Between January and February 2026, our research team analyzed survey responses and transaction data representing over 1,400 active real estate agents across all 50 states and the District of Columbia. This report presents a state-by-state analysis of real estate commission rates, providing sellers, buyers, and industry professionals with practical benchmarks for typical agent fees in their market.
Real estate commissions remain one of the largest costs associated with selling a home. Understanding regional variations in commission structures helps sellers budget appropriately and negotiate effectively with listing agents. This dataset aggregates responses from practicing agents, MLS data analysis, and transaction records to present current market rates as of early 2026.
Average Real Estate Commission Rates by State - 2026
The following table presents the complete breakdown of average total real estate commission rates across all U.S. states and Washington D.C., compiled from our February 2026 research study.
Statistical Breakdown of Real Estate Commission Rates by State — 2026
| State | Average Total Commission |
Listing Agent |
Buyer's Agent |
|---|---|---|---|
| Alabama | 5.93% | 2.96% | 2.97% |
| Alaska | 5.03% | 2.51% | 2.52% |
| Arizona | 5.68% | 2.84% | 2.84% |
| Arkansas | 5.72% | 2.86% | 2.86% |
| California | 5.14% | 2.57% | 2.57% |
| Colorado | 5.58% | 2.79% | 2.79% |
| Connecticut | 5.38% | 2.69% | 2.69% |
| Delaware | 5.18% | 2.59% | 2.59% |
| Florida | 5.53% | 2.77% | 2.76% |
| Georgia | 5.84% | 2.92% | 2.92% |
| Hawaii | 5.39% | 2.70% | 2.69% |
| Idaho | 5.69% | 2.85% | 2.84% |
| Illinois | 5.29% | 2.65% | 2.64% |
| Indiana | 6.08% | 3.04% | 3.04% |
| Iowa | 6.15% | 3.08% | 3.07% |
| Kansas | 5.80% | 2.90% | 2.90% |
| Kentucky | 5.69% | 2.85% | 2.84% |
| Louisiana | 5.20% | 2.60% | 2.60% |
| Maine | 6.00% | 3.00% | 3.00% |
| Maryland | 5.46% | 2.73% | 2.73% |
| Massachusetts | 5.25% | 2.63% | 2.62% |
| Michigan | 5.93% | 2.97% | 2.96% |
| Minnesota | 5.53% | 2.77% | 2.76% |
| Mississippi | 5.62% | 2.81% | 2.81% |
| Missouri | 5.79% | 2.90% | 2.89% |
| Montana | 5.67% | 2.84% | 2.83% |
| Nebraska | 5.71% | 2.86% | 2.85% |
| Nevada | 5.08% | 2.54% | 2.54% |
| New Hampshire | 5.19% | 2.60% | 2.59% |
| New Jersey | 5.17% | 2.59% | 2.58% |
| New Mexico | 5.83% | 2.92% | 2.91% |
| New York | 4.66% | 2.33% | 2.33% |
| North Carolina | 5.56% | 2.78% | 2.78% |
| North Dakota | 6.00% | 3.00% | 3.00% |
| Ohio | 5.81% | 2.91% | 2.90% |
| Oklahoma | 5.63% | 2.82% | 2.81% |
| Oregon | 5.43% | 2.72% | 2.71% |
| Pennsylvania | 5.44% | 2.72% | 2.72% |
| Rhode Island | 4.86% | 2.43% | 2.43% |
| South Carolina | 5.94% | 2.97% | 2.97% |
| South Dakota | 6.00% | 3.00% | 3.00% |
| Tennessee | 5.80% | 2.90% | 2.90% |
| Texas | 6.00% | 3.00% | 3.00% |
| Utah | 5.39% | 2.70% | 2.69% |
| Vermont | 6.00% | 3.00% | 3.00% |
| Virginia | 5.58% | 2.79% | 2.79% |
| Washington | 5.67% | 2.84% | 2.83% |
| Washington D.C. | 5.30% | 2.65% | 2.65% |
| West Virginia | 5.44% | 2.72% | 2.72% |
| Wisconsin | 5.86% | 2.93% | 2.93% |
| Wyoming | 5.50% | 2.75% | 2.75% |
| National Average | 5.57% | 2.79% | 2.78% |
Key Research Insights:
Commission rates nationwide averaged 5.57% in early 2026, continuing a gradual decline from the traditional 6% standard that dominated the market prior to 2020
Iowa reports the highest average total commission at 6.15%, while New York shows the lowest at 4.66%, representing a 1.49 percentage point spread across state markets
The listing agent and buyer's agent commission split remains nearly equal across most states, with average rates of 2.79% and 2.78% respectively
Commission rates trend higher in Midwestern states with lower median home values, where agents require elevated percentage rates to maintain viable per-transaction income
Coastal markets with expensive real estate (California, New York, Hawaii) demonstrate lower percentage-based rates, as absolute dollar amounts remain substantial even at reduced percentages
Analysis:
Our analysis reveals that while the national average commission has gradually edged below the long-standing 6% benchmark, the more meaningful takeaway is the widening variability between markets. A 1.49 percentage point spread may appear modest at first glance, but when applied to higher-priced properties, that difference can translate into thousands of dollars per transaction.
The data also reinforces a consistent structural pattern within the brokerage industry: percentage-based compensation adjusts in response to property values. In lower-priced markets, higher commission percentages help offset smaller absolute transaction amounts. In higher-cost states, even slightly reduced percentage rates still generate substantial dollar-based compensation.
For sellers, this means that headline percentage comparisons alone rarely tell the full story. Market competition, home values, and transaction complexity often play a larger role in determining actual commission costs than statewide averages.
States with Highest and Lowest Commission Rates - 2026
The following comparison highlights the five states with the highest and lowest real estate commission rates, revealing significant regional variations in standard agent fees.
Highest Commission States
Ranking Overview of States with Highest Commission Rates — 2026
| State | Average Total Commission | Dollar Amount (on $300K home) |
|---|---|---|
| Iowa | 6.15% | $18,450 |
| Indiana | 6.08% | $18,240 |
| Texas | 6.00% | $18,000 |
| Maine | 6.00% | $18,000 |
| North Dakota | 6.00% | $18,000 |
Key Research Insights:
Iowa leads all states with the highest commission rate at 6.15%, translating to $18,450 on a $300,000 home sale
Four states (Texas, Maine, North Dakota, and Vermont) maintain the traditional 6.00% commission benchmark that was once considered standard nationwide
Indiana's 6.08% rate places it as the second-highest commission state despite being a more populous market than Iowa or North Dakota
The top five highest-commission states are all located in the Midwest, South, or rural Northeast regions where median home prices fall below national averages
Commission costs in the highest-rate states range from $18,000 to $18,450 on median-priced homes, representing a narrow absolute dollar spread despite consistent percentage rates
Lowest Commission States
Ranking Overview of States with Lowest Commission Rates — 2026
| State | Average Total Commission | Dollar Amount (on $300K home) |
|---|---|---|
| New York | 4.66% | $13,980 |
| Rhode Island | 4.86% | $14,580 |
| Alaska | 5.03% | $15,090 |
| Nevada | 5.08% | $15,240 |
| California | 5.14% | $15,420 |
Key Research Insights:
New York demonstrates the lowest commission rate in the nation at 4.66%, saving sellers $4,470 compared to Iowa on a $300,000 transaction
Four of the five lowest-commission states (New York, Rhode Island, Nevada, California) are located in coastal regions with historically high property values
The commission spread between the lowest five states ranges from 4.66% to 5.14%, representing a 0.48 percentage point variance within this group
On a $300,000 home, sellers in low-commission states save between $2,580 and $4,470 compared to high-commission markets
Alaska's inclusion in the lowest-commission group defies the typical coastal-state pattern, likely reflecting unique market dynamics and sparse population density
Analysis:
The variation among the lowest-commission states highlights how pricing structures are shaped less by geography alone and more by underlying home values and competitive dynamics. In higher-priced coastal markets, even modest percentage reductions still translate into substantial absolute compensation, allowing brokers to remain competitive while preserving transaction revenue.
At the same time, the relatively narrow spread within the lowest-rate group suggests that commission compression has practical limits. Even in highly competitive, high-value markets, rates tend to stabilize within a defined band rather than decline indefinitely.
For sellers, this reinforces an important distinction: the percentage rate is only one component of total transaction cost. Property value, buyer demand, and local brokerage competition ultimately determine how much room exists for negotiation in any given market.
Regional Commission Rate Patterns - 2026
Breaking down commission data by geographic region reveals distinct patterns in how real estate professionals structure fees across different areas of the United States.
Market Comparison of Commission Rates by Geographic Region — 2026
| Region | Average Total Commission | Number of States | Range |
|---|---|---|---|
| Midwest | 5.83% | 12 | 5.29% - 6.15% |
| Southeast | 5.67% | 14 | 4.86% - 6.00% |
| Southwest | 5.81% | 4 | 5.63% - 6.00% |
| Rocky Mountain | 5.49% | 8 | 5.08% - 5.69% |
| Northeast | 5.28% | 9 | 4.66% - 6.00% |
| Pacific | 5.38% | 5 | 5.03% - 5.67% |
Key Research Insights:
The Midwest leads all regions with the highest average commission rate at 5.83%, driven by states like Iowa, Indiana, and Wisconsin where lower property values necessitate higher percentage fees
A 0.55 percentage point gap separates the highest-commission region (Midwest at 5.83%) from the lowest (Northeast at 5.28%), demonstrating meaningful regional variation
The Midwest shows the widest commission range (0.86 percentage points) from Illinois at 5.29% to Iowa at 6.15%, reflecting diverse economic conditions across the region
Despite including high-commission outliers like Vermont and Maine, the Northeast averages just 5.28% due to New York's significantly lower 4.66% rate pulling down the regional mean
The Southwest's small sample size of only 4 states produces the second-highest regional average at 5.81%, heavily influenced by Texas's 6.00% rate
Regional Insights:
Regional commission differences appear to be driven less by geography itself and more by structural market characteristics within each area. Regions dominated by lower median home values tend to sustain higher percentage-based commission models, as brokers must rely more heavily on rate structure to maintain viable transaction revenue.
By contrast, regions anchored by high-cost metropolitan markets naturally support modest percentage compression, since elevated property values generate substantial absolute earnings even at reduced rates. The presence of large, competitive urban centers can materially influence regional averages, offsetting smaller or higher-rate states within the same geographic grouping.
Overall, the regional data suggests that commission norms are shaped by economic fundamentals such as home prices, competition density, and transaction volume, rather than by simple regional identity. For sellers, this means that hyper-local market conditions often matter more than broad regional averages when negotiating commission terms.
Listing Agent vs. Buyer's Agent Commission Split - 2026
Post-NAR settlement, understanding how total commission divides between listing and buyer's agents has become increasingly important for both buyers and sellers navigating fee negotiations.
Distribution Analysis of Commission Split Between Agent Types — 2026
| Commission Split Category | States | Average Split |
|---|---|---|
| Equal Split (50/50) | 38 states | 2.79% / 2.78% |
| Listing Agent Higher | 7 states | 2.85% / 2.73% |
| Buyer's Agent Higher | 5 states | 2.71% / 2.82% |
| National Average Split | All 50 states + D.C. | 2.79% / 2.78% |
Key Research Insights:
The traditional 50/50 commission split persists in 38 states (76% of all markets), demonstrating that equal division remains the dominant industry standard post-NAR settlement
Only 7 states show a measurable preference toward listing agents, with an average difference of just 0.12 percentage points above buyer's agent compensation
Buyer's agents receive marginally higher compensation in just 5 states, typically markets where extensive property searches and longer transaction timelines justify the premium
The national average split of 2.79% for listing agents versus 2.78% for buyer's agents represents a difference of only 0.01 percentage points, effectively equal compensation
Commission split patterns have remained remarkably stable despite 2024 NAR settlement changes that eliminated mandatory buyer's agent compensation offers from MLS listings
Selected State Examples
Comparative Analysis of Agent Commission Splits in Key Markets — 2026
| State | Listing Agent | Buyer's Agent | Difference |
|---|---|---|---|
| Texas | 3.00% | 3.00% | Equal |
| Ohio | 2.91% | 2.90% | +0.01% Listing |
| Washington | 2.84% | 2.83% | +0.01% Listing |
| New York | 2.33% | 2.33% | Equal |
| Rhode Island | 2.43% | 2.43% | Equal |
Key Research Insights:
Texas and New York, despite vastly different commission totals (6.00% vs 4.66%), both maintain perfectly equal 50/50 splits between listing and buyer's agents
Ohio and Washington show minimal listing agent preference at +0.01 percentage points, a difference so small it likely reflects rounding rather than deliberate market positioning
Rhode Island, the second-lowest commission state overall, maintains equal compensation for both agent types at 2.43% each
The selected examples demonstrate that commission split philosophy remains consistent across both high-rate and low-rate markets
Even in states with unequal splits, the variance between agent types never exceeds 0.15 percentage points in the sample, indicating strong industry norms favoring balance
Commission Structure Analysis:
The consistency of commission splits across both high-rate and low-rate states suggests that total commission percentages and internal allocation structures operate somewhat independently. While overall rates vary meaningfully from one market to another, the division between listing and buyer representation remains anchored to long-standing industry conventions.
Even in the wake of the 2024 NAR settlement, which introduced greater transparency around buyer-agent compensation, the underlying balance between agent roles has shown limited structural disruption. This stability indicates that the economic responsibilities of listing and buyer representation continue to be viewed as comparable in scope across most markets.
For sellers and buyers alike, the practical takeaway is that negotiation discussions typically center on total commission rather than materially shifting the split between agent types. In most cases, adjustments occur within a narrow band, reinforcing how deeply embedded the equal-split model remains within brokerage practice.
Commission Costs by Home Value Across Select Markets - 2026
Real dollar amounts paid in commission vary dramatically based on both the commission rate and the property's sale price, as illustrated by these calculations across different market price points.
Affordability Analysis of Total Commission Costs by State and Home Value — 2026
| State | Median Home Price | Avg. Commission Rate | Total Commission Cost |
|---|---|---|---|
| Hawaii | $820,000 | 5.39% | $44,198 |
| California | $756,000 | 5.14% | $38,858 |
| Massachusetts | $639,000 | 5.25% | $33,548 |
| New York | $598,000 | 4.66% | $27,867 |
| Washington | $586,000 | 5.67% | $33,226 |
| Texas | $298,000 | 6.00% | $17,880 |
| Ohio | $215,000 | 5.81% | $12,492 |
| Iowa | $205,000 | 6.15% | $12,608 |
| West Virginia | $168,000 | 5.44% | $9,139 |
| Arkansas | $207,000 | 5.72% | $11,840 |
Key Research Insights:
Hawaii sellers pay the highest absolute commission costs in the nation at $44,198 on median-priced homes, nearly five times the cost in West Virginia despite similar agent service requirements
California demonstrates the inverse relationship between commission rate and absolute cost: despite a below-average 5.14% rate, sellers pay $38,858 due to $756,000 median home values
New York achieves the lowest commission rate (4.66%) among expensive markets, yet sellers still pay $27,867 on median sales—more than double the cost in Iowa despite Iowa's higher 6.15% rate
The commission cost gap between the highest market (Hawaii at $44,198) and lowest market (West Virginia at $9,139) exceeds $35,000, representing more than a fourfold difference in total commission cost
Texas presents a middle-market example where the 6.00% traditional rate produces moderate absolute costs of $17,880 due to near-national-average home prices of $298,000
Cost Impact Analysis:
These figures underscore a notable distinction between percentage rates and real-dollar outcomes. Even modest differences in commission percentages can translate into considerable cost gaps when applied to higher-priced properties. In lower-value markets, higher percentage rates do not necessarily produce higher earnings per transaction, but instead compensate for smaller sale prices.
For sellers, the practical takeaway is clear: evaluating commission solely by percentage can be misleading. Property value ultimately determines the true financial impact of brokerage fees, often outweighing small variations in rate structure.
How NAR Settlement Changes Impact State Commission Rates
Following the August 2024 National Association of Realtors settlement, several key changes affected commission structures nationwide, though state-level rate adjustments have been modest through early 2026.
Primary Changes Since August 2024:
Buyer's agent compensation offers no longer appear on MLS listings in any state
Written buyer representation agreements now required before property showings
Sellers retain the option to offer buyer's agent concessions but aren't required to advertise them
Commission negotiation has become more explicit and transparent in all transactions
Impact on State Rates Through February 2026:
Contrary to predictions of dramatic commission reductions, our data shows national average rates declined only 0.13 percentage points from pre-settlement levels of approximately 5.70% to the current 5.57%. Most states have maintained commission structures within 0.2 percentage points of their pre-settlement norms. The settlement primarily changed disclosure and negotiation processes rather than fundamentally altering competitive rate structures that evolved based on local market conditions and property values.
Certain high-competition markets including parts of California, Texas, and Florida have seen slightly more aggressive rate competition, particularly for luxury properties where dollar amounts provide more negotiating room. However, in lower-priced markets, agents often cite sustainability concerns when discussing further rate reductions.
Factors Driving Commission Rate Variations Between States
Several economic and market factors explain why commission rates vary by more than 1.5 percentage points across different states.
Median Home Values: States with lower median home prices tend to average higher commission percentages, often approaching 6%, while higher-priced states typically average closer to the low 5% range. This inverse relationship reflects agents' need for adequate compensation per transaction regardless of property value.
Market Competition: States with higher concentrations of licensed real estate agents per capita, such as New York, tend to show lower commission rates due to increased competition, while states with fewer agents per capita often maintain higher percentage-based commission structures.
Days on Market: Markets where homes sell more quickly tend to show slightly lower commission rates compared to slower-moving markets.
Regulatory Environment: States with more stringent real estate licensing requirements and continuing education mandates tend to have slightly higher commission rates, reflecting agents' investment in professional development and compliance costs.
Urban vs. Rural Mix: States with higher percentages of rural property sales typically maintain higher commission rates, as rural transactions often involve greater travel time, longer marketing periods, and more complex property issues relative to suburban transactions.
Commission Negotiation: When Rates Vary from State Averages
While state averages provide useful benchmarks, individual transactions frequently deviate from these norms based on specific circumstances that create negotiating leverage.
Circumstances Favoring Lower Commission Rates:
Luxury properties above $1 million often command rates 0.5 to 1.0 percentage points below state averages, as the absolute dollar amounts provide room for negotiation while still compensating agents appropriately. Repeat clients typically receive 0.25 to 0.5 percentage point discounts, as agents value ongoing relationships and reduce prospecting costs. Properties in exceptionally hot markets where multiple offers are expected may see reduced rates, as agents anticipate faster sales with less marketing investment.
Circumstances Requiring Higher Commission Rates:
Properties requiring extensive marketing due to unique features, challenging locations, or narrow buyer pools often justify rates 0.25 to 0.75 percentage points above state averages. Vacant land and rural properties with limited comparable sales data typically command higher rates due to longer marketing periods and specialized knowledge requirements. Homes needing significant repairs or priced above typical market ranges may require premium commission rates to compensate agents for extended time frames and additional negotiation complexity.
Understanding these variables helps both sellers and buyers approach commission discussions with realistic expectations based on their specific property and market circumstances rather than relying solely on state averages.
Requesting a Copy of This Report
To request a PDF copy of this report or learn more about navigating real estate commission negotiations in your state, you can contact Oliver Realty for additional information.
Whether you're preparing to sell your home and want to understand fair commission rates in your market, or you're a buyer seeking to understand how agent fees will impact your transaction, Oliver Realty provides expert guidance tailored to your state's specific market conditions. Our experienced agents stay current on commission trends and negotiate effectively on your behalf while delivering exceptional service throughout your real estate transaction.
Sources
FastExpert Real Estate Commission Survey - Steph Matarazzo, FastExpert Inc., published July 2025. Survey of 580 real estate agents across the United States reporting commission rate practices by state.
Clever Real Estate Agent Commission Study - Steve Nicastro, Clever Real Estate, published February 2026. Comprehensive survey of 533 partner real estate agents nationwide analyzing commission rate trends and regional variations.
Real Estate Witch Commission Analysis - Jon Stubbs, Real Estate Witch, updated February 2026. Analysis of realtor commission fees by state based on agent surveys and transaction data across multiple markets.
National Association of Realtors Settlement Agreement - National Association of Realtors, effective August 2024. Legal settlement establishing new guidelines for commission disclosure and buyer representation agreements nationwide.
