The LA mansion tax is a city transfer tax that adds 4% or 5.5% to the sale of Los Angeles real estate valued at $5.3 million or more. Formally called Measure ULA (United to House LA), the voter-approved tax took effect April 1, 2023, and applies to every kind of property transfer inside City of Los Angeles boundaries: single-family homes, apartment buildings, offices, and raw land alike.1City of Los Angeles Office of Finance. Real Property Transfer Tax and Measure ULA FAQ The seller is legally on the hook, and the tax layers on top of the city’s existing base transfer tax and the separate Los Angeles County transfer tax.
How Much You’ll Owe
As of July 1, 2025, the tax has two tiers based on the property’s gross value:1City of Los Angeles Office of Finance. Real Property Transfer Tax and Measure ULA FAQ
- 4% when the value is more than $5,300,000 but less than $10,600,000
- 5.5% when the value is $10,600,000 or more
The rate applies to the entire sale price, not just the portion above the threshold. A property selling for $5,400,000 owes 4% on the full $5,400,000, so a deal that lands just above the threshold generates a dramatically bigger tax bill than one that closes just below it.
The thresholds adjust annually based on the Bureau of Labor Statistics’ Chained Consumer Price Index, and the city publishes updated numbers before each July 1. Sellers closing mid-year should confirm the current figures with the Office of Finance; as of early 2026, the thresholds effective July 1, 2026, had not yet been published.1City of Los Angeles Office of Finance. Real Property Transfer Tax and Measure ULA FAQ
The ULA tax sits on top of the City of Los Angeles’ base documentary transfer tax of $2.25 per $500 of consideration, or 0.45%. Combined, a Tier 1 sale carries a 4.45% city rate and a Tier 2 sale carries 5.95%.1City of Los Angeles Office of Finance. Real Property Transfer Tax and Measure ULA FAQ Los Angeles County adds its own documentary transfer tax of $1.10 per $1,000 of value on top of that.2LAVote.gov. General Info
On a $6,000,000 sale (Tier 1):
- ULA tax: $240,000
- Base city transfer tax: $27,000
- Total city taxes: $267,000
On a $12,000,000 sale (Tier 2):
- ULA tax: $660,000
- Base city transfer tax: $54,000
- Total city taxes: $714,000
One wrinkle: the base city tax is calculated on the consideration (what the buyer pays in cash), while the ULA tax is calculated on the gross value, which includes the balance of any loans or liens still on the property.1City of Los Angeles Office of Finance. Real Property Transfer Tax and Measure ULA FAQ In a straightforward all-cash or new-financing sale, those numbers are the same. When the buyer assumes an existing mortgage, gross value can exceed the cash consideration and push the ULA calculation higher.
Who Pays and How It’s Collected
The seller (the “transferor”) is legally responsible for the tax.1City of Los Angeles Office of Finance. Real Property Transfer Tax and Measure ULA FAQ In practice, escrow or the title company handles it at closing. The Los Angeles County Recorder collects the payment when the deed is recorded and forwards the city’s share to the Office of Finance.3City of Los Angeles Housing Department. ULA Exemptions FAQ A ULA Declaration Form reporting the gross value and the tax owed must accompany the payment, along with any documentation supporting an exemption.
What Transfers Are Covered
Selling the building isn’t the only trigger. Transferring a controlling interest in a corporation, partnership, or LLC that owns high-value LA property can generate the same tax, using the same ownership-change framework California uses for property tax reassessment.1City of Los Angeles Office of Finance. Real Property Transfer Tax and Measure ULA FAQ
There is a narrow carveout for partnerships. If the entity qualifies as a “continuing partnership” under Internal Revenue Code Section 708, meaning the partnership itself continues even as individual partners’ stakes change, the transfer of a partnership interest may not trigger ULA.4Office of the Law Revision Counsel. 26 USC 708 – Continuation of Partnership Whether a specific restructuring qualifies is a legal question worth getting right before the closing.
Exemptions
The exemption list is narrower than most sellers hope, and even qualifying parties usually have to pay first and claim a refund afterward.
Transfers Already Exempt From the Base City Tax
Anything exempt from the city’s base documentary transfer tax under local, state, or federal law is also exempt from ULA.1City of Los Angeles Office of Finance. Real Property Transfer Tax and Measure ULA FAQ Under California Revenue and Taxation Code Sections 11911 and 11927, transfers between spouses and transfers made pursuant to a divorce decree qualify.5LAVote.gov. Documentary Transfer Tax Statutes Changes in how title is held, such as deeding a property into your own revocable trust, also fall in this category because beneficial ownership doesn’t change.
Government Buyers and Older, Smaller Nonprofits
LAMC Section 21.9.15 exempts transfers to federal, state, and local government agencies. It also covers 501(c)(3) organizations, but with two conditions: the nonprofit must have held its 501(c)(3) designation for at least ten years, and it must have less than $1 billion in total assets.6City of Los Angeles. ULA Exemption Eligibility Guidelines
Affordable Housing Buyers
LAMC Section 21.9.14 exempts transfers to organizations that develop or operate deed-restricted affordable housing. Eligible buyers include nonprofit affordable housing developers, Community Land Trusts, and limited partnerships or LLCs where a nonprofit or land trust serves as the general partner or managing member.6City of Los Angeles. ULA Exemption Eligibility Guidelines The Los Angeles Housing Department administers eligibility.7Los Angeles Housing Department. ULA Exemptions
The Pay-First, Refund-Later Problem
The city has historically required the full ULA tax to be paid at closing even when an exemption applies. The exempt party then files for a refund with the Office of Finance, submitting an eligibility certification from LAHD or other supporting documentation. Hundreds of thousands of dollars can sit tied up in that process, so buyers relying on an exemption should plan for the cash-flow gap.
Federal Income Tax Treatment
The ULA tax isn’t deductible on your federal return, but it does affect your gain calculation. As a seller, transfer taxes count as a selling expense that reduces your amount realized, which lowers your taxable gain.8Internal Revenue Service. Tax Information for Homeowners On a $12 million sale carrying $714,000 in combined city transfer taxes, that adjustment can meaningfully shrink the capital gains bill.
If the buyer ends up paying the transfer tax by negotiation, the buyer adds it to their cost basis in the property, reducing the taxable gain when they eventually sell.8Internal Revenue Service. Tax Information for Homeowners
Legal Challenges That Could Affect What You Owe
Measure ULA has been in court since shortly after it passed. The Howard Jarvis Taxpayers Association sued, arguing the measure violates the Los Angeles City Charter because voters can’t enact by initiative a special-purpose transfer tax the City Council itself couldn’t adopt. A Los Angeles Superior Court judge ruled against the challenge, and the case is now before the California Court of Appeal, Second Appellate District, as Case No. B334071; oral argument was scheduled for September 2025.
If Measure ULA is eventually struck down, property owners who paid the tax may be entitled to refunds, but only if they filed timely refund claims. Sellers who want to preserve that option should file a Claim for Refund with the Office of Finance within one year of paying the tax.