The California mansion tax isn’t a single statewide levy. It’s a set of local transfer taxes passed by voters in a handful of charter cities, charged once when high-value property changes hands. Rates run from roughly 0.75% to 6% of the sale price depending on the city and the price, and in most places the rate applies to the entire sale amount rather than just the portion above the threshold. Los Angeles, San Francisco, Santa Monica, Culver City, and San Jose are the cities that matter.
What the Tax Actually Is
This is a one-time documentary transfer tax, not an annual property tax. It is triggered at the close of escrow when real property is sold. It applies to all real property, including commercial buildings and apartment complexes, not just single-family homes.
Each city sets its own thresholds and rates. Every California sale also carries a base documentary transfer tax of $1.10 per $1,000 (0.11%), and charter cities can set a higher base rate on top of that.1California Legislative Information. California Revenue and Taxation Code RTC 11911 Los Angeles, for example, charges a 0.45% base rate on every transfer regardless of price.2Los Angeles Office of Finance. Real Property Transfer Tax and Measure ULA FAQ The mansion tax rates below are stacked on top of whatever base rate applies locally.
Rates by City
Los Angeles (Measure ULA)
Voters approved Measure ULA in November 2022, effective April 1, 2023. The thresholds adjust annually for inflation. For transactions closing after June 30, 2025:2Los Angeles Office of Finance. Real Property Transfer Tax and Measure ULA FAQ
- Over $5.3 million but under $10.6 million: 4% on the full sale price
- $10.6 million or more: 5.5% on the full sale price
Both tiers come on top of LA’s 0.45% base transfer tax. A $6 million sale in Los Angeles would owe $240,000 in ULA tax plus $27,000 in base transfer tax, for a combined $267,000. Revenue funds affordable housing and homelessness prevention.2Los Angeles Office of Finance. Real Property Transfer Tax and Measure ULA FAQ
Thresholds adjust each year with the Chained Consumer Price Index. The exact cutoffs for closings after June 30, 2026, had not been published at the time of writing, so confirm current figures with the Los Angeles Office of Finance before closing.
San Francisco
San Francisco applies a tiered transfer tax to every property sale, with rates that climb steeply at the top:3SF.gov. Transfer Tax
- Up to $250,000: 0.5%
- $250,000 to $1 million: 0.68%
- $1 million to under $5 million: 0.75%
- $5 million to under $10 million: 2.25%
- $10 million to under $25 million: 5.5%
- $25 million or more: 6%
The rate applies to the entire consideration, not just the amount above the threshold.
Santa Monica (Measure GS)
Santa Monica voters passed Measure GS in November 2022, with the high-value tier effective March 1, 2023:4City of Santa Monica. General Election 2022 – Measure GS
- Under $5 million: 0.3%
- $5 million to under $8 million: 0.6%
- $8 million or more: 5.6%
The jump from 0.6% to 5.6% at $8 million creates a sharp cliff. A sale at $7.9 million owes roughly $47,400 in transfer tax. A sale at $8.1 million owes about $453,600. Price negotiations near that line matter.
Culver City (Measure RE)
Culver City’s Measure RE, approved in November 2020 and effective April 1, 2021, is the one city that uses true marginal brackets. Each rate applies only to the dollars that fall within its bracket, the way federal income tax works:5City of Culver City. Real Property Transfer Tax
- Up to $1,499,999: 0.45%
- $1,500,000 to $2,999,999: 1.5%
- $3,000,000 to $9,999,999: 3%
- $10,000,000 and above: 4%
Because higher rates hit only the dollars inside each bracket, Culver City’s effective rate on a given sale is noticeably lower than a comparable all-in-price structure elsewhere.
San Jose (Measure E)
San Jose’s Measure E took effect July 1, 2020. The threshold adjusts for inflation, and as of July 1, 2025, the tax applies to sales exceeding $2.3 million. Below that, transfers are exempt from this additional tax. Above it, the rate applies to the full sale price:6Office of the County Clerk-Recorder. Measure E
- Over $2.3 million to $5 million: 0.75%
- Over $5 million to $10 million: 1%
- Over $10 million: 1.5%
San Jose’s rates are lower than Los Angeles or San Francisco, but the threshold is far lower too, pulling in a meaningful share of the market rather than only ultra-luxury properties.
Full-Price Rates Create Cliffs
In every city on this list except Culver City, crossing a threshold by $1 moves the higher rate onto the entire sale price. The Santa Monica cliff at $8 million is the most dramatic, but LA and San Francisco have the same structure. If a sale price is close to a bracket line, the difference between landing just under versus just over can be hundreds of thousands of dollars. That math belongs in the negotiation, not the post-closing review.
Who Pays and When
There is no uniform rule across California for who pays. Measure ULA in Los Angeles does not specify buyer or seller, leaving it to the parties. In Culver City, either side can pay, but if neither does, both are jointly liable to the city.5City of Culver City. Real Property Transfer Tax Local custom in much of California puts transfer taxes on the seller, but custom is not law, and at these dollar amounts the allocation is almost always spelled out in the purchase agreement.
The tax is collected at the close of escrow. The escrow company calculates it, remits it to the local government, and only then is the deed recorded.
Exemptions
Each city defines its own exemptions. In Los Angeles, Measure ULA exempts sales to governmental entities and to established 501(c)(3) nonprofits that have held tax-exempt status for at least ten years and have less than $1 billion in assets. Nonprofits with a track record in affordable housing development or management can also qualify, including limited partnerships where a nonprofit or community land trust is the general partner.7LAHD – City of Los Angeles. ULA Exemption Eligibility Guidelines
San Jose exempts transfers below its inflation-adjusted threshold entirely.6Office of the County Clerk-Recorder. Measure E Standard documentary transfer tax exemptions under state law also apply, covering transfers between spouses, certain trust transfers, and similar categories. If you think an exemption may apply, raise it with your escrow officer or real estate attorney before closing. After the fact is harder.
Federal Tax Treatment
Transfer taxes on the sale of a personal home are not deductible on a federal income tax return.8Internal Revenue Service. Tax Information for Homeowners They do factor into the cost equation two different ways:
- Buyers who pay transfer taxes can add them to the property’s cost basis, which reduces the taxable gain on a later sale.
- Sellers who pay transfer taxes count them as selling expenses, which reduces the amount realized and therefore any capital gain.9Internal Revenue Service. Property (Basis, Sale of Home, Etc.)
On a $10.6 million LA sale, the transfer tax alone exceeds $630,000. Getting it onto the right line of the return isn’t a minor detail.
The 2026 Ballot Measure
The Howard Jarvis Taxpayers Association is backing a constitutional amendment for the November 2026 ballot that would bar charter cities from charging real estate transfer taxes above the standard 0.11% base rate. If voters approve it, the measure would not only block future mansion taxes but also overturn all existing voter-approved transfer taxes that exceed the cap, including Measure ULA, Measure GS, and every other tax covered here, two years after enactment.10Ballotpedia. California Two-Thirds Vote Requirement for Special Taxes and Charter City Real Estate Transfer Tax Prohibition Initiative (2026)
A similar earlier version was struck from the 2024 ballot by the California Supreme Court, which held it proposed too sweeping a change to go through as an initiative. The 2026 version has been drafted more narrowly to avoid that result. Whether it qualifies for the ballot and how voters decide will determine whether California’s mansion taxes survive past 2028.