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Texas Real Estate Sale: Costs & Commission Explained

Not a slice of what the house is worth — a slice of the cash that actually moves through the estate's hands.

Texas Estates Code §352.002

By the FigureMyTax Editorial Team · Reviewed 2026 · How we calculate

Quick answer: the ordinary 5-6% realtor commission applies as usual. The executor's own pay is 5% of cash received plus 5% of cash paid out — a formula built around cash flow, not the house's total value. See how this plays out for your own numbers in the Texas probate real estate sale calculator.

A cash-flow formula, not a value formula

Straight from §352.002: the standard commission is 5% on cash the estate takes in and 5% on cash it pays out. No commission applies to the estate's initial principal — so a house that simply passes to an heir without ever being sold generates no commission on its value at all, only the sale itself creates commissionable cash.

Life insurance never counts

Life insurance proceeds typically pass directly to a named beneficiary rather than flowing through the estate as a cash transaction the executor manages, so the statute excludes them from the 5% calculation entirely — regardless of how large the policy is.

The court can allow more, in unusual cases

Where an estate requires extraordinary time or effort, the court may allow reasonable compensation beyond the standard formula — but this isn't the default, and meticulous time and task records are what typically justify it.

The fee is taxable income to the executor

The commission counts as taxable income the executor must report on their own personal tax return — a detail worth planning around, separate from any state tax question on the sale itself.

Facing probate in Texas?

A local probate attorney can review your estate — many offer a free consultation.

Talk to a Texas attorney

The 5% cash-flow formula applies identically whether the estate is probated in Harris, Dallas, Travis, or any other Texas county.

Sale costs and commission — frequently asked questions

Why does Texas base the executor's fee on cash flow rather than estate value?

Texas Estates Code 352.002 ties compensation to the cash the estate actually receives and pays out, rather than the estate's full principal value — so a house that simply passes to an heir without being sold generates no commission on its value at all.

Why are life insurance proceeds excluded from the Texas executor commission?

Life insurance proceeds typically pass directly to a named beneficiary rather than flowing through the estate as a cash transaction the executor manages, so the statute excludes them from the 5% calculation entirely.

Can a Texas court award more than the standard 5% commission?

Yes — in unusual circumstances, such as an estate requiring extraordinary time or effort, the court may allow reasonable compensation beyond the standard 5% cash-flow formula.

Is the executor's Texas commission taxable income?

Yes — the commission is considered taxable income the executor must report on their own personal tax return, separate from any question of Texas state income tax on the transaction itself.

What does it cost to sell real estate during probate in Texas?

The ordinary 5-6% realtor commission applies as usual. The executor's own pay is 5% of cash received plus 5% of cash paid out — a formula built around cash flow, not the house's total value.

Keep going

Texas Probate Real Estate Sale CalculatorYour estimate, based on your answers Court Approval to Sell in TexasIndependent vs. dependent administration Capital Gains Tax on the Sale in TexasWhy the state bill is always zero Texas Executor Fee CalculatorThe 5% § 352.002 commission

This page provides general guidance only and is not legal, tax, or financial advice. Based on Texas Estates Code §352.002. Confirm current figures with a licensed Texas attorney or real estate professional before acting.