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
Measure ULA is still in effect. Two November 3, 2026 ballot measures spoke to it, and the litigation that challenged the tax is over. Statewide and city results described here are unofficial until they are certified.
California Proposition 43 failed. The Associated Press called the result, and unofficial returns compiled by CalMatters, Ballotpedia, and other outlets showed roughly 57 percent No. Prop 43 would not have repealed ULA on its own in any event; it concerned the vote threshold for citizen-initiated local special taxes, which still need only a simple majority. The California Secretary of State is scheduled to certify statewide results on December 11, 2026. Until then, treat the Prop 43 figures as unofficial.
Los Angeles Proposition TE (Measure TE) is passing per unofficial results, but it is not yet certified. LAist, updating on November 5, 2026 with about 67 percent of the vote counted, reported the measure leading. Ballotpedia has listed it as approved. The Los Angeles City Clerk still labels the returns “Election Results (Unofficial).” Los Angeles County is scheduled to certify on November 27, 2026. Until certification, present TE as leading or approved per unofficial results — not as a final official result.
If certified as approved, TE would create a one-time Measure ULA exemption or refund for sales of residential property that was damaged or destroyed in the Palisades Fire, by the owner of record as of January 7, 2025, through January 6, 2030. Confirm the ordinance text and eligibility with the city; this page is not tax advice.
The court challenges are over. In Howard Jarvis Taxpayers Assn. v. City of Los Angeles (2025) 116 Cal.App.5th 1208, the Court of Appeal upheld ULA. The California Supreme Court denied review, and the plaintiffs did not seek U.S. Supreme Court review, according to Burke, Williams & Sorensen, counsel for the city.
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 November 10, 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
- The Associated Press, CalMatters and Ballotpedia on Proposition 43 (failed; unofficial until the California Secretary of State certifies on December 11, 2026)
- LAist, Proposition TE explainer and November 5, 2026 results update
- Los Angeles City Clerk, Election Results (Unofficial), November 3, 2026
- Burke, Williams & Sorensen on HJTA v. City of Los Angeles and the end of the litigation
This article is general information, not legal, tax or financial advice. Confirm current rates with the City of Los Angeles and your advisors.