What are the tax deductions I can take as a Real Estate Agent?

If you're a self-employed real estate agent and file Schedule C (Form 1040), you can deduct many ordinary and necessary business expenses related to earning income. These deductions can lower your taxable income and reduce the amount of tax you owe.   

Below are some of the most common tax deductions available to real estate professionals for the 2026 tax year (filed in 2027).

Common Real Estate Agent Tax Deductions

  1. Commissions and Fees
  2. Vehicle and Mileage Expenses
  3. Legal and Professional Service Fees
  4. Contract Labor and Wages
  5. Advertising and Marketing Expenses
  6. Business Assets and Depreciation
  7. Business Gifts
  8. Home Office Deduction
  9. Deductible Portion of Self-Employment Tax
  10. Business Meals
  11. Professional Meetings, Conferences, and Publications
  12. Education and Training Expenses
  13. Office Rent
  14. Business Insurance
  15. Office Expenses and Supplies
  16. Self-Employed Health Insurance Deduction

1. Commissions and Fees

You may be able to deduct business-related fees such as:
  • Bank fees
  • Business loan interest
  • Notary fees
  • Professional association dues
  • MLS fees
  • Licensing fees
  • Other charges directly related to operating your business
These expenses are generally reported as business expenses on Schedule C.

2. Vehicle and Mileage Expenses

Many real estate agents spend significant time driving to show properties, meet clients, and attend inspections.

You generally have two options:

Standard Mileage Method

You can deduct business miles driven using the IRS standard mileage rate if you qualify. For 2026, the standard business mileage rate is 72.5 cents per mile for January through June 2026 and 76 cents per mile for July through December 2026. 

Actual Expense Method

Instead of mileage, you can deduct the business portion of actual vehicle expenses, including:
  • Gas
  • Oil
  • Repairs and maintenance
  • Insurance
  • Registration fees
  • Depreciation

You generally cannot use both methods for the same vehicle in the same year.

Be sure to keep detailed mileage logs and vehicle records in case the IRS requests documentation.

3. Legal and Professional Service Fees

You can deduct fees paid to professionals who support your business, including:
  • Attorneys
  • Tax professionals
  • Accountants
  • Photographers
  • Home inspectors
  • Locksmiths
  • Home staging professionals
  • Cloud storage and software subscriptions
  • Transaction management platforms
These expenses are generally deductible when they are directly related to your real estate business.

4. Contract Labor and Employee Wages

Independent Contractors

Amounts paid to nonemployees may be deductible as contract labor expenses.

If you paid a contractor $600 or more during the year, you may need to issue Form 1099-NEC.

Employees

If you have employees and issue Form W-2, wages paid to those employees may be deductible. Employer-paid payroll taxes, such as Social Security, Medicare, and unemployment taxes, are generally deductible business expenses as well.

5. Advertising and Marketing Expenses

Marketing costs are typically deductible business expenses.

Examples include:

  • Online advertising
  • Social media promotions
  • Direct mail campaigns
  • Flyers and brochures
  • Yard signs
  • Billboard advertising
  • Newspaper and magazine ads
  • Business cards
  • Website hosting and maintenance

6. Business Assets and Depreciation

Equipment and property used in your business may need to be depreciated over time rather than deducted all at once.

Examples include:

  • Computers
  • Printers
  • Office furniture
  • Cameras
  • Lockboxes
  • Video equipment
  • Home staging inventory
Depending on the asset and circumstances, you may qualify for Section 179 expensing, bonus depreciation, or regular depreciation.

7. Business Gifts

You can generally deduct up to $25 per recipient per year for qualifying business gifts.

Examples include:

  • Closing gifts for clients
  • Holiday gifts for referral partners
  • Appreciation gifts for vendors
Keep records showing the recipient, cost, date, and business purpose.

8. Home Office Deduction

You may qualify for a home office deduction if you use part of your home:
  • Regularly and exclusively for business, and
  • As your principal place of business
Eligible deductions may include a portion of:
  • Mortgage interest
  • Rent
  • Property taxes
  • Utilities
  • Homeowners insurance
  • Repairs and maintenance
Both the simplified and actual-expense methods may be available depending on your situation.

9. Self-Employment Tax Deduction

Self-employed taxpayers must pay both the employer and employee portions of Social Security and Medicare taxes.

The good news is that you can generally deduct one-half of your self-employment tax as an adjustment to income. This deduction is calculated automatically when preparing your tax return.

10. Business Meal Expenses

Meals may be deductible when they have a legitimate business purpose.

Examples include:

  • Meeting with clients
  • Discussing transactions with business partners
  • Prospecting activities
In most situations, 50% of qualifying business meal expenses can be deducted. Be sure to keep receipts and documentation showing the business purpose of the meal.

11. Professional Meetings, Conferences, and Publications

Expenses related to maintaining and improving your professional skills are generally deductible.

Examples include:

  • Real estate conferences
  • Industry conventions
  • Networking events
  • Professional subscriptions
  • Trade publications
Associated travel expenses may also qualify, including:
  • Lodging
  • Transportation
  • Parking
  • Tolls
  • Qualifying meal expenses

12. Education and Training Expenses

Continuing education is often required to maintain a real estate license.

Common deductible expenses include:

  • Continuing education courses
  • Real estate training programs
  • Industry certifications
  • Professional development seminars
The education must generally maintain or improve skills needed in your current profession.

13. Office Rent

Rent paid for office space used in your business is generally deductible.

This may include:

  • Traditional office space
  • Shared office suites
  • Coworking memberships
If you qualify for a home office deduction, you may also be able to deduct a portion of certain home-related expenses instead of renting separate office space.

14. Business Insurance

Insurance premiums related to your business are generally deductible.

Examples include:

  • Errors and omissions (E&O) insurance
  • Business liability insurance
  • Office insurance
  • Property coverage
Personal insurance premiums are generally not deductible as business expenses.

15. Office Expenses and Supplies

Routine office expenses are typically deductible in the year they are purchased.

Examples include:

  • Paper
  • Pens and pencils
  • Printer ink
  • Postage
  • Envelopes
  • File folders
  • Software subscriptions
  • Internet services used for business

16. Self-Employed Health Insurance Deduction

If you are self-employed and have a net profit from your business, you may qualify to deduct health insurance premiums paid for:
  • Yourself
  • Your spouse
  • Your dependents
  • Certain children under age 27
Qualifying medical, dental, vision, and eligible long-term care insurance premiums may be deductible as an adjustment to income rather than a Schedule C business expense. The deduction is calculated using Form 7206. 

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