NZ Tax Guide for Real Estate Agents (2025-26)
Real estate agents and salespeople in New Zealand are typically employed by a licensed real estate agency but paid primarily through commission. Most real estate salespeople are treated as employees for PAYE purposes. However, some operate as contractors and must manage their own tax including provisional tax.
Quick Tax Snapshot — Median Real Estate Agent Salary
Real estate agent income is highly variable based on commission. Many agents earn $50,000–$80,000 in their first few years, while top performers in Auckland or Wellington may earn $200,000+. The median reflects a mid-career salesperson.
| Item | Annual | Monthly |
|---|---|---|
| Gross Salary | $75,000 | $6,250 |
| Income Tax (PAYE) | −$14,721 | −$1,227 |
| ACC Levy (1.6%) | −$1,253 | −$104 |
| KiwiSaver (3%) | −$2,250 | −$188 |
| Take-Home Pay | $56,777 | $4,731 |
Key Deductions for Real Estate Agents in NZ
REAA licence fees
Real Estate Agents Authority (REAA) licence fees paid by the salesperson are deductible if not reimbursed by the agency.
Vehicle expenses
If you use your personal vehicle for work (showing properties, client travel), you may claim the work-related proportion using either a logbook method or the IRD mileage rate (currently $1.04/km for the first 14,000 km).
Marketing and advertising costs
Costs you pay personally for listing photography, social media advertising, or print materials are deductible to the extent they relate to earning commission income.
Professional development
Training courses required by the Real Estate Authority or your agency to maintain or develop your sales licence are deductible.
Deductibility depends on individual circumstances. Consult a registered tax agent or accountant for personalised advice. See IRD guidance on individual expenses.
Frequently Asked Questions
How is real estate commission taxed in NZ?
Commission income earned by a real estate salesperson is taxable income. If employed, it is subject to PAYE at the applicable rate. If you are self-employed or a contractor, commission is included in your income and taxed at your marginal rate.
Do real estate agents pay provisional tax?
Real estate salespeople with self-employed or contractor income may need to pay provisional tax if their residual income tax exceeds $5,000. Agents on PAYE with a secondary income source may also be affected.
Are real estate agents required to register for GST?
If your commission income exceeds $60,000 in a 12-month period and you are not treated as an employee, you must register for GST. GST is charged at 15% on the commission component of your fees.
Can real estate agents claim car expenses in NZ?
Yes. Vehicle expenses for travel directly related to earning commission income are deductible. You must maintain a logbook if claiming actual costs, or you can use the IRD standard mileage rate method.
Calculate Your Actual Take-Home Pay
The figures above are based on a median salary estimate. Use our free calculator to see your exact take-home pay for your own salary — including student loan repayments if applicable.
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See NZ tax breakdowns for other common professions:
Calculations assume 2025-26 tax year, 3% KiwiSaver employee contribution, no student loan, and ACC earner's levy at 1.6% (capped at $152,790). Figures are estimates only. New Zealand has no personal allowance — income tax applies from the first dollar of income.
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