When you got your real estate license, you also became a small business owner - whether you were ready for it or not. A lot of new agents are so focused on clients and deals that the financial side gets ignored. This guide covers the practical stuff: tracking your money, staying on the CRA’s good side, and not getting blindsided at tax time.
Understanding your self-employed status
Unless you’re on a salary at a brokerage (rare), you’re an independent contractor. No paycheck, no tax withholdings, no company pension. You are You Inc.
Here’s what that actually means:
- Income tax isn’t deducted at source. When a deal closes and you get your commission, you get the full amount. It’s on you to set aside money and report it as income later.
- You pay both sides of CPP. In a regular job, your employer covers half of your Canada Pension Plan contributions. Self-employed, you cover both. For 2025, that’s roughly 11% on earnings up to the annual maximum - a few thousand dollars on a solid income year.
- You may need to pay taxes in installments. Once you’re earning well, the CRA may require you to pay quarterly installments the following year (March, June, September, December) instead of one lump sum in April.
- Your filing deadline is June 15 - but payment is still due April 30. Don’t wait until June to figure out what you owe.
The GST/HST question
Real estate commissions are subject to GST/HST. Here’s how it works:
- Under $30,000/year: You’re considered a small supplier and don’t have to register.
- Why register early anyway: If you register voluntarily, you can claim Input Tax Credits (ITCs) to recover the GST/HST you pay on business expenses. A $1,130 laptop includes $130 in HST - registered agents can claim that back.
- Once you pass $30,000: Registration is mandatory. You have 29 days from crossing the threshold.
- Charging and remitting: If you’re registered, the HST on your commissions goes to you to remit to the CRA - not to keep. Open a separate account for it so you’re never tempted to spend it.
- Filing: Most new agents file annually. You report HST collected minus HST paid on expenses, and pay the difference (or get a refund if your credits exceed what you collected).
If you’re unsure where you stand, an accountant can sort this out quickly. The penalties for not registering when you should have are not fun.
Bookkeeping basics
Good habits here will save you money and stress. Here’s what to actually do:
- Separate bank account. Not a CRA requirement, but essential. Deposit commissions into a dedicated business account and pay business expenses from it. Mixing personal and business is how you lose hours at tax time.
- Keep every receipt. The $5 parking at a showing matters. Use an app to snap photos as you go - or just create a folder by month. CRA expects documentation for every expense you claim.
- Use bookkeeping software. A spreadsheet works early on. As your income grows, switch to something that categorizes transactions and generates tax-ready reports automatically. Accountly is built for exactly this - it’s priced for self-employed professionals and cuts out most manual data entry.
- Log your mileage. Agents drive a lot, and vehicle expenses are one of the biggest deductions available. You need a record of business travel to claim it. A mileage tracking app makes this painless.
- Be honest about personal vs. business use. If your phone is 80% business, claim 80% of the bill. CRA can and does ask for justification on mixed-use expenses.
- Do it monthly, not annually. Set aside time each month to update your records. The shoebox full of receipts approach works great - until it doesn’t.
Things to register for
A checklist for getting set up properly:
- CRA Business Number / GST/HST account - required once you hit $30k, worthwhile earlier
- Payroll account - only needed if you hire help (an assistant, a spouse, etc.)
- Provincial accounts - Quebec has its own requirements; check what applies in your province
- Municipal business license - some cities require one for home-based businesses; worth a quick check
- Trade name registration - if you’re operating under a name other than your own, some provinces require this
Best practices for staying financially healthy
- Save 25–30% of every commission for taxes. Transfer it to a separate account immediately. If you over-save, great. If you under-save, you’ll be in a painful spot in April.
- Budget for dry spells. A $20k month followed by nothing is normal in real estate. Save during the good months to cover the slow ones.
- Separate business credit. A dedicated credit card for business expenses simplifies tracking and usually earns better rewards on the categories you spend most on.
- Hire help for the things you’re not good at. A good accountant will typically save you more in taxes than they cost. If you genuinely hate bookkeeping, paying someone to handle it quarterly frees you up to focus on clients - or give Accountly a try and handle it yourself without the headache.
Staying on top of the financial side isn’t the most exciting part of real estate, but it’s what separates agents who build real wealth from those who always feel behind. When your finances are organized, you can focus on the work.
The information in this guide is for general informational purposes only and is not intended as accounting, tax, business, or legal advice. Accountly does not provide professional services or act as your accountant, tax advisor, or lawyer. No client relationship is created by your use of this material. Always seek advice from qualified professionals who understand your particular circumstances before acting on any information contained herein.
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