Los Angeles Home Buyer Rebate: How Much Cash You Get Back
Commission rebates to buyers are legal in Los Angeles. Most buyers can get about 2% of the price back in cash at closing, roughly $20,500 on a median-priced Los Angeles home.
Look up your rebate
For example, $500,000
What is a commission rebate in Los Angeles?
When you buy a home in Los Angeles, the seller usually pays your agent a commission of around 3% of the price, already built into what you pay. A commission rebate is when your buyer's agent gives part of that back to you, in cash, at closing. It is legal in California, and it is your own money returned to you at no extra cost.
How much is a rebate on a Los Angeles home?
The recent median Los Angeles home price is about $1,025,000 (Redfin, Los Angeles median sale price, 2026). A 2% buyer rebate on that is roughly $20,500, paid to you at closing. Enter your own price above to see your number.
Frequently asked questions
What is a commission rebate in Los Angeles?
A commission rebate in Los Angeles is when your buyer's agent returns part of the commission they earn on your purchase to you, in cash, at closing. The buyer's-agent commission is already built into the home's price, so a rebate simply hands part of that money back to you.
Are buyer commission rebates legal in Los Angeles?
Yes. Los Angeles follows California law, and commission rebates to buyers are legal in California. A licensed Los Angeles agent may rebate part of their commission to the buyer they represent.
How much is a buyer rebate in Los Angeles?
About 2% of the purchase price, paid to you at closing. On a $1,025,000 Los Angeles home (the recent median) that is roughly $20,500.
Are commission rebates taxable in Los Angeles?
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 instead of paying tax on it (IRS Letter Ruling 157111-06). This is general information, not tax advice.
What is the largest commission rebate I can get in Los Angeles?
There is no legal cap in California. Rebates commonly run about 2% of the price, and some rebate-friendly Los Angeles brokerages return more. On a $1,025,000 home a 2% rebate is about $20,500. Get the exact amount in writing before you sign a buyer-representation agreement.
Official sources
See the full California rebate guide and rules →
This is general information, not legal or tax advice. Rules change, so confirm the current rule with the California Department of Real Estate, Cal. Bus. & Prof. Code § 10137 (linked above) before you rely on it.
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