The typical real estate salary in NYC is six figures, according to the Bureau of Labor Statistics. (Getty)
The agents on “Million Dollar Listing New York” close deals left and right, own multi-million dollar homes and boast closets full of designer suits. While that lifestyle sounds great to all of us, many hardworking agents will confirm, this isn’t an easy path towards fast cash. So, what is the typical real estate agent salary in NYC? Here, we’ll tell it like it is.
What’s the Average Real Estate Agent Salary in NYC?
According to the Bureau of Labor Statistics, the average real estate agent salary in NYC metro-area was $104,180 in 2018. By contrast, the website Glassdoor pegs the New York City average base real estate agent salary at $87,185 . If that figure is disappointing, keep in mind that the national average real estate agent salary is $50,598, according to Glassdoor. Glassdoor, however, also indicates that with additional cash compensation, the average real estate agent salary in NYC is estimated closer to $124,638.
How the Tax Code Impacts Real Estate Agent Salary
Many agents are not actually salaried. Instead, they are essentially self-employed, independent contractors. As such, they face a higher tax burden to cover their Social Security and Medicare contributions. According to the Internal Revenue Service website, the self-employed tax rate is slated at 15.3%, with 12.4% of gross income going towards social security and 2.9% going towards Medicare. That’s double the 7.65% rate traditionally salaried employees pay.
Healthcare and Paid Time Off for Real Estate Agents
As an independent contractor, most agents miss the benefits that some salaried employees get. Before joining a brokerage, agents should check to see if they offer group health insurance packages, or access to any sort of retirement plan. Otherwise, agents must purchase their own healthcare on the New York State exchange, and set up their own retirements through a SEP (Simplified Employee Pension) or an IRA (Individual Retirement Arrangement) account.
Most brokerages also do not offer paid time off or sick days. Sometimes agents can win vacations by hitting sales goals or winning sales competitions. Aside from that most agents will have to take time (for sick leave, maternity leave or any other sort of leave) without pay.