California Home Buyer Rebate: See How Much Cash You Get Back
Commission rebates to buyers are legal in California. Most buyers can get about 2% of the home price back in cash at closing.
Look up your rebate
For example, $500,000
California rebate policy
In California, a buyer's agent may share part of their commission with the buyer they represent, and this is legal. Because the buyer's-agent commission is already built into the home's price, a rebate simply returns part of that money to you at closing.
California states that paying part of a commission to a buyer principal is permitted when disclosed to the seller. Cal. Bus. & Prof. Code § 10137
California rebates by city
Frequently asked questions
Are home buyer rebates legal in California?
Yes. Commission rebates to buyers are legal in California. Most buyers can get about 2% of the price back in cash at closing.
How much is a buyer rebate in California?
About 2% of the purchase price, paid to you in cash at closing. On California's median-priced home (about $854,000) that is roughly $17,080.
How do I get a rebate when buying a house in California?
Ask a buyer's agent, before you sign a representation agreement, whether they will rebate part of their commission. If they agree, get it in writing; it usually comes as a credit toward your closing costs or a check after closing.
Does a buyer rebate cost me anything?
No. The rebate comes out of the buyer's-agent commission, which the seller pays and which is already built into the home's price. A rebate simply returns part of that money to you, at no extra cost.
Is a buyer rebate taxable in California?
Generally no. The IRS treats a buyer rebate as a reduction in the home's purchase price, not income, so you lower your cost basis by the rebate amount instead of paying tax on it (IRS Letter Ruling 157111-06). This is general information, not tax advice.
Official sources
Explore other states
See how California's rebate ranks against every state →
See California closing costs and how a rebate offsets them →
In California, home buyers can typically get about 2% of the purchase price back as a commission rebate at closing, roughly $17,080 on California's median-priced home (about $854,000). It is legal here, and it returns money that is already built into the price.
This is general information, not legal advice. Rules change, so confirm the current rule with your state real estate agency (linked above) before you rely on it.
See rebates in all states