Real Estate Agent Tax Deductions: 2026 Checklist

If you're paid on a 1099, most of what you spend to run your business comes off your taxable income. Here are the deductions agents use most, the 2026 IRS numbers behind them, and the three that trip people up.

The 2026 numbers to know

Business mileage, Jan 1 to June 30, 2026	72.5¢ a mile
Business mileage, July 1 to Dec 31, 2026	76¢ a mile
Home office, simplified method	$5 a sq ft, up to 300 sq ft ($1,500)
Self-employment tax	15.3% (12.4% Social Security up to $184,500, plus 2.9% Medicare)
Business gifts	$25 per person per year
Business meals	Generally 50%

The IRS raised the mileage rate partway through 2026, so log the date of every trip. A mile in March and a mile in October aren't worth the same.

The deduction checklist

Car. Showings, listing appointments, open houses, inspections and closings. Pick the standard rate or actual costs. If you want the standard rate on a car you own, you have to use it in the first year the car is used for business.
Dues and fees. MLS, board and association dues, plus desk, tech and transaction fees you pay your brokerage.
License and education. Renewal fees and continuing education to keep your current license.
Insurance. E&O, and the business share of your auto policy if you deduct actual car costs.
Marketing. Signs, lockboxes, flyers, postcards, listing photos, staging you pay for, online ads and your website.
Software and phone. CRM, e-signature, AI tools and the business share of your phone and internet.
Home office. Only if the space is used regularly and only for business. A desk in the guest room counts. The kitchen table doesn't.
Client gifts and meals. Closing gifts count up to $25 per person per year. A meal with a client to talk business is generally 50% deductible.

Three things that trip agents up

Driving from home to the office is commuting. The IRS treats it as personal. If your home office is your main place of business, trips from there to showings usually count. Ask your tax pro how it applies to you.
The $25 gift cap is per person. A $150 closing gift to one buyer still deducts $25.
Self-employment tax is on top of income tax. On $58,100 of net earnings, the median Realtor gross income in NAR's 2025 Member Profile, the math is $58,100 × 92.35% × 15.3% = about $8,209. Half of it comes off your income for income tax, but you still pay it.

What to do this week

Start a mileage log today with the date, where you went, why and the miles. A phone note works if you fill it in the same day.
Pull this year's card and bank statements and tag every business charge. The expense tracker has the categories set up.
Mark January 15, 2027 on your calendar. That's when the last 2026 estimated tax payment is due, unless you file and pay in full by February 1.

This is general information, not tax advice. Rules depend on how you're paid and set up, so check with a tax professional before you file.

Sources

FAQ

Can real estate agents deduct mileage?

Yes, for business driving like showings, listing appointments and closings, if you're self-employed. The 2026 IRS rate is 72.5 cents a mile through June 30 and 76 cents from July 1. Driving from home to a regular office is commuting and doesn't count.

Can I deduct closing gifts for clients?

Yes, up to $25 per person per year. Anything above that isn't deductible as a gift.

Do real estate agents pay self-employment tax?

Agents paid on a 1099 generally do. It's 15.3% of 92.35% of net earnings, with the Social Security part capped at $184,500 for 2026. You can deduct half of it when figuring adjusted gross income.

Real estate agent tax deductions: the 2026 checklist