Payroll Dad
Dad’s short answer
For a real estate agent who owns an S corp, a reasonable salary usually starts with what employers pay real estate agents: a national median of $52,830, with the middle half earning $40,040 to $82,020. Adjust for your state, your hours and how much of the profit comes from your own work, then write down why.
- National 25th percentile $40,040, median $52,830, 75th percentile $82,020 (BLS, May 2025).1
- State medians run from $38,180 in Arkansas to $123,770 in District of Columbia.2
- The IRS looks at factors like your duties, your hours and what comparable businesses pay.3
- Run your numbers in the S-corp salary calculator, with real estate agent already picked.
National pay for real estate agents
These are annual wages BLS measured for Real Estate Sales Agents (SOC 41-9022) in May 2025, across about 193,370 jobs.1 The median hourly wage is $25.40.
| 10th | 25th | Median | 75th | 90th | |
|---|---|---|---|---|---|
| Annual wage | $32,970 | $40,040 | $52,830 | $82,020 | $123,590 |
BLS surveys employers about employees. It doesn’t cover the self-employed or owners of unincorporated firms. Wages count commissions and tips, not overtime or year-end bonuses, and annual figures assume a full-time year of 2,080 hours.4
Real Estate Agents pay by state
Pay varies a lot by state, so your state’s row is usually a better comparison than the national number. The highest state medians are District of Columbia ($123,770), New York ($102,990), New Jersey ($99,990). The lowest are Arkansas ($38,180), Mississippi ($39,550), Kansas ($39,770).2 Each “Run it” link opens the calculator with your state picked.
| State | 25th percentile | Median | 75th percentile | Calculator |
|---|---|---|---|---|
| Alabama | $38,890 | $60,890 | $89,400 | Run it → |
| Alaska | $71,390 | $89,170 | $103,540 | Run it → |
| Arizona | $41,250 | $58,780 | $94,330 | Run it → |
| Arkansas | $30,640 | $38,180 | $86,260 | Run it → |
| California | $45,520 | $57,560 | $78,250 | Run it → |
| Colorado | $37,040 | $63,670 | $95,360 | Run it → |
| Connecticut | $42,850 | $46,770 | $67,710 | Run it → |
| Delaware | $36,950 | $47,180 | $58,240 | Run it → |
| District of Columbia | $44,180 | $123,770 | $123,770 | Run it → |
| Florida | $39,330 | $49,310 | $79,990 | Run it → |
| Georgia | $36,980 | $46,730 | $73,880 | Run it → |
| Hawaii | $43,810 | $46,220 | $64,890 | Run it → |
| Idaho | $30,280 | $39,820 | $54,690 | Run it → |
| Illinois | $38,060 | $59,220 | $61,790 | Run it → |
| Indiana | $37,790 | $46,880 | $61,990 | Run it → |
| Iowa | BLS doesn’t publish this one. Use the national range. | Run it → | ||
| Kansas | $36,990 | $39,770 | $51,000 | Run it → |
| Kentucky | $39,570 | $58,610 | $76,040 | Run it → |
| Louisiana | $31,110 | $45,850 | $62,350 | Run it → |
| Maine | $33,780 | $56,930 | $78,630 | Run it → |
| Maryland | $43,070 | $52,630 | $77,990 | Run it → |
| Massachusetts | BLS doesn’t publish this one. Use the national range. | Run it → | ||
| Michigan | $40,140 | $57,880 | $78,190 | Run it → |
| Minnesota | $42,240 | $46,410 | $62,070 | Run it → |
| Mississippi | $29,050 | $39,550 | $61,290 | Run it → |
| Missouri | $37,180 | $43,960 | $63,600 | Run it → |
| Montana | $67,590 | $79,100 | $91,170 | Run it → |
| Nebraska | $47,070 | $47,240 | $61,710 | Run it → |
| Nevada | $46,740 | $79,990 | $106,190 | Run it → |
| New Hampshire | $47,020 | $57,620 | $84,990 | Run it → |
| New Jersey | $63,000 | $99,990 | $111,990 | Run it → |
| New Mexico | $56,880 | $76,170 | $111,390 | Run it → |
| New York | $58,030 | $102,990 | $156,810 | Run it → |
| North Carolina | $39,740 | $51,240 | $99,890 | Run it → |
| North Dakota | $38,200 | $73,920 | $91,120 | Run it → |
| Ohio | $36,460 | $46,240 | $59,290 | Run it → |
| Oklahoma | $35,160 | $47,980 | $73,220 | Run it → |
| Oregon | $40,960 | $61,610 | $81,400 | Run it → |
| Pennsylvania | $46,500 | $56,040 | $78,840 | Run it → |
| Rhode Island | $41,890 | $60,310 | $68,530 | Run it → |
| South Carolina | $39,990 | $56,580 | $97,470 | Run it → |
| South Dakota | $47,960 | $65,170 | $77,070 | Run it → |
| Tennessee | $36,210 | $46,250 | $77,400 | Run it → |
| Texas | $36,920 | $45,740 | $74,660 | Run it → |
| Utah | $37,120 | $50,720 | $60,090 | Run it → |
| Vermont | BLS doesn’t publish this one. Use the national range. | Run it → | ||
| Virginia | $43,120 | $63,980 | $94,050 | Run it → |
| Washington | $63,010 | $79,130 | $100,360 | Run it → |
| West Virginia | $40,590 | $59,050 | $76,400 | Run it → |
| Wisconsin | $45,210 | $58,120 | $72,000 | Run it → |
| Wyoming | $30,940 | $49,990 | $62,930 | Run it → |
BLS published a median for 48 of the 51 (all 50 states plus DC). BLS withholds some estimates for quality or confidentiality reasons.4 Rural and metro pay can differ within a state.
What the IRS looks at
An S corporation pays a reasonable salary to an owner who works in the business before taking distributions.3 The tax code doesn’t set a number.5 The IRS lists factors instead, and they make a good worksheet:3
- Training and experience. Your license, years in the field and specialties.
- Duties and responsibilities. Everything you do, including the admin and management work.
- Time and effort devoted to the business. Full-time, part-time or somewhere between.
- Dividend history. How distributions have compared to salary over the years.
- Payments to non-shareholder employees. What you pay people doing similar work.
- Timing and manner of paying bonuses to key people. Regular and planned, or whenever there’s cash.
- What comparable businesses pay for similar services. The BLS tables on this page are a starting point.
- Compensation agreements. A written plan for your own pay.
- The use of a formula to determine compensation. A method you can repeat and explain.
The IRS also points to where the money comes from: your own services, the work of employees who aren’t owners, and capital and equipment. Receipts from your own services belong in salary. Receipts from the other two can come out as distributions.3 Administrative work you do for the rest of the business counts as services too.3 And reasonable compensation never exceeds what you actually receive from the company.3
What it means for real estate agents
- Commission income swings a lot. A steady salary through payroll plus distributions in strong months keeps things predictable.
- These figures are for real estate sales agents. Brokers are a separate BLS occupation and often earn more.
- If your team’s agents close a big share of the deals, that part of the receipts isn’t from your personal services.
Adjusting the number for your situation
- Hours. The BLS figures assume full time. If you work about 30 hours a week, scaling the median by 30/40 gives about $39,620. That’s a rough guide, not a rule.
- Two jobs in one. Many owners split their week between the work and running the business. If about 85% of your time is real estate agent work and the rest is management, blending the real estate agent median with the median for general and operations managers ($105,7701) gives about $60,770.
- Where the profit comes from. The more of the receipts come from your own services, the closer salary sits to profit. Receipts from employees and equipment can come out as distributions.3
- The ceiling. Reasonable compensation never exceeds what you actually receive.3 In a lean year, salary can come down with profit.
- Write it down. A one-page memo with the BLS row you used, your hours and your duties covers the factors the IRS lists. Update it each year.
2026 payroll tax on a real estate agent’s salary
Your salary carries Social Security and Medicare, both halves, plus a little FUTA. Distributions on top don’t carry employment taxes.3
| Salary | 2026 payroll tax, both halves |
|---|---|
| 25th percentile ($40,040) | $6,168 |
| Median ($52,830) | $8,125 |
| 75th percentile ($82,020) | $12,591 |
Example. Say the business makes $80,000 in profit before your salary. As a sole proprietor, self-employment tax on that is about $11,304. As an S corp paying the median salary of $52,830, payroll tax is about $8,125, a difference of about $3,179. The salary and payroll tax are business expenses, and running payroll and an S-corp return has its own costs, so look at the full picture with your CPA.
2026 figures: Social Security 6.2% each for employer and employee on wages up to $184,500, Medicare 1.45% each with no cap67, and FUTA at 6.0% on the first $7,000, which nets to 0.6% for employers who get the full 5.4% state credit.8 Self-employment tax is 15.3%, 12.4% for Social Security and 2.9% for Medicare9, figured here on 92.35% of net profit, the Schedule SE method. These leave out the 0.9% Additional Medicare Tax on high wages, state taxes and income tax.
Open the calculator for real estate agents →
Every business is a little different, so check with your CPA for your situation. Good CPAs love an owner who shows up with the homework done.
New to this? Start with how to pay yourself from an S corp, or see reasonable salary for other professions.
FAQ: S-corp salary for real estate agents
What’s a reasonable S-corp salary for a real estate agent?
There’s no single number. A common starting point is what employers pay real estate agents where you work. Nationally, BLS puts the median at $52,830, with the middle half between $40,040 and $82,020 (May 2025). Then adjust for your hours, your duties and how much of the profit comes from your own work.
Can a real estate agent pay themselves less than the median?
Yes, if the facts support it. Part-time hours, a newer practice, or profit that mostly comes from employees or equipment can all point lower. The IRS lists factors, not a formula. Write down why you picked your number.
Does my S-corp salary have to be more than my profit?
No. The IRS says reasonable compensation never exceeds what you actually receive from the company. If the business earned less than a typical salary, your salary can be lower too.
Where do these numbers come from?
BLS Occupational Employment and Wage Statistics, May 2025, for Real Estate Sales Agents (SOC 41-9022). They measure what employers pay employees in this occupation. They don’t include owners, overtime or year-end bonuses.
Is this tax advice?
No. It’s a starting point with sources. Every business is a little different, so check with your CPA for your situation. Good CPAs love an owner who shows up with the homework done.
Sources, checked Nov 2, 2026
Every number on this page comes from one of these pages. Prices change; if a vendor updates its page, theirs wins.
- BLS: Occupational Employment and Wage Statistics, May 2025 tables
- BLS: OEWS May 2025 state estimates
- IRS: S corporation compensation
- BLS: OEWS frequently asked questions
- IRS: Wage compensation for S corporation officers (FS-2008-25)
- IRS: Topic 751, Social Security and Medicare withholding rates
- SSA: Contribution and benefit base (2026: $184,500)
- IRS: Topic 759, Form 940 (FUTA tax)
- IRS: Self-employment tax (Social Security and Medicare taxes)