Real Estate Agent Tax Deductions 2026: What Agents and Clients Should Know

When April rolls around, every realtor asks the same question: what can I actually deduct this year? Staying on top of real estate agent tax deductions 2026 isn’t just about saving money, it’s about keeping more of your commission in your pocket while showing clients you understand the financial side of the business. As a trusted advisor, explaining these deductions to buyers and sellers can also strengthen your credibility.

Let’s break down what you need to know for 2026, how to maximize your deductions, and how to turn this knowledge into a tool for winning more clients.

Real Estate Agent Tax Deductions 2026: Why It Matters

Being a realtor often means running your own business. That comes with flexibility, but it also comes with the responsibility of paying self-employment taxes, business expenses, and keeping meticulous records.

According to the National Association of Realtors, over 87% of real estate professionals are independent contractors. That means you’re responsible for your own write-offs. Every deduction matters, and even small ones add up. Saving $200 on office supplies or $3,000 on mileage can make a serious impact by the end of the year.

Common Real Estate Agent Tax Deductions in 2026

Here are the most important categories you should know and help your clients understand.

1. Home Office Deduction

If you work from home (even part-time), you can deduct a portion of your housing costs. That includes rent, mortgage interest, utilities, and even internet.

Pro tip: Use a simple percentage calculation…if 15% of your home is office space, you can deduct 15% of related expenses.

2. Vehicle and Mileage

Driving clients to showings, heading to closings, or previewing listings? All deductible. For 2026, the IRS standard mileage rate is expected to hover around 67 cents per mile (confirm with official IRS updates each year).

Scenario: If you drive 10,000 business miles annually, that’s a $6,700 deduction.

3. Marketing and Advertising

Your website, Facebook ads, business cards, and even that Zillow premium subscription qualify. Realtors often overlook digital ads, but if you’re running campaigns like the strategies in Facebook Ads vs Google Ads for Realtors, all those costs are deductible.

4. Professional Fees and Education

MLS dues, licensing fees, coaching programs, and even online courses are deductible. That includes investing in tools that keep you sharp, like CRMs (see Top 5 Best CRMs for Realtors).

5. Technology and Subscriptions

From your laptop to Canva Pro, everything you use to run your business counts. Don’t forget IDX tools or plugins, which tie back to your website expenses. If you’ve read our post on Best Free Tools for Realtors, you’ll know many are free, but the paid ones are deductible.

6. Client Gifts and Meals

Taking clients out to coffee or giving a thank-you basket after closing? Those qualify under IRS guidelines, with limits. In 2026, meals are typically 50% deductible, while gifts are capped at $25 per client.

7. Insurance and Retirement Contributions

Health insurance premiums, Errors & Omissions (E&O) insurance, and contributions to a SEP IRA or Solo 401(k) all reduce taxable income.