Tax Deductions for Real Estate Agents (2025)

Real estate agents are almost always 1099 independent contractors, which means your commission is taxed as self-employment income and your business expenses are yours to deduct. Agents drive constantly, market heavily, and pay a stack of board and license fees, so the write-offs add up fast when you track them.

Capture every real estate agent write-off

Every deduction below only counts if you can prove it. NeoReceipt scans each receipt, sorts it into the right Schedule C category, and logs your mileage, so nothing is missed at tax time.

Key takeaways

  • Real Estate Agents file as 1099 / self-employed, so business expenses are deductible on Schedule C.
  • Deductions cut both income tax and the 15.3% self-employment tax.
  • The biggest write-offs for real estate agents are listed below, with what each covers.
  • You need receipts and a mileage log to claim them.

Tax write-offs for real estate agents

Here are the deductions real estate agents most commonly claim. Each one lowers your net profit, and therefore your tax:

DeductionWhat it covers
Vehicle and mileageShowings, open houses, and client drives at 70 cents per mile for 2025, or actual costs. This is usually an agent's single largest deduction.
Marketing and advertisingListing photos, signage, mailers, social ads, your website, and branded materials.
MLS, board, and license feesMLS dues, local and national association fees, and your real estate license renewal.
Brokerage fees and desk feesCommission splits, desk fees, and franchise charges paid to your brokerage.
Home officeA dedicated workspace where you handle paperwork and calls, by square footage or the simplified method.
Phone and internetThe business-use share of your cell phone and home internet.
Client gifts and closing giftsDeductible up to $25 per client per year for gifts.
Software and CRMYour CRM, e-signature tools, lead-gen platforms, and transaction management software.
Continuing educationCE courses, designations, and coaching that maintain or improve your skills.
Professional servicesLegal, accounting, and tax-prep fees for your real estate business.
Staging and suppliesStaging costs, lockboxes, signage, and office supplies.

How these deductions lower your tax

As a real estate agent, your tax is based on net profit, which is your income minus these business expenses. Because both self-employment tax and income tax are calculated on that profit, every dollar you deduct is taxed at neither rate, saving most contractors roughly 25 to 40 cents on the dollar. The catch is documentation: you can only deduct what you can prove, so capturing receipts and miles through the year is what turns this list into real savings.

See what these deductions save you with our free calculators, then let NeoReceipt make sure you capture every one.

Frequently asked questions

Can real estate agents deduct mileage?+

Yes. Driving to showings, open houses, inspections, and client meetings is deductible at 70 cents per mile for 2025, or you can use the actual-expense method. Your commute from home to a regular office is not deductible, but a qualifying home office can make almost all of your business driving deductible.

Are MLS dues and license fees tax deductible?+

Yes. MLS dues, association and board fees, and your license renewal are all ordinary and necessary business expenses you can deduct on Schedule C.

Can I deduct client closing gifts?+

Yes, but the IRS caps business gift deductions at $25 per recipient per year. Branded items under $4 and incidental costs like engraving are generally excluded from that limit.

Do real estate agents pay self-employment tax?+

Yes. Most agents are 1099 independent contractors, so commission income is subject to the 15.3% self-employment tax plus income tax. Tracking deductions lowers both.

Related: Full 1099 Deductions List · 1099 Tax Calculator · How to File

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Every deduction, captured

See how real estate agents use NeoReceipt to claim every write-off before they file.

NeoReceipt saved me during tax season. As a freelance graphic designer, I had receipts scattered across emails and folders. In just three months, NeoReceipt automatically categorized over 400 receipts and helped me identify nearly $2,300 in deductible expenses I would have otherwise missed.
SMSarah MitchellFreelance Graphic Designer
I drive for Uber and DoorDash full-time, and tracking gas and maintenance receipts was a nightmare. After switching to NeoReceipt, I reduced my bookkeeping time from 4 hours a week to less than 20 minutes and had every expense ready for my accountant.
JRJames RodriguezRideshare Driver
As a real estate agent, I'm constantly on the road and collecting receipts from multiple vendors. NeoReceipt helped me recover over $4,100 in business deductions last year by ensuring nothing slipped through the cracks.
JPJessica ParkerReal Estate Agent

Reviews from early NeoReceipt users. Individual results vary.