Most real estate agents work as independent contractors (1099), even when affiliated with a brokerage, which means self-employment tax applies, but so does a wide range of deductions most agents underuse.
Common deductible expenses include: MLS and association dues, mileage for showings and client meetings (see the mileage tracker), marketing costs (signs, photography, staging, online ads), a home office if you have dedicated workspace (see the home office deduction calculator), continuing education and licensing renewal fees, and a portion of your phone and vehicle costs.
Because commission income is often irregular, quarterly estimated tax payments matter more than for salaried workers, underpaying can trigger a penalty even if you pay the full amount owed at filing. Use the tax estimate tool after each closing to keep a running estimate rather than being surprised in April.