negotiate realtor commission?
Yes, on both sides. Listing fees and buyer agent fees are set in written agreements you sign, and both are open to negotiation. Interview two or three agents and ask each one directly what they charge.
