Measure ULA in Los Angeles: What Every Seller Above $5 Million Needs to Know Before Closing

What is Measure ULA and how does it affect home sellers in Los Angeles?

Measure ULA, often called the "mansion tax," is a City of Los Angeles transfer tax that applies to residential and commercial property sales above specific thresholds. Sellers pay 4% on the total sale price for transactions above approximately $5.4 million and 5.5% on sales above approximately $10.9 million. The thresholds adjust annually for inflation on July 1. Measure ULA applies to properties within LA City limits only and is calculated on the full sale price, not just the amount above the threshold.

By Paul Blair | May 27, 2026

If your home sits inside LA City limits and you're thinking about selling for more than $5 million, Measure ULA changes your math significantly.

Most sellers hear about this tax late. They've already negotiated a price, accepted an offer, and opened escrow. Then someone from the escrow company mentions a line item that runs into the hundreds of thousands of dollars. At that point, your options narrow fast.

Here's what you need to know before that moment arrives.

What Measure ULA Actually Is (And What It Isn't)

Measure ULA is a City of Los Angeles transfer tax. Voters approved it in November 2022, and it took effect April 1, 2023.

The tax applies at two tiers:

• 4% on the full sale price for transactions above approximately $5.4 million
• 5.5% on the full sale price for transactions above approximately $10.9 million

Both thresholds adjust annually for inflation. They change July 1, so if you're planning a sale this summer, timing matters. The updated 2026-2027 figures will be published by the City before July 1.

One thing sellers consistently get wrong: the tax isn't on the amount above the threshold. It's on the entire sale price. If you sell a home in Brentwood for $6 million, you pay 4% on the full $6 million ($240,000), not 4% on the $600,000 above the threshold ($24,000).

That distinction alone changes how you think about pricing.

What it isn't: Measure ULA is not the standard documentary transfer tax that applies county-wide. Los Angeles County charges $1.10 per $1,000 of value. The City of Los Angeles adds its own city transfer tax of $4.50 per $1,000 on top of that. Those two combined come to about $33,600 on a $6 million sale. Measure ULA adds $240,000 more on that same transaction.

Where Measure ULA Applies (And Where It Doesn't)

This is where sellers run into the most confusion.

Measure ULA applies to the City of Los Angeles. That's not the same as Los Angeles County, and it doesn't cover every neighborhood people associate with "Los Angeles."

Beverly Hills is an independent city. Culver City is its own city. Malibu, Santa Monica, West Hollywood, and most unincorporated areas of the county fall outside the City of Los Angeles and are not subject to Measure ULA.

But many of the most active luxury markets are inside city limits. Bel Air, the Hollywood Hills, Silver Lake, Los Feliz, Venice, and the canyons all fall within the City of Los Angeles. If you own in those areas, Measure ULA applies.

If you're not sure where your property falls, the LA County Assessor's portal and your escrow officer can confirm within minutes. Don't assume, and don't rely on ZIP codes. They don't follow city boundary lines.

Running the Real Numbers on a Typical LA Seller's Net Sheet

Take a seller with a home in the Hollywood Hills priced at $7.5 million.

The transfer taxes alone break down like this:

• LA County documentary transfer tax: $8,250 ($1.10 per $1,000)
• LA City base transfer tax: $33,750 ($4.50 per $1,000)
• Measure ULA (4% on full $7.5M sale price): $300,000

Total transfer taxes: $342,000

Add the rest of standard seller costs. Agent commissions in LA typically run 2-3% for the listing side. Escrow fees on a $7.5 million transaction usually fall in the $4,500-$6,000 range. Title insurance for the seller, staging, any credits negotiated during inspection, and prorated property taxes push total selling costs to 8-11% before Measure ULA enters the picture. With the tax, many sellers above $7.5 million are looking at 12-14% of their sale price going out the door before they see a dollar.

Your specific number depends on your home's condition, the final negotiated price, and what comes up in escrow. But the general direction is clear: this is a material cost, and it deserves to be part of the planning conversation before you list, not after you accept an offer.

What's Happening With ULA Politically

Measure ULA has generated ongoing legal and political challenges since it passed.

The Howard Jarvis Taxpayers Association has qualified a ballot measure for November 2026 that would repeal or significantly curtail it. If that measure passes, sellers completing transactions after the effective date of any repeal would not pay the tax. But that's a November vote, and an effective date for any repeal would come afterward.

More than $1 billion has been collected under Measure ULA since April 2023, so the city has a strong fiscal interest in keeping it in place. Constitutional challenges have been filed; courts have generally upheld the tax so far.

For sellers planning a transaction in the next 6-12 months, the practical position is to treat ULA as real and plan around it. A political shift is possible, but closing timelines don't wait for election results.

How Sellers Are Adapting

Some sellers are factoring ULA into their list price from the start. If you're netting less than expected because of the tax, it changes what number you need to hit at close, which changes your starting price conversation.

Others are examining the timing question carefully. If the annual indexed threshold adjustment moves the line meaningfully, there can be real value in timing a sale to close before or after July 1. A few hundred thousand dollars in price positioning around an adjusted threshold can shift the tax burden significantly.

If you own a property near the current threshold (just above $5.4 million, or approaching $10.9 million), the pricing conversation is worth having carefully. Listing price, likely sale price, and where the ULA tiers kick in should all be on the table together.

Frequently Asked Questions

Does Measure ULA apply to every home sale in Los Angeles?

No. It applies to properties within the City of Los Angeles (not all of LA County) that sell above the indexed thresholds, currently approximately $5.4 million at the 4% tier and $10.9 million at the 5.5% tier. Properties in independent cities like Beverly Hills, Santa Monica, or Culver City are not subject to Measure ULA.

Is Measure ULA paid by the buyer or the seller?

Measure ULA is a seller-paid tax. It's deducted from the seller's proceeds at close, similar to other transfer taxes. Buyers do not pay it directly, though it can influence pricing negotiations.

Does Measure ULA apply to the entire sale price or just the amount above the threshold?

The tax applies to the full sale price, not just the amount above the threshold. A $6 million sale pays 4% on the full $6 million ($240,000), not 4% on the $600,000 above $5.4 million. This is one of the most common misconceptions sellers have about how the tax is calculated.

When do the thresholds change?

The thresholds adjust annually for inflation on July 1. The updated 2026-2027 figures will be published by the City of Los Angeles before July 1, 2026. Sellers timing a close around that date should confirm the current thresholds with their escrow officer.

What if my home is near the threshold? Is it worth pricing below it?

That's exactly the kind of question worth modeling out. On a $5.5 million sale, the Measure ULA bill is $220,000. On a $4.9 million sale, there's no Measure ULA at all. Whether it's practical to price below the threshold depends on comparable sales in your area, what buyers are willing to pay, and your timeline. A current market analysis with these numbers in front of you is the right starting point.

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This sale is going to cost more than most sellers expect. Getting the net sheet right before you list, not after escrow opens, is the work that makes the difference.

If you want to know what your home is worth and what you'd actually net after ULA, transfer taxes, commissions, and closing costs, start with a home value estimate at greysq.com/home-value. Or reach out directly at greysq.com/contact and we can walk through the numbers together.

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About Paul Blair

Paul Blair is the founder and broker of Grey Square, a virtual real estate brokerage representing buyers and sellers across Dallas and Los Angeles. With 22 years in the business and more than $200 million in closed transactions, Paul works the full range of the market, from luxury homes in the Park Cities and Preston Hollow to estates in the Hollywood Hills and across the Westside. Connect with Paul and the Grey Square team at greysq.com. TX TREC #9011505. CA DRE #01792671.