20 Real Estate Agent Tax Deductions (2025)
Updated on February 20, 2026 | 10 min. read
🌟 KEY TAKEAWAYS
Making use of tax deductions as a realtor will help you save money on your income tax.
Tax deductions are a legitimate way to avoid some taxation and save more money.
Real estate agents are eligible for a wide variety of tax deductions.
Expenses such as client entertainment, personal wardrobe, and haircuts aren’t deductible.
Accounting software can be an invaluable tool for saving time and tracking deductions year-round.
20 tax deductions for real estate agents
As a real estate agent, it’s important to learn about the realtor tax write-offs below to ensure you’re able to track and organize your expenses to help save money and make tax time a breeze.
1. Self-employment tax deduction
Assuming you’re a self-employed real estate agent, your income will be subject to the standard self-employment tax of 15.3%. This accounts for Social Security and Medicare taxes, but it can still be a substantial expense. Thankfully, 50% of this cost is tax deductible, meaning you’ll recoup half of it in the end.
2. State and local taxes
The state and local tax (SALT) deduction allows taxpayers to deduct some of the tax they pay to state and local governments on their federal returns. The major stipulation is that you need to itemize your tax deductions (versus taking the standard deduction amount) in order to claim this one. For the tax year 2025, the maximum amount for this deduction is $40,000 for single filers, heads of household, and married filing jointly. For married filing separately, the limit is $20,000 per person.
3. Home office deduction
As a real estate agent, you likely have a home office as a primary or secondary workspace. If your home is your principal place of business, you can deduct the costs from your taxable income when it’s time to file. You’re allowed to deduct the costs of the entire portion of the home that you use exclusively as your home office. The current IRS simplified method lets you deduct $5 per square foot of home office space if you work there regularly, up to a maximum of 300 square feet and $1,500. You can also figure out the percentage of the home you use exclusively as your home office. With this regular method, which uses the actual expenses you incurred, you may be able to deduct part of your mortgage interest, real estate taxes, rent, insurance, home depreciation, and utilities. This method requires you to maintain meticulous cost records.
4. Office supplies deduction
Save your receipts for basic real estate office supplies like paper, pens, and paper clips. Office-related expenses for any items considered usual, reasonable, and necessary by the IRS for your industry can be fully deducted from your taxes.
5. Travel and transportation
Travel and transportation are one of the most important tax write-offs for real estate agents. Since most agents are constantly driving to and from listing appointments, showings, and open houses, it’s important to track and deduct transportation costs, such as mileage and fuel, for their personal vehicles. If you do any other traveling for work (e.g., conferences or traveling for listings), you can also make a tax deduction for travel costs like flight tickets, hotel expenses, taxi fare, dry cleaning, and tips. Additionally, you may be able to deduct 50% of the cost of your business meals.
Make sure to track your driven mileage throughout the year. You may use the IRS standard mileage rate ($0.70 per mile for business use in 2025) or keep track of actual expenses you incur.
6. Advertising and marketing expenses
Realtors often spend a significant amount on advertising and marketing for their real estate business. Fortunately, you can deduct the cost on your yearly tax return as a business expense. The only requirement for advertising expenses is that they be considered necessary for your business.
7. Education, training, trade shows, seminars, and conventions
Many real estate agents set aside time throughout the year for personal development and networking. These are a great way to meet new prospects, network with peers, and gain higher certification and industry knowledge—plus, they make a great tax deduction. Costs for these work-related events and education are deductible on your tax return. Registration fees for these events (as well as travel and lodging costs) are generally 100% deductible.
8. Legal and professional fees
If the IRS considers the use of lawyers and other professionals ordinary and necessary for your industry, you can deduct their fees from your taxes. Since most real estate agents are known to routinely use the services of these specialized professionals, you can write off their fees when filing your return for your real estate agent business.
9. Professional memberships
If you’re a member of a networking group, real estate business association, chamber of commerce, or any other kind of professional organization, you can write off your professional membership fees as deductible business expenses when filing your federal tax return.
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10. Health insurance premiums
As many real estate agents pay for their own health insurance premiums, it’s good to know you can deduct the cost of your health insurance premiums from your yearly tax return. You can also deduct other medical expenses if you are itemizing your deductions.
11. Desk fees
Do you pay desk fees to your brokerage or rent an office space or a desk to conduct your business? If so, you’re able to deduct this cost from your federal income tax for your real estate business. However, you won’t be able to claim this deduction if you’re also claiming a deduction for home office use while performing the same work at both locations. Think carefully to determine which of these two tax deductions will be more advantageous for your tax situation.
12. Equipment costs
Equipment such as computers, tablets, scanners, printers, and even lockboxes are a common business expense for real estate agents. They can all be deducted from your income tax return, as long as you’re able to prove that they’re ordinary and necessary for your real estate business, according to the IRS. If they are more expensive items, usually above $2,500, they can be deducted as an asset via regular or bonus depreciation deductions. Otherwise, the equipment should be deducted as office-related expenses.
13. Charitable contributions
With charitable donations, you can give back to your community while lowering your taxes. If the deductions meet certain criteria, charitable donations are deductible if you itemize deductions on your individual tax return. You need to ensure your donation is to a qualifying, tax-exempt charitable organization in order to claim this deduction, which is limited to 20% to 60% of your AGI, depending on the type of contribution (cash, non-cash assets).
There is also a more advantageous way to deduct donations. If the payment is directly related to your business as a real estate professional and you can reasonably expect a financial return (such as advertising or marketing opportunities), the donation can be 100% deducted as an ordinary business expense.
14. Business Meals
Business meals with clients are another common expense for real estate agents. The cost of these meals can be deducted up to 50%, which can make a big difference at tax time. Travel meals are also in this category. Be sure to save all restaurant receipts when meeting with clients and prospects.
15. Bank fees and interest
Your bank fees are considered ordinary and necessary as a self-employed real estate agent, so you can subtract many of them from your overall tax liability. Eligible deductible business expenses include service fees, overdraft fees, and transfer fees, as well as your monthly account fee. If you use a credit card for your business, interest payments are also a valid deductible expense. Make sure to have a separate bank account and card for your business income and expenses to take advantage of this deduction.
16. Software costs
If you need specialized software to browse listings, scan documents remotely, or do any other essential part of your job, be sure to deduct the costs from your taxes. Software licenses and software subscriptions can add up, so be sure to factor them in when calculating your deductions for the year.
17. Tax preparation fees
If you’re a real estate agent who runs your business as a self-employed individual, you can deduct the costs of your business tax preparation (both federal and state), ensuring you make the most of your taxes without incurring extra costs in the long run. The money you spend on filing your business tax return with the help of tax preparation software can be counted as a business expense as well. The preparation of your personal tax return is not deductible.
18. Phone bill
As a real estate agent, your phone is an essential part of getting your work done and connecting with clients. If you have a phone and service plan dedicated strictly to work, you’re able to write off the cost as deductible business expenses on your tax return. If you use your personal cell phone to communicate with your clients, you can deduct the percentage of your phone bill that you use for your business.
19. Depreciation
If you own property that is used for your business, you can write off a portion of it as depreciation on your tax return. This can go for a professional vehicle or an office space, for example. Also, if you use part of your home as a home office, you can deduct depreciation on the portion of the house. Have a look at the IRS’s Modified Accelerated Cost Recovery System (MACRS) to calculate depreciation for tax deduction purposes.
20. Property insurance
Though you generally can’t deduct homeowners' insurance or premiums from your taxes, this isn’t always the case if you work from home. You may be able to deduct a percentage of your homeowner’s insurance according to the rate you calculate when deducting your other home office expenses.
Enhance your tax preparation with FreshBooks
While the world of deductions and tax loopholes for realtors can be complex, you don’t have to navigate it alone. FreshBooks accounting software is an incredibly simple way to track, organize, and manage these expenses throughout the tax year. Plus, FreshBooks makes it easy to compile all your expenses into a neat list of itemized deductions when it's time to file. This is a great way for busy real estate agents to save precious time and money during tax season. Using dedicated real estate accounting software can further streamline this process.
Ready to give it a shot? Try FreshBooks free today.
Still curious about tax write-offs and how to make them work for you? Learn more about small business tax deductions.
FAQs about real estate agent tax deductions
Do you have more questions on deductions and what real estate agents can write off? Here’s everything you need to know.
Do realtors file Schedule C?
For tax purposes, real estate agents are usually considered self-employed, independent contractors. This means that, in almost all cases, they will need to file a Schedule C (Profit or Loss From Business) on Form 1040 when filing their income taxes. They can also create a corporation for tax purposes and file their business tax return using Form 1120 or 1120-S.
Can realtors write off haircuts?
While looking sharp is an important part of becoming a successful real estate agent, haircuts and stylist appointments are considered personal hygiene expenses and are not deductible from your taxable income.
Can realtors write off gas?
Yes, realtors can (and should) write off fuel expenses for their vehicles if they use the actual cost method for their car expenses. Provided your car is used primarily, or only for work, you should save your gas station receipts and ensure you’re deducting them when it’s time to file your taxes, as fuel and other actual car expenses or mileage are fully deductible business expenses. Otherwise, fuel expenses are covered under the IRS standard mileage deduction.
What are some tax deductions for real estate agents?
Tax deductions for real estate agents refer to any business expenses a realtor incurs that can be deducted from their taxable income later. This can refer to marketing deductions, home office deductions, health insurance premiums, office supplies expenses, and much more. Understanding and tracking these deductions throughout the year will make it easier to save money on your tax liability when it’s time to file.
How many miles can a realtor deduct on taxes?
Provided you drive the miles for business, there’s no limit to how many miles you can claim as a deduction on your real estate tax return. For the 2025 tax year, the standard mileage deduction rate is set at $0.70 per mile for business use, which can translate to significant savings depending on how much you drive in an average year. It’s also important to track your mileage if you use the car for personal and business purposes and use the actual cost method.
More useful resources
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