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Cliff tax: 4% at $5.3M, 5.5% at $10.6M

Los Angeles Mansion Tax — Measure ULA (2026)

Los Angeles's Measure ULA — the "United to House LA" transfer tax — went into effect April 1, 2023. It adds a significant transfer tax on high-value real estate sales in the City of Los Angeles (not all of LA County). The thresholds are CPI-adjusted annually, making it essential to verify current figures before any transaction.

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2026 Rate Table

Tax / FeeRateWho PaysNote
Base LA City Transfer Tax
Existing city tax, applies to all sales
$4.50/$1,000 (0.45%)Seller
Measure ULA Tier 1
On sales $5.3M–$10.599M (2025 threshold, CPI-adjusted)
4.0%Seller
Measure ULA Tier 2
On sales $10.6M+ (2025 threshold, CPI-adjusted)
5.5%Seller
CA State Documentary Tax
Statewide, applies separately
0.11%Seller
LA County Transfer Tax
County layer on top of city rates
0.11%Seller

Real-World Examples

$2M
~$9,000 city (0.45%) + ~$2,200 county+state (0.22%) = ~$11,200 — no ULA tax
$5.3M
~$212,000 ULA (4%) + $23,850 city + $11,660 county+state = ~$247,510 seller cost
$10.6M
~$583,000 ULA (5.5%) + $47,700 city + $23,320 county+state = ~$654,020 seller cost

What Catches People Off Guard

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Measure ULA is a CLIFF tax on the full sale price. A $5,300,000 sale triggers 4% on the entire amount ($212,000 in ULA tax alone). A $5,299,999 sale pays $0 ULA tax.

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Thresholds are CPI-adjusted each April 1. The 2025 thresholds were $5.3M and $10.6M — verify current thresholds at the LA City Finance website before any transaction.

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Measure ULA applies only within the City of Los Angeles, NOT all of LA County. Properties in Beverly Hills, Santa Monica, Culver City, Burbank, etc. are not subject to Measure ULA.

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Measure ULA applies to ALL property types — residential, commercial, and multi-family — with limited exemptions for certain affordable housing transfers.

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Sellers cannot deduct Measure ULA as a property tax for federal income tax purposes (it's a transfer tax, not a property tax).

Frequently Asked Questions

What properties are subject to LA's Measure ULA mansion tax?

All real property sales within the City of Los Angeles that exceed the threshold ($5.3M as of 2025). This includes residential homes, condos, apartment buildings, commercial real estate, and vacant land. Properties in incorporated cities within LA County (Beverly Hills, Santa Monica, Pasadena, etc.) are NOT subject to Measure ULA.

Are the Measure ULA thresholds fixed?

No. The $5.3M and $10.6M thresholds (2025 figures) are adjusted each April 1 based on the Consumer Price Index. Always verify the current thresholds at the City of Los Angeles Office of Finance website.

Is Measure ULA being challenged in court?

Yes, as of 2025 there are ongoing legal challenges to Measure ULA. The tax has remained in effect during litigation. Consult a real estate attorney for current legal status before a transaction.

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Related Guides

San Francisco, CA
Six-tier cliff structure — up to 6%
Washington, DC
Two separate taxes — ~3.9% combined at mid-market
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