Estate Agent Commission Calculator
From the sale price and commission rate, compute the estate agent commission and the total with tax, plus the seller's net proceeds. Hong Kong agency commission is generally not subject to VAT.
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At a glance:Estate agent commission is the service fee paid to the agent for brokering a property deal, usually a percentage of the price. In many overseas markets the commission is a VAT/GST-able service (e.g. UK adds 20% VAT), greatly raising the real cost. Hong Kong's simple low-tax system generally does not VAT-rate agency commission, so the commission amount is essentially the amount paid; but it is still sizeable — residential convention is about 1% of price, paid by both buyer and seller. This calculator takes price, rate and (optional) tax to give the commission, total with tax and the seller's net after commission; 0% tax = Hong Kong, an overseas rate enables cross-border comparison of the true 'low headline but taxed' cost.
Formula
Commission = sale price × commission rate.
Commission tax = commission × tax rate.
Total with tax = commission + commission tax.
Seller net = sale price − total with tax.
$$C = P\times c,\quad T = C\times t$$$$\text{Total} = C+T,\quad \text{Net} = P-(C+T)$$How to Use
- Enter the property sale price.
- Enter the commission rate (Hong Kong residential commonly 1%).
- Enter the commission tax rate: 0% for Hong Kong; an overseas VAT rate for comparison.
- Get the commission, tax, total with tax and seller net.
Hong Kong case (commission tax 0%): commission at different prices and rates
| Sale price (HK$) | Commission rate | Commission (HK$) | Total with tax (HK$) |
|---|---|---|---|
| 6,000,000 | 1% | 60,000.00 | 60,000.00 |
| 6,000,000 | 2% | 120,000.00 | 120,000.00 |
| 10,000,000 | 1% | 100,000.00 | 100,000.00 |
| 10,000,000 | 2% | 200,000.00 | 200,000.00 |
Hong Kong does not VAT-rate commission, so total with tax equals the commission; at the same price, raising the rate from 1% to 2% doubles the commission — every 0.1% negotiated on a multi-million property is tens of thousands of dollars.
Case Studies
Case 1: Hong Kong sale commission
Mr Chan sells his home for HK$6,000,000 at a 1% commission rate, Hong Kong does not VAT-rate commission.
Commission = 6,000,000 × 1% = HK$60,000, tax 0, total HK$60,000; seller net after commission = HK$5,940,000.
Since Hong Kong does not add tax, the commission amount is the amount paid — but note the buyer usually also pays the agent 1% separately.
Case 2: Cross-border comparison (overseas VAT)
Ms Wong compares selling an equivalent HK$6,000,000 property in a market with 20% VAT, same 1% commission rate.
Commission HK$60,000, plus 20% VAT = HK$12,000, total HK$72,000 — HK$12,000 more than Hong Kong.
This shows that for overseas property costs you must include the local commission VAT, not just the rate, to compare fairly with Hong Kong (no commission tax).
FAQ
Is Hong Kong estate agent commission subject to VAT?
No. Hong Kong has a simple tax system with no general consumption tax or VAT/GST, and agency commission is generally not subject to such tax, so the commission amount is essentially the amount paid. This calculator defaults the tax rate to 0 to reflect Hong Kong.
What is the usual Hong Kong property commission?
Residential convention is about 1% of the price, and buyer and seller each typically pay the agent 1%. The rate is negotiable; higher-value or slow-market deals often have room to negotiate. Leasing has its own convention (commonly half to one month's rent).
Why enter a tax rate option?
For cross-border comparison. 0% gives the local Hong Kong amount; if you are costing a UK/Europe deal with VAT, enter the local rate (e.g. UK 20%) to see the real commission-with-tax difference.
Besides commission, what other property costs are there?
The buyer usually also pays Ad Valorem Stamp Duty (AVD), legal fees, mortgage-related fees; the seller may face Special Stamp Duty (SSD) for short holding, legal fees and early-repayment penalties. Commission is only part of total transaction cost.
Can commission be paid after completion?
Agency commission is generally paid on formal completion (closing), with the exact timing and amount per the estate agency agreement (consent form) you sign — read the rate and payment terms before signing.
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References
This calculator's content is reviewed by our Licensed Property & Wealth Advisory team. Results are for reference only; please refer to the relevant authorities for the official figures.