You have been working as a real estate agent. Now you are thinking about the next step: getting your broker license. A broker license lets you run your own brokerage, hire agents, and keep a bigger share of commissions.
But it takes work to get there. Here is everything you need to know for 2026.
Agent vs broker: what is the difference?
| Feature | Agent | Broker |
|---|---|---|
| Can work independently | No — must work under a broker | Yes — can operate alone |
| Can hire agents | No | Yes |
| Commission split | Splits with broker (50-80%) | Keeps full commission or takes splits from agents |
| Can open a brokerage | No | Yes |
| License level | Salesperson / agent | Broker / managing broker |
| Experience required | None (pre-licensing only) | 2-4 years as licensed agent |
Broker license requirements by state
Every state sets its own broker requirements. Here are the common ones:
| State | Experience | Broker Course Hours |
|---|---|---|
| California | 2 years as agent | 8 courses (360 hours) |
| Texas | 4 years + 900 experience points | 270 hours |
| Florida | 2 years as agent | 72 hours |
| New York | 2 years as agent | 120 hours |
| Illinois | 2 years as agent | 120 hours (managing broker) |
| Georgia | 3 years as agent | 60 hours |
| Pennsylvania | 3 years as agent | 240 hours |
| Ohio | 2 years as agent | 120 hours |
Check our state requirements page for your specific state details.
How to get your broker license: step by step
Step 1: Meet the experience requirement
Most states require 2 to 4 years as a licensed agent. Some states also require a minimum number of closed transactions. Check your state for the exact requirement.
Step 2: Complete broker pre-licensing education
Enroll in a state-approved broker course. This is separate from your original agent pre-licensing. Hours range from 60 to 360 depending on the state. Online options are available in most states.
Step 3: Pass the broker exam
The broker exam is harder than the agent exam. It covers everything on the agent exam plus brokerage management, trust accounts, agency law, and supervision of agents. Study hard.
Step 4: Submit your broker application
Apply to your state real estate commission with proof of education, exam results, experience, and a background check. Pay the application fee.
Step 5: Choose your path
Once licensed as a broker, decide what to do with it. You can open your own brokerage, become a managing broker at an existing firm, or simply keep your broker license and operate as an associate broker under another brokerage.
How much does it cost?
| Expense | Low End | High End |
|---|---|---|
| Broker pre-licensing course | $200 | $1,500 |
| Broker exam fee | $50 | $100 |
| Application fee | $50 | $300 |
| Background check | $30 | $100 |
| Total | $330 | $2,000 |
Is it worth it?
That depends on your goals. Here are the pros and cons:
- •Pro: You keep 100% of your commission or take splits from agents you hire
- •Pro: You control your own brand, marketing, and business decisions
- •Pro: You can build equity in a brokerage that you can sell later
- •Con: You take on legal responsibility for your agents transactions
- •Con: Opening a brokerage has startup costs — office, insurance, tech, compliance
- •Con: Managing agents takes time away from selling
Most successful brokers say the upgrade is worth it — but not until you have 3 to 5 years of strong sales experience and a business plan.
CE requirements for brokers
Brokers must complete CE just like agents. In many states, brokers need more CE hours than agents, including specific topics on brokerage management and supervision.
AgentCE tracks CE hours for both agent and broker licenses. Free for one license. Set up your state and track your progress from day one.
Related: Broker vs agent vs Realtor | License cost breakdown | How to get your agent license