Aida DimejianMeasure ULA, often called the mansion tax, adds a large transfer tax to high-end sales. Whether it applies depends entirely on which city your home is in, and that isn't always obvious from the mailing address.
How Measure ULA works
Since April 2023, the City of Los Angeles has charged an extra transfer tax on property sales above a price threshold:
- 4% of the full sale price for sales above the first threshold, roughly $5.4 million as of July 2026
- 5.5% of the full sale price for sales above the second threshold, roughly $10.9 million
Two details catch people off guard. The tax applies to the entire price, not just the amount over the threshold. And the thresholds adjust every July 1, based on the closing date rather than the contract date. Confirm the current figures with the City of Los Angeles Office of Finance before you price or sign.
Where it applies
| Area | Inside City of LA? | Measure ULA |
|---|---|---|
| Sherman Oaks, Studio City, Encino | Yes | Applies |
| Silver Lake, Los Feliz, Hollywood Hills | Yes | Applies |
| Brentwood, Bel Air, Pacific Palisades | Yes | Applies |
| Venice | Yes | Applies |
| Santa Monica, Beverly Hills, West Hollywood | No, separate cities | Does not apply |
| Pasadena, Glendale, Burbank | No, separate cities | Does not apply |
| Marina del Rey, Altadena | No, unincorporated county | Does not apply |
Neighborhood names can be misleading. Pacific Palisades, Venice and Sherman Oaks all have their own identities, but they are part of the City of Los Angeles, so ULA applies to qualifying sales there. Meanwhile, some homes with a Los Angeles mailing address sit in unincorporated county areas where it doesn't. Always check the property against city limits.
What it means for pricing
Because the tax hits the full price, a sale just over the threshold can cost a seller far more than a sale just under it. That creates a real pricing gap near the threshold, and both buyers and sellers negotiate around it. If your home could sell near that line, the list price, the terms and even the closing date all deserve careful thought.
For buyers shopping above the threshold, comparable homes just across the city line, in places like Santa Monica, Beverly Hills or Pasadena, carry no ULA cost for the seller, which can affect pricing and negotiation.
Los Angeles County's standard transfer tax and the City of LA's base transfer tax still apply as usual. ULA is in addition to those. I'm not a tax advisor, so confirm the specifics for your sale with your escrow officer or CPA.