AnswerFor sales closing on or after July 1, 2026, Los Angeles's Measure ULA adds a 4% tax on property sold for more than $5.4 million and less than $10.9 million, and 5.5% at $10.9 million or more. That's according to the City of Los Angeles Office of Finance. It applies only to property inside the City of Los Angeles and is charged on top of the existing city and county transfer taxes.
The 2026 thresholds
| Sale price (closings July 1, 2026 onward) | ULA rate |
|---|---|
| $5.4M or less | 0% |
| More than $5.4M, less than $10.9M | 4% |
| $10.9M or more | 5.5% |
The thresholds are adjusted annually for inflation. The prior thresholds were $5.3 million and $10.6 million. The rate applies to the entire price, not just the portion above the threshold.
Illustration (arithmetic only, not a real sale): a $12,000,000 sale inside city limits owes 5.5% ULA, or $660,000. That is on top of the city's base transfer tax of 0.45% ($54,000) and the county's 0.11% ($13,200).
Where it applies, and where it doesn't
ULA applies only within the City of Los Angeles. That includes neighborhoods such as Bel Air, Brentwood, Pacific Palisades, Hollywood Hills and Encino. It does not apply in separate cities such as Beverly Hills, Santa Monica, Malibu or West Hollywood, which have their own transfer-tax rules. Check the property's actual jurisdiction, not its mailing address.
How it's calculated
- Gross value. The tax is based on the full consideration, including any loans assumed, not the seller's net proceeds.
- Who pays. The purchase contract allocates the tax between buyer and seller. Agree on this in writing.
- Exemptions. Certain qualifying nonprofits, community land trusts and similar organizations are exempt under LAMC 21.9.14 and 21.9.15.
Repeal and ballot status
- Statewide repeal initiative withdrawn. The Howard Jarvis Taxpayers Association withdrew its proposed statewide measure aimed at taxes like ULA on June 25, 2026, so it will not be on the November ballot.
- Proposition 43 (Nov. 3, 2026) would require a two-thirds vote for voter-initiated special taxes, starting Jan. 1, 2027. It does not repeal existing taxes such as ULA; reporting on the June deal noted it leaves existing transfer taxes untouched.
What it means for luxury sellers and buyers
- Pricing near a threshold. A sale at exactly $5.4M owes no ULA. One dollar more triggers 4% on the whole price. Sellers and agents weigh this when setting list prices.
- Net-proceeds planning. Model the tax early, alongside commissions and other closing costs.
- Jurisdiction. Two homes a few blocks apart can carry very different transfer taxes.
Talk with a local agent
Explore the California transfer tax and luxury home closing costs, or find a realtor on Haute Real Estate Network.
Featured: Haute Real Estate Network members in Los Angeles include Myra Nourmand of Nourmand & Associates in Beverly Hills, and Monica Antola of Antola Coastal Group, who serves Westside neighborhoods inside Los Angeles city limits, such as Brentwood and Pacific Palisades.
Related Haute Real Estate Network pages
Sources
Sources checked on October 19, 2026.
- City of Los Angeles Office of Finance, Real Property Transfer Tax and Measure ULA FAQ
- California Secretary of State, Proponent withdraws initiative to limit ability of voters to raise revenues for local government services (June 25, 2026)
- LAist, Measure to kill LA's 'mansion tax' won't be on November ballot after all
- CalMatters, California lawmakers cut a deal to pull tax cut proposal from ballot
- California Legislative Analyst's Office, Proposition 43 (November 3, 2026)
- California Secretary of State, Quick Guide to Propositions: Proposition 43
This article is general information, not legal, tax or financial advice. Confirm current rates with the City of Los Angeles and your advisors.