What should a real estate agent track for taxes?
Track four numbers: gross commission per closing, business expenses, deductible miles, and the money you have set aside for taxes. Most agents are independent contractors, so no one withholds tax from a commission check. A year-end guess about any of the four costs you a deduction or a penalty.
Ask a CPA which expenses apply to you. Marketing, MLS and association dues, lead costs and home office are the usual conversations.
When are quarterly estimated taxes due for real estate agents?
Independent-contractor agents generally pay estimated tax four times a year, on April 15, June 15, September 15 and January 15 of the next year. A date that falls on a weekend or holiday moves to the next business day. Your CPA can tell you what share of each commission to set aside so a slow quarter does not catch you short.
What is the IRS mileage rate for real estate agents in 2026?
The IRS business standard mileage rate is 76 cents per mile for miles driven on or after July 1, 2026. It was 72.5 cents per mile from January 1 through June 30. At 76 cents, 10,000 business miles is a $7,600 deduction, if your log can prove them.
A usable log shows the date, start and end points, the business purpose and the miles for every trip. A showing, a listing appointment, a closing and a trip to the title office all qualify as business purposes.
Which accounting software is best for agents and brokers?
Pick by the size of the business. A solo agent needs commission and expense tracking. A brokerage or team needs payroll, trust accounting and multi-user access.
| If you are |
Start with |
Why |
| A solo agent |
Realtyzam |
Tracks commissions, expenses and profit and loss, and links to your bank accounts |
| A broker or team lead |
QuickBooks |
Handles multi-user books and payroll |
| A freelancer-style agent who invoices |
FreshBooks or Xero |
General small-business accounting with invoicing |
| Driving most days |
MileIQ or Hurdlr |
Detects drives in the background so you classify trips instead of logging them |
Do I need a separate mileage tracker?
Yes, if you drive for work more than occasionally. Accounting software records money. A mileage app records the drives, and the IRS wants a log for the deduction. MileIQ and Hurdlr both run in the background and let you sort each trip as business or personal.
Can brokerage software or a CRM replace accounting software?
Only for basic needs. Brokerage platforms and CRMs often include simple commission or expense tracking, but many lack payroll and HR features. Brokers who hold client funds also need trust-account handling, so check your state real estate commission’s rules and ask your CPA before you retire a dedicated tool. Compare options on our Brokerage Software and CRM Software pages.
What should you look for in real estate accounting software?
- Bank and credit card sync, so expenses arrive without typing
- Commission and split tracking per transaction
- Reports your CPA can use at tax time, and an easy export
- W-2 payroll, if you pay agents or staff
- Cloud access from your phone
- Mileage logging, built in or through an integration
How do you get started?
- Hire a CPA right after you pass the license exam.
- Open a separate business checking account.
- Set up one commission tracker and one mileage and expense app, then try each on a free trial.
