You find a buyer, agree on a price, and then a tax bill of several hundred thousand dollars lands at closing. That is the surprise many owners face with Measure ULA, the city tax behind the mansion tax Los Angeles sellers keep hearing about. The smart move is to model the tax before you price the home. This guide explains how it works and what is on the ballot, so you can plan with a trusted Los Angeles real estate broker at your side.
What Is the Measure ULA Transfer Tax?
Voters in the City of Los Angeles approved Measure ULA in 2022, and collection began in April 2023. The money pays for affordable housing, tenant support, and homelessness prevention. The city has collected roughly $1.2 billion in funding so far, according to the City of Los Angeles Office of Finance.
How does Measure ULA affect home sellers? It adds a seller-side cost based on the full sale price. The tax has two tiers, and the thresholds rise with inflation every July 1. The Measure ULA tax rate on homes over $5 million starts at 4%.
How much is the mansion tax when selling a house in Los Angeles? It depends on where your price lands. These Measure ULA thresholds 2026 figures apply to closings after June 30, 2026:
- Under $5.4 million: no ULA tax
- $5.4 million up to $10.9 million: 4%
- $10.9 million and above: 5.5%
The rate applies to the full sale price, from the first dollar. A $10.9 million sale, for example, owes $599,500. In most sales the seller pays, so ask your attorney how your contract handles it. Confirm the current figures with the Office of Finance before you list.
Los Angeles Luxury Home Sellers Transfer Tax: Which Markets Fall Inside the City?
Measure ULA reaches only property inside City of Los Angeles limits. Several luxury areas qualify, including Hollywood Hills, Hancock Park, and the three neighborhoods below.
Measure ULA Bel Air Home Sale
A Bel Air listing sits inside the city. Any sale at or above $5.4 million owes the tax, and many estates there land in the 4% or 5.5% tier.
Holmby Hills Real Estate and Measure ULA
Holmby Hills real estate also falls inside city limits. Owners should expect the same tiered tax on the full sale price.
Brentwood Luxury Home Sale Transfer Tax
A Brentwood sale carries the same transfer tax once the price clears the threshold. Check your price against the tiers before you list.
Neighbors the Tax Does Not Reach
Beverly Hills, Santa Monica, and West Hollywood are separate cities with their own governments. So the answer to “does Measure ULA apply to Beverly Hills” is no. A mailing address can mislead, so confirm which jurisdiction your parcel sits in before you assume anything.
A Simple Measure ULA Example of Seller Net Proceeds
Say a Brentwood home sells for $8 million. At 4%, the ULA tax is $320,000. The city and county also charge base transfer taxes of about 0.45% and 0.11%, which are separate from ULA. Together they add roughly $44,800.
That brings total transfer taxes to about $364,800, before commissions and other closing costs. Income tax on your gain is a different matter, so a CPA should model that too.
Now look at the edge. A sale at $5.3 million owes no ULA tax, while a sale at $5.4 million owes $216,000. That jump is why pricing needs care. Start with a clear view of what your home is worth, then compare net proceeds at several prices.
The Measure ULA November Ballot: What Is Pending
Here is where things stand as of October 11, 2026:
- On the ballot: The City Council voted 13 to 1 on August 4 to send a targeted question to voters on November 3. It would give a one-time, five-year exemption to owners affected by the January 2025 Palisades fire, as described in a recent legal update on the ULA ordinance.
- Shelved: After a committee review, the council set aside a proposal to exempt new multifamily buildings, so it will not appear this year.
- Withdrawn: A statewide taxpayer group pulled its initiative to cap local transfer taxes across California after a deal in Sacramento.
- Undecided: Voters have yet to decide the Palisades question, and a Measure ULA repeal or reform ballot measure could return in a future election.
None of the pending items changes the rates for a typical luxury seller. Watch the results, but do not treat November 3 as a listing deadline.
Should I Sell My House Before the Measure ULA Vote? Your Preparation Checklist
For most owners, the vote is not a reason to rush. Weigh the tax and the market together, and use this checklist:
- Request a professional home valuation so your luxury home valuation in Los Angeles before selling rests on real data.
- Speak with a CPA or real estate attorney early. They can review income tax, estate plans, and contract terms.
- Model net proceeds at three or four price points.
- Compare timing with market conditions, such as buyer demand, inventory, and interest rates.
- Work with a luxury real estate broker in Los Angeles who can confirm jurisdiction and share local sales data.
Conclusion
Measure ULA is a seller cost you can plan for. The thresholds are $5.4 million and $10.9 million, the rates are 4% and 5.5%, and the November ballot leaves both in place for most sellers. Early modeling, honest pricing, and sound tax advice lead to better results.
The Roger Perry Group team helps owners with pricing and valuation. Start with a home valuation and a plain look at your net proceeds. Owners of Bel Air estates, Holmby Hills properties, and Brentwood homes can also ask for guidance specific to their community.
Frequently Asked Questions
Q: Who pays Measure ULA, the buyer or the seller? A: In most sales the seller pays it at closing. Your purchase contract and escrow instructions set the details, so review them with a real estate attorney.
Q: Does Measure ULA apply to Beverly Hills? A: No. Beverly Hills is a separate city, so a sale there owes no ULA tax. Other taxes and fees can still apply, so ask your advisor for the full cost.
Q: City of Los Angeles transfer tax vs county transfer tax: what is the difference? A: The base city rate is about 0.45% and the county rate is about 0.11% on every sale. Measure ULA is an extra tax on top of those, charged only on high value sales inside the city.
Q: Could Measure ULA be repealed? A: No repeal measure is on this November ballot, because the statewide initiative was withdrawn. Future efforts are possible, so keep an eye on council and state news.
Q: How do I know if my price lands near a threshold? A: Start with an estimate of the sale price. You can see what your home could sell for and compare it to $5.4 million and $10.9 million.
This article is general information and not tax or legal advice. Speak with a qualified CPA or real estate attorney about your own sale.