Brokerage & Commission Tax Calculator

1. Enter your commission

   The gross brokerage or commission amount paid to you.

2. Choose your filer status

   Filers pay 12%; non-filers pay double at 24%.

3. See the tax withheld

   The paying principal deducts this before paying you.

4. Check your net commission

   What you actually receive after withholding.

The agent does not pay this over themselves. The principal — the company, the insurer, the advertiser, the manufacturer — withholds it from the commission before releasing the money, and deposits it against the agent's account.

So the figure an agent should expect to receive is the invoiced commission less this deduction, and an agent quoting a rate without allowing for it will be short when the payment arrives.

Commission is not the same as a service fee

The distinction decides the rate. Acting as an intermediary and being paid a cut of somebody else's transaction is commission under Section 233. Being engaged to perform work for a fee is a service, withheld under Section 153 at different rates.

Property agents, travel agents and advertising agents sit near this line and are sometimes treated inconsistently by different payers. What matters is the substance of the arrangement, not the word used on the invoice.

If the payment is for services rather than commission, use the Section 153 calculator.

The non-filer rate is double

For an agent earning commission regularly, that difference compounds across every payment in the year. It is the clearest case on the site where registration pays for itself within weeks.

Where this stops

Whether the deduction settles your liability or is credited against a wider computation depends on the category of commission and your overall position. Check which applies before treating the year as closed.