Tax season may not be anyone’s favorite time of year, but it is important to prepare so you can file on time, pay any taxes owed and make sure your records are in order. For the 2025 tax year, the IRS filing and payment deadline is Wednesday, April 15, 2026.
Here’s a practical checklist to help real estate professionals prepare for this tax season and the next one—plus National Association of REALTORS® member-benefit tools that can help you streamline recordkeeping year-round.
How Much Tax Might You Have to Pay?
Federal income taxes are progressive, based on income level. In addition, nearly 90% of NAR members operate as independent contractors, according to NAR Advocacy. If you’re among that group, you’re required to pay self-employment tax—that’s a percentage of your net earnings (generally 15.3%) that goes toward Social Security and Medicare. (By contrast, employees generally pay 7.65% of their income toward Social Security and Medicare, with employers contributing the rest.)
Depending on where you live, you may also have state and local and state tax liability. Know your state’s specific tax laws or consult with a tax expert when filing.
What About Quarterly Self-Employed Tax Payments?
Although employees generally have taxes withheld from their pay, self-employed taxpayers are required by the IRS to make estimated tax payments every quarter. The quarterly tax due dates for 2026 are:
- April 15, 2026
- June 15, 2026
- September 15, 2026
- January 15, 2027
To avoid penalties, your quarterly payments must equal at least 90% of the current year’s income tax liability or 100% of the previous year’s liability. For more information about self-employment taxes, we recommend bookmarking these IRS resources.
Whether you prepare your taxes yourself or work with a CPA, gathering accurate records throughout the year can help you identify eligible deductions and reduce last-minute stress.
Costs and Deductions to Track and Use for Tax Submissions
In addition to retirement contributions, self-employed real estate professionals may be able to deduct a range of business expenses to help reduce taxable income.
This includes but is not limited to:
Core Business Deductions
- Home office space, which is a dedicated workspace used exclusively for business
- Office rent or lease payments, if you rent a physical office space
- Business insurance premiums like E&O, liability and property
- Startup costs up to $5,000 in the first year of business
- Professional licensing and renewal fees
- Association dues like NAR, local MLS and any others
Marketing and Advertising
- Advertising deductions including online listings, print, billboards, signage, etc.
- Website design, hosting and maintenance fees
- Business cards, brochures and printed marketing materials
- Branded merchandise and promotional items
- Photography and videography for listings
- Staging costs for listed properties
Software and Phone Bills
- The percentage of your internet and phone bill attributable to business
- The cost of your CRM and other business software subscription services, such as BombBomb and Follow Up Boss, well as the cost of lead generation tools, such as products from Realtor.com® and Zillow
- The percentage of your computer, tablet and smartphone costs attributable to business
- Cloud storage and productivity tools
Travel and Transportation
- Vehicle-use deductions through mileage or the actual expense method
- Business travel deductions including flights and hotels, as well as conference costs and client meetings
- Parking fees and tolls
Meals and Entertainment
- Fifty percent of your food when meeting clients or colleagues for a meal
- Up to $25 per client per year for closing or appreciation gifts
Education and Professional Development
- Education deductions on courses, certifications and designations
- Subscriptions to industry publications and market reports
Financial and Legal
- Loan and credit interest deductions on business loans and credit cards used for business. Note: It’s highly recommended that you use a separate credit card for business purchases. If you mingle business and personal expenses on one card, be sure that you’re deducting only the interest on the business-related purchases.
- Accountant, bookkeeper and tax preparation fees
- Legal fees like contract review and dispute resolution
Health and Benefits
- Health insurance premium deductions for self-employed individuals
- Self-employed retirement contributions to your SEP-IRA and Solo 401k accounts
- HSA contributions, if you’re enrolled in a qualifying high-deductible health plan
As an NAR member, you have access to a range of benefits that can help with tax season. NAR partners with organizations that can help you track the following expenses:
- Car mileage and fuel costs
- Rental property costs (if applicable)
- Reduce taxes with the right investments
Track Car Expenses With Sentrilock SAM® Mileage
Busy real estate professionals are always on the road, which means mileage is a big expense — one that can be written off. But tracking every mile for the year can feel overwhelming.
It can become such a burden that you might put it off until April and then become so overwhelmed that you give up on take your rightful deduction.
To help you stay focused on your clients without missing a valuable tax deductions, SentriLock SAM® Mileage is a member benefit that can bridge the gap for you. For SentriLock users, it’s included in the Pro and Office tiers of SentriKey Showing Service®, helping eligible users capture mileage activity more efficiently.
Record Rental Property Income and Deductions With RentRedi
Whether you own rental property or work with investors who do, you understand the importance of keeping organized financial records for tracking property income and expenses—especially when preparing for tax season.
Rental property deductions are different from those associated with a primary residence, so accurate recordkeeping is critical when evaluating potential deductions and preparing documentation.
NAR REALTOR Benefits® partner RentRedi provides a full accounting suite designed specifically for landlords and real estate investors. It’s designed to keep all your rental financials organized in one place. You can use RentRedi to:
- Record rental income automatically from rent payments
- Track out-of-pocket expenses
- Log repairs, maintenance and capital improvements
- Add operating costs like insurance, utilities and property management expenses
- Categorize transactions for clear financial reporting and tax preparation
This centralization of income, expenses and documentation in one platform makes it easier to manage your portfolio, support clients and prepare accurate records for tax filing, without digging through spreadsheets or paper files later.
Learn more about RentRedi’s accounting tools: https://rentredi.com/accounting
Reduce Your Tax Burden and Diversify Your Investment Portfolio With IRAR
Whether you’re an independent contractor or employee, it’s critical to save for retirement through either an after-tax or tax-deferred retirement account. As a real estate professional, you should be aware of the opportunities outside the traditional retirement accounts that make it possible for you to save more for your future and reduce your current tax bill.
One option is to open a self-directed Solo 401(k). Member benefits partner, IRAR Trust Company, offers NAR members and their clients discounted rates on self-directed retirement options like the Solo 401(k).
These accounts have higher contribution limits than traditional IRAs, which allow for bigger tax deferrals, and enable you to grow your retirement savings faster.
For agents without full-time employees (other than a spouse, where applicable), a Solo 401(k) may be a retirement strategy worth discussing with a tax or financial professional. After establishing the plan, you may qualify for an IRS startup tax credit of $500 per year for up to three years.
For 2025, total contributions to a Solo 401(k) can reach up to $70,000, providing a potential tax deferral dramatically higher than the $7,000 limit for Traditional and Roth IRAs.
A Solo 401(k) also allows you to invest in real estate and other alternative assets, along with the ability to access participant loans, letting you borrow from your retirement account if needed. This combination of flexibility, control and higher contribution limits can help you grow your retirement savings faster and more strategically.
By keeping organized records, tracking deductible expenses throughout the year and taking advantage of available NAR member benefits, real estate professionals can reduce stress and make more informed financial decisions. Whether you file on your own or work with a tax professional, staying proactive now can help you maximize deductions, minimize surprises and keep your business on solid financial footing year-round.
Note: Information in this article does not constitute legal or financial advice. Always seek the help of a qualified tax expert or Certified Public Accountant.
