The LA Mansion Tax (Measure ULA) in 2026: What Sellers Need to Know
If you're selling a home in the City of Los Angeles for $5.4 million or more in 2026, expect an extra transfer tax. Measure ULA, the so-called "mansion tax", adds 4% on sales from $5.4M to $10.9M and 5.5% on sales of $10.9M and above, on top of the existing city and county transfer taxes. It's paid by the seller, applies to the full sale price (not just the amount over the threshold), and the thresholds rise each year with inflation.
This is one of the most misunderstood costs on the Westside, and it changes real numbers on real deals. Here's a clear, current breakdown, and a few strategies I walk sellers through.
What is Measure ULA?
Measure ULA ("United to House LA") is a City of Los Angeles transfer tax approved by voters and in effect since April 2023. It funds affordable housing and homelessness programs, and as of early 2026 it has collected more than $1 billion. Despite the "mansion tax" nickname, it applies to all real property over the threshold, including commercial buildings, apartment buildings, and land, not just single-family mansions.
What are the 2026 mansion tax rates and thresholds?
The thresholds are adjusted every year based on the Chained Consumer Price Index. For transactions closing on or after July 1, 2026:
4% on sales from $5.4 million up to $10.9 million
5.5% on sales of $10.9 million and above
$0 below $5.4 million (Measure ULA doesn't apply)
Because the figures reset annually, always confirm the exact current threshold for your closing date, a sale that's just under the line one year could be over it the next.
How much does the mansion tax actually cost?
This is the part that surprises people: the tax applies to the entire sale price, not just the portion above the threshold. So a home that sells for exactly $5.4 million owes 4% of the whole $5.4M, about $216,000, while a home just below the threshold owes nothing under ULA.
That "cliff" right at the threshold is why pricing strategy matters so much near $5.4M. And it's on top of the pre-existing combined city + county documentary transfer taxes (roughly 0.56%), so the total transfer-tax bill on a high-end sale is significant.
Who pays it, buyer or seller?
The seller pays Measure ULA. That means if you're listing a luxury Westside home, this comes out of your proceeds, and it should be factored into your net-sheet from day one. I build ULA into every seller net-proceeds estimate so there's no six-figure surprise at closing.
How the mansion tax affects the Westside market
The neighborhoods I work in, Malibu, Pacific Palisades, Santa Monica, Brentwood, are exactly where ULA hits hardest, because so many homes trade above $5.4M. Research from UCLA found the tax measurably reduced the number of high-value transactions, with the odds of a property selling above the $5M threshold dropping sharply after ULA took effect. In practice, that shows up as:
More negotiation and creativity on deals hovering near the threshold
Sellers weighing timing and pricing more carefully
Buyers and sellers occasionally structuring deals to account for the cost
None of this means luxury homes aren't selling, Malibu's ultra-luxury market, for example, has stayed strong. It means the strategy around pricing and net proceeds is more important than it used to be.
Can you reduce or avoid the mansion tax?
There's no magic loophole, and I'd be wary of anyone promising one. But there are legitimate considerations I talk through with sellers: pricing strategy relative to the threshold, timing of the sale, and understanding which transfers are exempt. Every situation is different, and this is a place where your agent, your tax advisor, and often an attorney should all be in the room. (I'm a real estate agent, not a tax attorney, please treat this as general information, not tax or legal advice, and confirm specifics with a qualified professional.)
LA mansion tax FAQs
What is the mansion tax threshold in Los Angeles in 2026? For sales closing on or after July 1, 2026, Measure ULA applies at $5.4 million. Sales from $5.4M to $10.9M are taxed at 4%, and sales of $10.9M or more at 5.5%. Thresholds adjust each year with inflation.
Does the mansion tax apply to the whole price or just the amount over $5.4M? The whole sale price. A $6M home is taxed 4% on the entire $6M, not just the amount above the threshold, which creates a meaningful "cliff" right at the line.
Who pays the LA mansion tax, the buyer or the seller? The seller pays it, so it should be built into your net-proceeds estimate before you list.
Does Measure ULA apply outside the City of LA? No. It's a City of Los Angeles tax. Homes in separate cities like Beverly Hills, Culver City, or unincorporated areas aren't subject to ULA, though some of those cities have their own transfer taxes. This is exactly why knowing the jurisdiction of your specific property matters.
Selling a luxury home on the Westside? I'll prepare a full net-proceeds estimate with Measure ULA built in, so you know your true bottom line before you list. Get in touch for a private consultation, or explore my guides to Malibu, Pacific Palisades, and Santa Monica.
Megan Majd, Compass · DRE #02089919 · (310) 845-6209 · This article is general information, not tax or legal advice.