In a nutshell:
No, the refund is not taxable. The IRS has given guidance that commission refunds do not need to be reported as income. You can review an excerpt from the letter ruling below:
"In the present case, a payment or credit at closing from Taxpayer represents an adjustment to the purchase price of the home and generally is not includible in a purchaser’s gross income."
If you have addition questions, we suggest consulting with a CPA or other tax professional.
Want to learn more?
If you would like to learn more about homebuyer commission refunds, we encourage you to check out the US Department of Justice’s informative overview of the practice.