What Is the LA "Mansion Tax" (Measure ULA), and Who Actually Pays It?

Measure ULA, commonly called the “mansion tax,” is a Los Angeles city transfer tax that applies to property sales above $5.4 million, charging 4% on sales between roughly $5.4 million and $10.9 million, and 5.5% on sales at or above $10.9 million. It's not just mansions — the tax applies to any property type, residential or commercial, sold within the City of Los Angeles, and it's calculated on the entire sale price, not just the amount above the threshold.

How Much Does Measure ULA Actually Cost?

Unlike a typical marginal tax, Measure ULA applies to the full transaction value once a sale crosses the threshold — not just the portion above it. For example, a $5.5 million sale owes about $220,000, which is 4% of the entire price, not 4% of the amount over $5.4 million. The City adjusts both thresholds annually for inflation, so the exact cutoffs shift slightly each year; as of mid-2026, qualifying transactions use thresholds of about $5.4 million and $10.9 million. Measure ULA is separate from — and stacks on top of — the City's base 0.45% transfer tax and the Los Angeles County documentary transfer tax.

Which Properties Are Subject to Measure ULA?

The tax applies to property located within the City of Los Angeles, approved by voters in November 2022 and in effect since April 1, 2023. It is not limited to residential “mansions” — commercial and multifamily properties above the threshold are subject to it too. Jurisdiction matters here: Beverly Hills proper and West Hollywood are separate cities and not subject to Measure ULA, even though they're surrounded by LA. Some “90210” addresses with a Beverly Hills Post Office mailing address are actually inside the City of Los Angeles, so it's worth verifying a parcel's actual jurisdiction rather than assuming based on the zip code. Santa Monica has its own separate tiered transfer tax structure.

Are There Any Exemptions?

Measure ULA allows limited exemptions, including for certain qualified affordable housing organizations, qualifying nonprofit entities, government and public entities, and transactions that are otherwise exempt from the City's base transfer tax. Because exemption rules are narrow and fact-specific, don't assume one applies without professional review from a real estate attorney or CPA familiar with the ordinance.

How Is Measure ULA Revenue Used?

Revenue from Measure ULA funds affordable housing development and homelessness prevention programs through the City's House LA initiative. In 2026, the LA City Council considered a broader package of reforms — including an exemption for new apartment construction — but shelved that effort in July 2026, keeping the tax fully intact. A narrower measure asking voters to exempt Pacific Palisades homeowners who must sell within five years of the Palisades Fire was placed on the ballot separately.

Does Measure ULA Affect Typical Home Sales?

For the vast majority of Southern California home sales, no — the $5.4 million threshold is well above most residential transactions across LA County. It mainly affects luxury home sales, larger multifamily buildings, and significant commercial transactions. That said, if you're selling a high-value property anywhere near the threshold, it's worth running the numbers early, since crossing the line by even a small amount triggers tax on the full sale price, not just the excess.

Frequently Asked Questions

Is Measure ULA based on profit or sale price?
Sale price. It's a transfer tax based on the gross transaction value, not a capital gains tax, so it doesn't matter what the seller originally paid or how much the property appreciated.

Does Measure ULA apply outside the City of Los Angeles?
No. It only applies to property within LA city limits. Unincorporated LA County areas and separate cities like Beverly Hills, West Hollywood, and Santa Monica are not subject to Measure ULA, though some may have their own local transfer taxes.

Can the buyer and seller split the Measure ULA tax?
The ordinance assigns the tax to the seller, but like any closing cost, the allocation can become a negotiating point between buyer and seller as part of the purchase agreement.

Do liens or assumed loans affect the Measure ULA calculation?
Yes — for Measure ULA purposes, the City generally uses gross property value, including remaining liens and any assumed seller financing, which can differ from how the base transfer tax treats a transaction.

Updated for October 2026.