Cost of Selling a House in Canada 2026
What are the costs of selling a house?
Selling a home involves more than simply subtracting your mortgage from the sale price. Real estate commission, sales tax on commission, legal or notary fees, mortgage discharge costs and other expenses can all reduce how much money you receive after closing.
Use the Cost of Selling a House Calculator to estimate your seller closing costs and the proceeds remaining before your mortgage is paid off.
How the Cost of Selling a House Calculator Works
For a straightforward sale, the calculator estimates:
Estimated Selling Costs = Real Estate Commission + Sales Tax on Commission + Legal/Notary Fees
Your estimated proceeds before paying off your mortgage are:
Proceeds Before Mortgage Payoff = Sale Price − Estimated Selling Costs
Your mortgage balance is different from a selling cost. Paying off a $300,000 mortgage reduces the cash you receive from your sale by $300,000, but it does not mean that selling the house “cost” you $300,000.
For a more complete estimate of the cash you will receive, also account for your outstanding mortgage, any mortgage prepayment penalty, mortgage discharge fees and other adjustments made at closing.
How Much Does It Cost to Sell a House in Canada?
The largest cost for Canadian home sellers is real estate commission. Commission arrangements vary considerably by province, brokerage and agent, and all commission rates are negotiable.
You may also need to budget for legal or notary fees, sales tax on real estate services, mortgage discharge costs and a mortgage prepayment penalty. Depending on how you prepare and market your property, you could also have staging, cleaning, repairs, photography and moving expenses.
| Selling Cost | How It Is Calculated | Included in Calculator? |
|---|---|---|
| Real estate commission | Percentage, graduated rate or flat fee agreed to with your brokerage | Yes |
| Sales tax on commission | Applied to the real estate commission, depending on province (GST/HST/QST/PST) | Yes |
| Legal or notary fees | Depends on province, lawyer/notary and complexity | Yes |
| Mortgage discharge fee | Depends on your lender and province | No |
| Mortgage prepayment penalty | Depends on your mortgage contract | No |
| Repairs, staging and cleaning | Depends on the property and your selling strategy | No |
| Moving expenses | Depends on distance and services required | No |
| Income or capital gains tax | Depends on how the property was used and your tax situation | No |
The calculator focuses on the most common transaction costs with typical rates. Your actual cost can be higher or lower.
What is real estate commission?
Real estate commissions are the fees that you pay to your real estate agent for their services. Your real estate agent works very hard to market, stage, and sell your home. In Canada, the seller typically covers the real estate commissions for both the seller's and buyer's agents. The commissions are deducted from the proceeds of the sale and paid to the seller's brokerage. The seller's brokerage then pays the agreed-upon portion to the buyer's brokerage, which compensates the buyer's agent. This means the seller effectively pays the buyer agent's commission, but does not pay the buyer's agent directly.
As a seller, you can choose to self-list your home to avoid commission costs; however, you should have some previous experience with real estate transactions. A one percent agent charges a commission as low as 1% and can help you save on commission.
Sales Tax on Real Estate Commission by Province
Real estate agent commissions are generally taxable services even though the sale of a previously occupied residential home itself is usually exempt from GST/HST.
The tax that applies to residential real estate commission depends on the province.
| Province | Tax Generally Applied to Residential Real Estate Commission |
|---|---|
| Alberta | 5% GST |
| British Columbia | 5% GST |
| Manitoba | 5% GST |
| New Brunswick | 15% HST |
| Newfoundland and Labrador | 15% HST |
| Nova Scotia | 14% HST |
| Ontario | 13% HST |
| Prince Edward Island | 15% HST |
| Quebec | 5% GST + 9.975% QST = 14.975% |
| Saskatchewan | 5% GST + 6% PST = 11%* |
*Saskatchewan has no provincial PST for real estate commissions on new-home sales.
Do You Pay GST or HST on the Price of a Resale Home?
No, the sale of a previously occupied residential home is exempt from GST/HST.
This is different from the services used to sell the home. Real estate commissions and legal services are taxable even when the resale of the house itself is tax-exempt.
The real estate commission fee in Ontario is 5%, or $25,000, with 2.5% going to each agent. The sales tax in Ontario is 13% of the real estate commission fee, or $3,250. The legal fees are approximately $1,300, based on a typical range of $1,000 to $1,600.
In total, Bobby will pay $29,550 in the cost of selling his home. Assuming he owns all of the equity in his home, he will receive $470,450 upon closing.
The buyer agent real estate commission is 3.125% on the first $100K and 1.1625% on the remaining $900K in the Greater Vancouver Area, or $13,588. The seller agent commission is 3.875% on the first $100K and 1.3375% on the remaining $900K, or $15,913. The sales tax in BC is 5% of the real estate commission fee, or $1,475. The legal fees are approximately $1,300, based on a typical range of $1,000 to $1,600.
Real Estate Commission When Selling a House
Real estate commission pays for the services provided by a real estate brokerage and its agents. Depending on the agreement, these services can include pricing advice, listing the property, professional photography, marketing, arranging showings and open houses, communicating with buyers, reviewing offers and negotiating the sale.
There is no single standard real estate commission rate in Canada. The amount and structure are negotiated between the client and brokerage.
In many transactions, the seller agrees to pay a listing brokerage a commission, and some of that remuneration may be shared with the brokerage representing the buyer. A buyer may also have a separate compensation arrangement with their own agent. The exact arrangement should be set out in the applicable brokerage or representation agreements.
Average Home Prices & Estimated Selling Costs Across Canada
Shows each province's average home price and the estimated cost to sell a home at that price, based on August 2026 average home prices from the Canada Housing Market report. Estimated selling costs include commission, applicable sales tax, and estimated legal/notary fees.
The table below shows the same average home prices alongside the estimated selling costs. Click a province to jump to its commission details further down the page.
| Province | Avg. Home Price (August 2026) | Estimated Selling Costs |
|---|---|---|
| Ontario | $788,835 | $45,869 |
| British Columbia | $924,826 | $30,302 |
| Alberta | $524,545 | $22,023 |
| Quebec | $565,212 | $33,793 |
| Manitoba | N/A | N/A |
| Saskatchewan | $365,276 | $16,069 |
| Nova Scotia | $467,585 | $27,952 |
| New Brunswick | $348,897 | $21,362 |
| Newfoundland and Labrador | $366,918 | $22,398 |
| Prince Edward Island | $420,819 | $25,497 |
Real Estate Commission in British Columbia
Real estate commissions in British Columbia commonly use a graduated commission structure, where one percentage applies to the first $100,000 of the sale price and a lower percentage applies to the remaining amount. Rates vary considerably by region, with Greater Vancouver, the Fraser Valley, Victoria and Kelowna having different common commission structures.
For example, a combined commission of 7% on the first $100,000 and 2.5% on the remaining sale price is commonly used as an estimate in Greater Vancouver.
For example, selling a home for $500,000 using this structure would result in a commission of:
(7% × $100,000) + (2.5% × $400,000) = $17,000
The commission may be divided between the listing brokerage and the brokerage representing the buyer, depending on the agreements involved.
Real estate commissions are negotiable, so your actual cost may differ from the calculator's estimate.
For residential property sales in B.C., real estate commissions are subject to 5% GST. B.C.'s 7% PST does not apply to residential real estate services.
Real Estate Commission in Alberta
Alberta real estate commissions are commonly calculated using a graduated structure. A frequently used rate is 7% on the first $100,000 of the sale price and 3% on the remaining balance.
For example, selling a home for $500,000 using this structure would result in a commission of:
(7% × $100,000) + (3% × $400,000) = $19,000
The total commission may be divided between the listing brokerage and the brokerage representing the buyer. However, the exact commission and how it is divided depend on the agreements involved and do not have to follow a 50/50 split.
Alberta has no provincial sales tax, so real estate commissions are only subject to 5% GST.
Real Estate Commission in Saskatchewan
Real estate commissions in Saskatchewan are often calculated using a graduated percentage rather than a single rate on the entire sale price.
One commonly used structure is:
- 6% on the first $100,000
- 4% on the next $100,000
- 2% on the remaining sale price
Another structure sometimes used is 7% on the first $100,000 and 3% on the remaining amount. Your brokerage may use a different rate or fee structure, and commissions remain negotiable.
In Saskatchewan, real estate commissions on a resale home are subject to both 5% GST and 6% PST, resulting in combined sales taxes of 11% on the commission.
Real Estate Commission in Manitoba
Real estate commissions in Manitoba are negotiated between the seller and their brokerage. A percentage of the final sale price is commonly used, although the exact rate and how the commission is shared between brokerages can vary.
When comparing real estate agents, it is useful to look beyond the percentage alone. One agent's commission may include professional photography, staging advice, advertising and other marketing services that another brokerage charges for separately.
Manitoba does not apply its provincial Retail Sales Tax to ordinary real estate commissions. As a result, commissions on residential real estate transactions are only subject to 5% GST.
For example, a $20,000 commission would have $1,000 of GST added, bringing the total commission-related cost to $21,000.
Real Estate Commission in Ontario
Real estate commissions in Ontario are commonly expressed as a percentage of the home's selling price. A 5% combined commission is frequently used as a general estimate, although actual commissions can be lower or higher and are negotiable.
For example, a 5% commission on a $700,000 sale would be $35,000 before tax.
The listing brokerage may offer part of its commission to the brokerage representing the buyer.
Ontario real estate commissions are subject to 13% HST. A $35,000 commission would therefore have $4,550 of HST added, for a total commission-related cost of $39,550.
Real Estate Commission in Quebec
Real estate brokerage commissions in Quebec are negotiated between the seller and their brokerage and are normally set out in the brokerage contract. It may be expressed as a percentage of the selling price, a fixed amount or another agreed compensation structure.
If the buyer is also represented by a broker, part of the remuneration associated with the transaction may be shared between the brokerages. Sellers should review their brokerage contract to understand the compensation being charged and the services included.
Quebec real estate brokerage services are subject to both 5% GST and 9.975% QST. Together, this adds 14.975% in Quebec sales taxes to the brokerage commission.
For example, a $25,000 commission would have approximately $3,743.75 of GST and QST added, for a total of $28,743.75.
Real Estate Commission in New Brunswick
Real estate commissions in New Brunswick are negotiated with the brokerage and are commonly based on a percentage of the home's final selling price. There is no single commission rate that every seller is required to pay.
Depending on the transaction, the listing brokerage may share part of its remuneration with the brokerage representing the buyer. Sellers should compare both the commission and the services included when choosing an agent, such as photography, online marketing, open houses and other listing services.
New Brunswick uses the Harmonized Sales Tax. Real estate commissions and other taxable brokerage services are subject to 15% HST.
For example, a $20,000 real estate commission would have $3,000 of HST added, bringing the total commission-related cost to $23,000.
Real Estate Commission in Nova Scotia
Real estate commissions in Nova Scotia are negotiable and can vary by brokerage, property and local market. Commission is commonly calculated as a percentage of the final sale price, although brokerages may offer different commission structures or service packages.
When comparing agents, sellers should check whether expenses such as photography, advertising, virtual tours or staging consultations are included in the commission or charged separately.
Nova Scotia reduced its HST rate from 15% to 14% on April 1, 2025. As a result, real estate commissions in Nova Scotia are now subject to 14% HST.
For example, a $25,000 commission would have $3,500 of HST added, resulting in a total commission-related cost of $28,500.
Real Estate Commission in Prince Edward Island
Real estate commissions in Prince Edward Island are negotiated between the seller and their brokerage. A percentage-based commission is common, but there is no mandatory province-wide commission rate.
The amount you ultimately pay can depend on the sale price, brokerage, services included and compensation arrangements with any brokerage representing the buyer. Sellers should confirm the total commission and applicable taxes before signing a listing agreement.
Prince Edward Island uses the Harmonized Sales Tax. Real estate commissions in PEI are subject to 15% HST.
For example, a $20,000 commission would have $3,000 in HST added, resulting in a total commission-related cost of $23,000.
Real Estate Commission in Newfoundland and Labrador
Real estate commissions in Newfoundland and Labrador are generally negotiated as part of the seller's listing agreement. Percentage-based commissions are common, but the rate can vary between brokerages and transactions.
The listing agreement should specify how the brokerage will be compensated and what services are included. Depending on the transaction, some remuneration may also be offered or paid in connection with a brokerage representing the buyer.
Newfoundland and Labrador has a 15% HST, which applies to real estate agent commissions.
For example, if the commission before tax is $20,000, the HST would add $3,000, resulting in a total commission-related cost of $23,000.
Legal and Notary Fees When Selling a House
A lawyer or, in Quebec, a notary, may be involved in completing the sale and transferring the funds.
The exact work depends on the province and transaction, but it can include reviewing closing documents, confirming the mortgage payout, arranging the mortgage discharge, preparing or reviewing the statement of adjustments, receiving the buyer's funds, paying amounts that must be cleared from title and releasing the remaining proceeds to the seller.
Legal and notary fees are not standardized. They can vary based on the professional you use, the number of mortgages or other registrations on title, the complexity of the transaction and the required disbursements.
For this reason, the calculator's Estimated Legal/Notary Fees field should be treated as an editable estimate. If you already have a quote from your lawyer or notary, enter that amount instead.
What Is a Statement of Adjustments?
The statement of adjustments accounts for expenses that have already been paid or are still owing at the time the property changes hands.
For example, if you prepaid your property taxes beyond the closing date, the buyer may reimburse you for their share. If property taxes or condominium fees are owing, the amount may instead be deducted from your proceeds.
An adjustment is therefore not always an additional cost. It can either increase or decrease the amount you receive at closing.
Mortgage Costs When Selling a House
If your home has a mortgage, it will generally need to be discharged when the property is sold.
Your lender may charge a mortgage discharge fee, and legal or registration costs can also apply. The mortgage balance itself is then paid from the proceeds of the sale.
A much larger expense can arise if you sell before the end of a closed mortgage term.
Mortgage Prepayment Penalty
Paying off a closed mortgage early can trigger a prepayment penalty. This includes paying off the mortgage because you sold your home.
Depending on the lender and mortgage, the penalty may be based on several months of interest or an interest rate differential. The amount can sometimes reach thousands of dollars.
Before listing your home, ask your mortgage lender for a current payout statement or penalty estimate. If you are purchasing another property, also ask whether your mortgage can be ported to the new home.
Other Costs of Selling a House
Not every seller will have the same expenses. Costs outside the calculator can include home repairs or renovations, professional cleaning, home staging, landscaping, photography or marketing that is not included with your agent, moving expenses, storage, a mortgage penalty and costs associated with a vacant property before closing.
These expenses should be considered separately from the formal closing costs because they depend heavily on the property and how you choose to sell it.
How Much Money Will I Get After Selling My House?
Your sale price is not the amount that will arrive in your bank account.
A useful way to estimate your cash proceeds is:
Estimated Cash Proceeds = Sale Price − Selling Costs − Mortgage Payout − Other Amounts Owing
For example, suppose you sell a home for $800,000 and have $40,000 of commissions, taxes, legal fees and other selling costs. If your mortgage payout is $300,000, meaning you currently owe $300,000 on your mortgage:
$800,000 - $40,000 - $300,000 = $460,000
Your estimated cash proceeds would be approximately $460,000.
Selling a House Without a Real Estate Agent
Selling a house yourself, often called For Sale By Owner (FSBO), can reduce or eliminate the commission you would otherwise pay a listing brokerage.
However, it also means taking responsibility for many tasks that would normally be handled by an agent, including pricing, photography, marketing, arranging showings, reviewing offers and negotiating with buyers.
Selling without a listing agent does not necessarily mean that there will be no real estate compensation involved in the transaction. A buyer may be represented by an agent under a separate compensation agreement, and the parties may negotiate how that compensation is handled.
You should also consider your legal responsibilities as a seller. Property disclosure requirements vary by province and circumstances, and a lawyer or notary can advise you about your obligations.
Licensed real estate professionals operate under provincial regulatory requirements and, in some provinces, are required to maintain errors and omissions insurance. This does not replace the seller's own legal responsibilities, but it is one of the protections associated with using a regulated professional.
Frequently Asked Questions
What are the main costs of selling a house in Canada?
The largest cost is often real estate commission. Other common expenses include tax on the commission, legal or notary fees, mortgage discharge costs and potentially a mortgage prepayment penalty. Sellers may also spend money on cleaning, staging, repairs, moving and storage.
Who pays real estate commission when a house is sold?
The seller commonly pays commission to the listing brokerage, which may share part of that with the brokerage representing the buyer. Compensation arrangements can vary, however, and buyers may also have their own agreements with their agents. Always check the brokerage or representation agreement for your particular transaction.
Are real estate commissions negotiable in Canada?
Yes. There is no universal commission rate that every Canadian seller must pay. Commissions may be structured as a percentage of the sale price, a graduated percentage, a flat fee or another agreed amount. Compare both the fee and the services being provided when choosing an agent.
Is real estate commission charged on the price before or after tax?
The commission is calculated first using the agreed commission structure. The applicable GST, HST, QST or PST is then calculated on the commission. For example, a 5% commission on a $500,000 Ontario home is $25,000. Ontario's 13% HST on the commission adds another $3,250, making the total commission-related cost $28,250.
Do I have to pay tax when I sell my home?
The sale of a previously occupied residential home is generally exempt from GST/HST. However, GST/HST and applicable provincial taxes can still apply to services used in the sale, such as real estate commissions and legal services. Income-tax treatment is a separate issue. A qualifying principal residence may receive the principal residence exemption, while the sale of an investment property, secondary property or property used to earn income may have tax consequences.
Does this calculator include my mortgage?
No. Your outstanding mortgage is a debt that is repaid from the sale proceeds rather than a cost of selling the property. The calculator shows your estimated proceeds before mortgage payoff. Subtract your lender's mortgage payout amount to estimate how much cash may remain after closing.
Can I avoid a mortgage penalty when I sell?
Possibly. If your mortgage is open, a prepayment penalty generally does not apply. With a closed mortgage, ask your lender whether you can port the mortgage to your next property or use other available prepayment privileges. Your lender can provide the most accurate payout and penalty estimate.
How can I reduce the cost of selling my house?
The largest opportunity is usually real estate commission because commissions are negotiable. Compare several agents and understand exactly which services are included. You may also be able to reduce optional expenses by handling some cleaning, staging, minor repairs or moving work yourself. However, the cheapest option is not automatically the best option if it reduces the sale price or creates additional legal or transaction risk.
Disclaimer:
- Any analysis or commentary reflects the opinions of WOWA.ca analysts and should not be considered financial advice. Please consult a licensed professional before making any decisions.
- The calculators and content on this page are for general information only. WOWA® does not guarantee the accuracy and is not responsible for any consequences of using the calculator.
- Financial institutions and brokerages may compensate us for connecting customers to them through payments for advertisements, clicks, and leads.
- Interest rates are sourced from financial institutions' websites or provided to us directly. Real estate data is sourced from the Canadian Real Estate Association (CREA) and regional boards' websites and documents.