Real Estate Commission by State: Highest and Lowest
July 12, 2026
Real estate commission isn't set nationally, and it isn't the same everywhere. A February 2026 survey of 533 agents found a real spread between states, from 4.50% up to 6.20%.
Where commission runs highest
| State | Average total commission |
|---|---|
| Michigan | 6.20% |
| Tennessee | 6.05% |
| Alabama | 5.96% |
| Missouri | 5.94% |
| South Carolina | 5.88% |
Where commission runs lowest
| State | Average total commission |
|---|---|
| Washington DC | 4.50% |
| New Jersey | 5.20% |
| Maryland | 5.41% |
| California | 5.47% |
| Oregon | 5.51% |
Why the gap exists
Nothing sets these rates by law. They reflect local norms: how competitive the agent market is, typical home values, and how much negotiating happens in each area. A state with lower average rates usually has a more competitive brokerage market or a customer base more used to negotiating, not a legal cap.
What this means for your sale
The gap between the highest and lowest state average is 1.70 percentage points, which is a real difference in dollars on any decent-sized sale. On a $400,000 home, that's the difference between roughly $18,000 (at 4.50%) and $24,800 (at 6.20%) in total commission.
Check your own state's average commission before you start negotiating with an agent, so you know whether a quoted rate is in line with your market or on the high side. Then run the exact numbers, your price and your rate, through the real estate commission calculator.